Alabama city approves $4.8 million deal for new Big Mike’s steakhouse location

Northport is officially bringing Big Mike’s Steakhouse to town. The City Council voted on Thursday to approve a $4.8 million development deal that will see the city construct a building for the popular restaurant chain.

The Approval Process

The vote was not without some tension. Councilman Turnley Smith attempted to table the motion, arguing that the public needed more time to review the details of the agreement. While his motion earned applause from the crowd, it died for lack of a second. Ultimately, Smith cast the lone dissenting vote against the agreement with Sucarnoochee Investments and developer Winship.

Despite his opposition, Smith noted that he supports the arrival of Big Mike’s as a potential economic catalyst. His primary issue centered on the timing of the rollout, noting he did not have adequate time to explain the project to his constituents.

Project Details

The proposed 6,720-square-foot restaurant is slated for the corner of Jemison Lane and Airport Road. Once operational, the location is projected to employ approximately 35 workers.

Under the city-backed model, Northport will own the building and lease it to the steakhouse for 20 years. Following that term, the business has an option to purchase the property for just $100. This incentive structure is modeled after a similar agreement currently in place in Millbrook.

Financial Breakdown

The city has capped its investment at $4.8 million. To recover the costs, the agreement stipulates that 5% of monthly gross revenues, along with two-thirds of the city sales tax collected at the restaurant, will go toward repayment. Additionally, a cooperative district will be formed to impose a 2% user fee on all sales until the debt is satisfied.

Annual revenue for the restaurant is currently estimated at $4.8 million. If the new location performs like its counterparts in cities like Thomasville, Andalusia, Orange Beach, Moundville, Auburn, and Guntersville, it will become another notable addition to the state's restaurant scene.

Local Context

The steakhouse deal follows recent debates in Northport regarding high-profile developments. Residents have previously expressed skepticism over large-scale projects, including the 11.73-acre University Beach, which proposed a waterpark and resort amenities off U.S. 82. While speakers at this week’s meeting voiced their appreciation for Big Mike’s food, they remained focused on ensuring that city-backed expenditures remain in the best interest of Northport taxpayers.