Topgolf is at risk of losing $1.5 million in financial incentives it received from the city of Birmingham to build a 65,000-square-foot facility near the Birmingham-Jefferson Convention Complex downtown.

City officials say Topgolf has failed to comply with terms of the project agreement by not hiring minority-owned contractors and subcontractors.

In a letter to Topgolf dated June 16, Birmingham Mayor William Bell said the entertainment company hasn't provided any reports to the Birmingham Construction Industry Authority on the hiring of minority contractors.

Topgolf also hasn't provided information that would have allowed BCIA to help minority and disadvantaged business subcontractors with the preparation of bids for the project, the letter states.

Topgolf agreed that at least 25 percent of their contractors/subcontractors working on the Birmingham construction would be minority-owned, city leaders said.

Topgolf was given 30 days upon receipt of the letter to comply with the requirements of the agreement.

"In the event that Topgolf fails to cure the default, the city will be forced to exercise its remedies under the agreement, including termination of the agreement," the letter states.

Topgolf has yet to respond to the letter, according to the city.

In a statement to AL.com, Topgolf spokesperson Morgan Wallace said: "We are working closely with the city regarding this matter. We cannot wait to open up in Birmingham."

The Birmingham City Council approved the financial incentives in November.

Under the agreement, the incentives would be paid in annual installments, not to exceed $228,000, for the next eight years. Each payment is equal to 30 percent of the sales tax revenue generated to the city by the project.

The entertainment complex is under construction on BJCC-owned property at 24th Street North and 12th Avenue North. It is expected to be open by the end of the year.

The high-tech driving range will feature a full-service bar/restaurant, a 2,900-square-foot corporate and event meeting space and lobby.

The Topgolf entertainment complex is anticipated to create an economic impact of $264.5 million over 10 years to the Birmingham economy.