MONTGOMERY — The Food City development in Athens received another boost Monday with a $300,000 Community Development Block Grant, Gov. Kay Ivey announced.
The grant will help bring 100 new jobs and development to the city while also resulting in traffic and drainage improvements, according to a news release from the governor’s office.
“North Alabama, particularly the Athens area, is experiencing astonishing growth boosted in part by the huge development in Huntsville, but also because Limestone County, plain and simple, is a good place to live and work,” Ivey said. “I commend local leaders for embracing this growth and making the needed improvements to continue to make it a good place to live.”
The grant will be used to make road improvements at the intersection of West Elm Street (Alabama Highway 99) and Lucas Ferry Road, the release said. The improvements are required to facilitate construction of Food City and other retail businesses on a site adjacent to the intersection.
The construction of the 57,000-square-foot Food City grocery store is also expected to attract additional development in the northwest part of the city.
Ivey notified Mayor Ronnie Marks the grant had been approved. The city of Athens has pledged $322,207 in local funds for the project.
Ground was broken in August for the project.
The city plans to use CDBG funds to improve traffic access on West Elm Street and Lucas Ferry Road leading to the new Food City. The work will involve widening the roads and adding deceleration and turning lanes. Drainage improvements are also scheduled.
The Athens store, part of a $19.5 million private investment, will become the eighth Food City in Alabama. The Virginia-based grocer opened its first store in the state in 2021 in Albertville.
It will include a sit-down café, Asian wok, hearth and pizza ovens, fresh-rolled sushi, hand-cut meats and seafood, custom-cut produce, a pharmacy, fuel center, and a curated beer and wine selection.
The Athens project is expected to generate $23 million in annual taxable sales and will include infrastructure improvements in the area.
The grant is part of the state’s ongoing investment in economic development in the city. Ivey also announced two grants in October totaling $800,000 for the French Mill Crossing center at the U.S. 72 and Mooresville Road intersectionon the city’s east side.
The Alabama Department of Economic and Community Affairs administers the CDBG program in Alabama.
“This project is expected to be the catalyst for future growth and jobs in that area of Athens,” ADECA Director Kenneth Boswell said. “ADECA joins Gov. Ivey in supporting this project.”
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