City, county to consider over $2 million in Shipt incentives

Birmingham, Alabama, Target, Shipt
Birmingham, Alabama, Target, Shipt
The City of Birmingham and Jefferson County are both considering incentive packages for Shipt, the Birmingham-based, grocery-deliver service recently purchased by Target.

The company also hinted at a another major announcement set for this week.

Shipt is looking for money for talent recruitment and more from the City of Birmingham and Jefferson County.

Birmingham, Shipt, Target, same-day delivery, shopping
Incentives include attracting talent in “tough-to-recruit” occupations. Photo via Shipt
The Details
  • On July 10 the Birmingham City Council plans to consider $1.762 million in incentives through the city’s new Talent Investment Program, Talent Acceleration Program and Talent Optimization Program.
  • On July 12 Jefferson County plans to consider $720,000 in incentives to keep Shipt’s headquarters here. They’re currently in the John Hand Building.

According to two legal notices recently published, the incentives would come in the form of monetary reimbursements.

Birmingham, Alabama, Shipt
Shipt employees, via Shipt

Here’ more from the legal notices:

“… on behalf of the City, of a Project Agreement (the ‘Agreement’) with Shipt, Inc., a Delaware corporation (the ‘Company’), under which the City will pay to the Company up to $1,762,000 through the City’s newly developed Talent Investment Program (TIP), Talent Acceleration Program (TAP), and Talent Optimization Program (TOP), as a reimbursement of costs incurred by the Company related to the attraction of talent in tough-to-recruit occupations and the development and promotion of full-time employees, in consideration of the Company maintaining and growing its headquarters in the City.”

Shipt
The Shipt headquarters in Birmingham, located in the John Hand building. Photo by Kara Kennedy for Bham Now

“…the County will pay to the Company an amount not to exceed $720,000, payable in three annual installments (capped at $188,000 for 2018, capped at $230,000 for 2019, and capped for 2020 at $720,000 less the aggregate amount paid to the Company for 2018 and 2019), in consideration of the Company maintaining and growing its headquarters in the County.”

Birmingham, Alabama, Data Blox, Shipt
Atlanta-based DC Blox scored $37 million that it’s using to build three new data centers across the Southeast, including Birmingham. Photo via Data Blox
Questions

What happens after 2020 with the County? What kind of positions is Shipt looking to fill? Oh, and this “major announcement”? Do you think it has anything to do with the data-center company DC Blox coming to Birmingham?