A project to bring an Academy Sports store to Starkville is temporarily on hold after financing issues relating to the project surfaced last month.
Representatives from Academy Sports are currently seeking a new developer on the project after the former developer—Multisite Properties—was unable to properly finance the project, according to Starkville Community Development Director Buddy Sanders.
The delay would push the project past its originally planned opening date in September, but wouldn't halt the project, he added.
"The project is still ongoing," Sanders said.
The $11 million, 62,000 square foot mixed used development—once built—will include a restaurant near the sporting goods store. The planned development is set to be built on Stark Road near Highway 12.
In January, Starkville aldermen approved a $1.5 million tax increment financing plan for the project. Aldermen increased their original sales tax pledge toward debt relief from 25 percent to 33 percent over the 15 year agreement.
Previous problems arose between development officials and the city after aldermen met in a December 2015 executive session meeting and offered the project the lower, 25 percent sales tax pledge.
The approved tax pledge also includes a 100 percent ad valorem property tax commitment. After the project is completed, the district's city real and personal property taxes would increase around $24,000 and increase about $55,000 annually for the county following construction, according to the TIF document.
The agreement estimates the project could generate $26 million in annual retail sales. At previous public hearings, residents and business owners questioned the sales estimate.
The city was informed of the developer delay last month, Sanders said.
Starkville planning officials approved site plans for the project, and environmental permits from the Mississippi Department of Environmental Quality were previously issued. Academy Sports officials would need to submit a final plat site plan to the city, for construction to begin.
"If they walked in right now with the final plat site plan, a building permit could be issued today," Sanders said.
Representatives from Multisite Properties and Academy Sports could not be reached for comment on Tuesday.