ATHENS — In the civic version of “keeping up with the Joneses” – in this case, Huntsville, Madison and Decatur – the Athens City Council approved plans for a shopping center near I-65 and U.S. 72.
“We’ve got a lot of work to do, the infrastructure work. But it’s an exciting time,” Athens Mayor Ronnie Marks said. “And we’re growing along with the whole North Alabama area, and the city of Huntsville, and Madison, and Decatur and others.”
Just a couple hours after Gov. Kay Ivey announced the award of a Community Development Block Grant to aid infrastructure at the new Food City site on the west side of Athens, the City Council voted Monday night for a development agreement with NRE Swan Creek for a shopping center on the city’s east side, at the southern end of Braly Boulevard near I-65 and U.S. 72.
The agreement includes an anticipated investment of $34 million, the creation of jobs and the generation of annual taxable sales of approximately $30 million.
According to the city, Hobby Lobby is one of the stores that would locate in the center, with the possibility of Academy Sports and Outdoors, HomeGoods, Burlington, Books-A-Million and PetSmart.
As part of the agreement, the city will work with the state Department of Transportation on road improvements along Braly Boulevard, U.S. 72, I-65, Cool Springs Drive and Audubon Lane.
The city also plans to seek economic development-related grant funding from the Alabama Department of Economic and Community Affairs to help support those improvements.
In addition, the City Council approved to pay in arrears 100% of the proceeds from the city’s sales taxes that the development generates, net certain costs, for a period of 12 years or until $7.4 million is paid, whichever comes first.
The city said the development addresses retail needs in its 2040 Comprehensive Plan, which detailed millions of dollars in lost revenue opportunities to Madison County.
“Our general fund relies on sales tax to fund police officers, firefighters, paving, sanitation, parks and recreation and other services,” Marks said. “Sales tax makes up more than 40% of our General Fund revenue. The city looks at its return on investment for incentives and infrastructure improvements.
“We need these name brand stores that draw people off the interstate and encourage our own citizens to shop local, and we also need the mom-and-pop stores that provide unique shopping and dining experiences for citizens and visitors.”
Recently, the City Council allocated $100,000 to Athens Main Street to oversee a grant program for downtown merchants. That process is underway.
“I’ve also talked to a downtown property owner about an exciting opportunity to expand on the Square to provide a unique experience, and hopefully I can present an economic development request to the Athens City Council about this in the near future,” Marks said. “My office works with Planning and other departments as needed to review retail project requests and present opportunities to the City Council.
“These range from as large as Buc-ee’s to downtown-oriented projects like Salty Cod.”
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