Mobile is poised to land a $22 million Topgolf entertainment complex that will bring in approximately 150 full- and part-time jobs, according to a project agreement that is expected to be voted in the next two weeks.
The project will include 60 hitting bays housed in a multi-story building on 9-1/2 acres where a multiplex cinema was long located at the McGowin Park shopping center off Interstate 65 and Government Street.
The Mobile County Commission and City Council will each provide $1.25 million in direct economic subsidies to support the Dallas-based company’s “capital expenses incurred in leasing, developing, constructing and equipping the project,” according to the 18-page agreement.
“I think this is an exciting project,” Mobile County Commissioner Connie Hudson said. “I think our citizens are excited about it.”
The commission is scheduled to vote on its portion of the incentive package during its meeting on Monday. A representative from Topgolf is also expected to be at the meeting to provide an overview of the project.
The city council will then meet on Tuesday to discuss its portion of the agreement. A council vote will then take place during its August 30 meeting.
The trendy entertainment venues are considered economic draws wherever they locate because they feature a popular golf driving range game with electronically tracked golf balls and automatically scored drives.
Each facility has multiple levels and includes climate-controlled hitting bays and restaurants with chef-inspired menus and hand-crafted cocktails, meeting spaces and more.
“Topgolf is a very attractive activity that has taken the country by storm over the past five years,” said Councilman Ben Reynolds, whose council district includes McGowin Park. “When we talk tourism, and bringing people to an area and to enjoy a good time, Topgolf brings the people in.”
Mobile County Commissioner Randell Dueitt said he believes the Topgolf project could be one of the biggest tourist attractions to come to Mobile during his lifetime, or over the past 50 years.
“We are excited to be at this point where we are today,” he said.
Agreement particulars
The agreement also includes several provisions that the project’s developers – listed as AL Mobile Satchel LLC, and South Carolina-based RealityLink LLC – has to meet with the Topgolf attraction.
Highlights included
- The employment number of 150 jobs has to be reached no later than June 30, 2024. Dueitt said he anticipates the project being completed sometime in 2023. Construction could begin by October.
- According to the contract, if operations do not begin by June 30, 2024, then $250,000 will be paid to each the county and the city no later than July 31, 2024. Additional $250,000 fees will be owed to each the city and county for each year after that until 2028, if the project is not completed and opened.
- Fifty percent of newly hired employees after Topgolf opens are to be “local residents” with the exception of “certain back-office operations that require relocation of personnel,” according to the agreement.
- There will be “good-faith” consideration to use county-based contractors and vendors and county and city residents to provide products and services in constructing, equipping and operating Topgolf, the agreement states.
- The selection of vendors providing products and services for the Topgolf is at the “sole discretion” of the developer. But the developer “acknowledges and agrees” to provide “equal access” to minority-owned and/or disadvantaged business entities on the project.
The Mobile agreement does not provide specific figures for the number of minority- and women-owned firms that should be working on the project.
In Birmingham, a $1.5 million incentive package was rejected a few years ago after developers failed to meet the city’s requirements for meeting a goal of 30% participation by minority- and women-women firms in the construction of its complex east of the Birmingham-Jefferson County Convention Center.
The goal, established by the Birmingham City Council, was not close to being met. An estimated 3.52% of the construction costs were spent with minority firms, or 2.5% of the total project costs.
Birmingham and Huntsville are the only two Alabama cities with a Topgolf facility. Both opened in late 2017. There are approximately 70 of them nationwide, with about eight more opening before the end of this year.
Topgolf, founded in 2000, was purchased by Callaway Golf last year. The company has benefited from the acquisition, according to media reports, and reported record revenues during the second quarter of this year.
‘Regional pull’
Reynolds said the Mobile location will be a “regional pull” along Interstate 10, noting that it will attract people from Pensacola, Florida, and coastal Mississippi.
“We’ll be the closest Topgolf for those folks and the location is a good one for exposure,” Reynolds said.
He also said that Topgolf’s location will be boosted by its proximity to the evolving Mobile County Soccer Complex, and a future aquatic center. In addition, the property is next to popular shopping venues like Costco and Field and Stream.
“It’s in an area that will draw a lot of sports tourism and people from the community,” said Hudson, the county commissioner who has been instrumental in overseeing the soccer complex. “If the other Topgolf facilities are any indication, we’ll see some very good results.”
Also not far is Hank Aaron Stadium, which has been shuttered since earlier this year. But there is interest, according to Reynolds and others, in redeveloping the stadium property.
“If it becomes a facility to attract sports activities, that would tie in as well (with Topgolf),” Reynolds said. “It shows everyone in the region that Mobile has the ability to bring families here and keep them entertained.”
Danny Corte, executive director of the Mobile Sports Authority, said he believes Topgolf can trigger additional investment in the area related to sports.
“Topgolf really needs to be the first domino to fall in that area along with the (soccer complex),” he said. “The location is perfect where it is at the intersection of two major interstates and very visible.”