ATHENS — A retail development with Publix supermarket as the anchor is coming to the east side of Athens.
The economic development project, announced today by the City Council, is a response to the city losing retail business and sales tax revenue to surrounding municipalities.
According to its 2040 Comprehensive Plan, the city experiences significant “grocery store sales leakage” to surrounding municipalities and “such leakage is exacerbated in the eastern area.”
Publix and other retailers plan to locate at the southeast corner of U.S. 72 and Mooresville Road, according to the city.
The project will allow Athens to create a commercial hub within the city.
“This development and the recent announcement of Food City locating in western Athens will help fill gaps and address the loss of sales tax dollars to other cities,” Mayor Ronnie Marks said.
This will be the third Publix in Athens. Marks said a developer approached Athens about 18 months ago because the retailer wanted to open a location in the eastern part of the city.
The Publix development will create approximately 115 jobs and generate annual sales of approximately $22 million, the city said. Athens will pay in arrears the sales tax generated, minus certain costs, for 10 years or until it reimburses the company $5.6 million – whichever comes first.
As part of the project, Athens will seek Community Development Block Grant and Appalachian Regional Commission grant funds through ADECA to help pay for right-of-way improvements on Mooresville Road and U.S. 72.
In addition, the development will include internal roadways that will be dedicated to Athens. The city will allocate $1 million toward the internal roadways upon their completion.
Councilwoman Dana Henry said the improvements on U.S. 72, as a result of the project, are needed, and said a car wreck occurred in that area this morning.
Council President James Lucas agreed and said the project will benefit Athens through road improvements and keeping sales taxes in the city.
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