A $242 million multi-use development could begin site prep this summer in Alabaster.

Alumni Properties & Parkes Development Group will soon begin work on District 31, to be located at the northwest quadrant of U.S. 31 and Interstate 65.

The project will bring roughly 600,000 square feet of new retail, restaurant, and hotel space to Alabaster, as well as hundreds of jobs, according to the city.

The city estimates District 31 will generate an estimated $2.8 million per year in new city sales taxes, and an estimated $1.4 million in new school sales revenue. Building construction could begin as early as next year.

Alumni Properties Managing Partner and CEO Keith Owens said the project has been eight years in the making.

“Alabaster has long been considered ‘home base’ for our team and a target area for one of our destination retail centers. District 31 will launch a new vision for Exit 238 and be a long-term asset to the community for years to come,” Owens said.

According to the city, the project will bring about 75 new businesses to the city, including seven new-to-market national and regional anchor stores and three projected national brand-name sit-down full-service/fast-casual restaurants. Between 15 to 20 service and boutique style shops are planned, as well as 10 to 12 fast-casual restaurants.

There will also be room for a hotel with 10 to 12 retail spaces, and five to 15 office suites. Another 14 spaces could accommodate restaurants and service-oriented shops.

On Monday, the Alabaster City Council voted to approve an $84.85 million incentives package for the development, which includes sales, property, and construction tax rebates over 30 years based on the project’s performance, and only applies to a portion of new tax proceeds created by the development, according to the city.

Alabaster Mayor Scott Brakefield said the development will bring many retailers and restaurants that residents have been requesting for years.

“We’re so excited to see the highly anticipated District 31 development coming to fruition. This will further cement Alabaster’s status as a regional shopping destination while generating millions in additional tax revenue to support Alabaster schools, infrastructure and public services,” Brakefield said in a statement.

As part of the agreement, the developer will make roadway improvements to U.S. 31 and Ninth Avenue Southeast, at one of the development’s entrances.