Birmingham, Alabama, Shipt — Shipt is a big part of Birmingham’s startup scene. Photo via Shipt

Yesterday the Birmingham City Council approved $1.7 million in incentives for Shipt to expand its headquarters in Birmingham.

The grocery delivery service, which was acquired for $550 million by Target last year, is requesting up to $1.762 million from the city for reimbursement of costs associated with attracting talent.

Shipt will earn up to $1.76 million in incentives over five years, which comes out to $2,000 for each job Shipt creates.

The average salary of those jobs is expected to be $50,000 a year.

The Details

According to documents from the city’s Joint Budget and Finance Committee, Shipt is seeking incentives from the city of Birmingham and Jefferson County to grow and maintain its headquarters in the Magic City. They’re currently in the John Hand Building.

Birmingham, Shipt, Target, same-day delivery, shopping — Incentives include attracting talent in “tough-to-recruit” occupations. Photo via Shipt

Along with the incentives, the council also approved the city to sell the a parking deck in the John Hand Building to a Shipt subsidiary for $1 million. Proceeds from the sale will be used to establish a fund to improve infrastructure and do weed abatement in the city.

Jefferson County, Too

On July 12 Jefferson County plans to consider $720,000 in incentives to keep Shipt’s headquarters here.

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.”

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.”