Emily Featherston
Opinions were mixed for both council members and citizens in the audience at Monday night's Vestavia Hills City Council meeting over whether or not the city should move forward with the purchase of what officials refer to as the Gold's Gym property.
For over two hours, the council heard presentations, statements, arguments and reasoning both for and against the purchase of the 5.5 acres property and 63,000 square foot building that sits next door to City Hall.
The discussion began with a presentation by City Manager Jeff Downes that he said was aimed at answering some of the repeated questions he has received from councilors as well as the community.
Downes explained elements of the Community Spaces Plan related to potentially converting the space into a community recreation center, and how the resolution on Monday night's agenda related to the possible execution of that plan.
The property and building are not currently for sale, and haven't been, Downes said, so the city has been working with Southpace Properties to discuss and negotiate a possible sale price the property owner, Store Capital, would consider.
The sale price proposed at the meeting was $9.1 million, with closing costs included, and would be subject to a tentative taxable financing rate of 2.95 percent as long as Gold's Gym is a tenant of the building, which is until at least 2021. At that time, Downes reiterated that the gym has the option to continue its lease, but would be subject to a rate increase he said he was not allowed to disclose publicly.
Gold's Gym occupies 53,000 square feet, with an annual rent rate of $540,000 until 2021. The other 10,000 square feet, which has an estimated market rentable value of $287,000, is currently unoccupied, after Brookwood Medical Center offices vacated the space in February.
Downes said the cost-benefit analysis for purchasing the property includes the quantifiable costs–such as purchase price and the ability to collect rent revenue–as well as the opportunity costs of foregoing the purchase at this time.
Store Capital, he said, has only agreed to continue considering selling the property at this price until May 31. Additionally, the vacancy of the 10,000 square foot office space would allow the city to determine use for the space, without having to wait-out the lease of another tenant.
Downes said that with the goal of the Community Spaces Plan being to create space for current and new programming, including the potential to someday turn the Gold's Gym building into a community center, the purchase was a unique chance to further that goal.
“Opportunity to secure real estate that’s crucial as a part of that plan … that’s fleeting,” he said.
Community Spaces Committee member David Myers and Director of Public Services Brian Davis presented the reasons behind the idea for eventually turning the property into community programming space, and Chamber of Commerce President Karen Odle explained how the chamber and city businesses could benefit from the future space as well.
Others, however, were not convinced the idea was a good one.
Ned Hunt, the general manager for the Colonnade location of Gold's Gym, said that the 3,000 members of the Vestavia Gold's Gym location would be negatively impacted eventually, even if the lease is guaranteed through 2021 and beyond.
Several members of Gold's Gym were in the audience, and expressed their desire to the exercise space continue to be available, rather than eliminating it. Some argued that the space already provides a service to the City of Vestavia Hills, and suggested that the council direct the funds toward upgrading the existing facilities.
Place 4 Councilor George Pierce, who said he is also a Gold's Gym member, said that it is his understanding that just because they make the purchase, doesn't guarantee anything, it simply provides the city with options.
“The intention is not to close Gold’s Gym down,” he said.
But it was the same lack of a fleshed-out Community Spaces Plan that Place 2 Councilor Kimberly Cook said gave her serious concerns and doubts about the purchase.
Cook said she has researched the issue a lot, and even so was not comfortable with the idea of the purchase, because she believes making the purchase decides elements of the Community Spaces Plan that have not been fully discussed.
“Once we make this purchase, we have made that decision … And I’m not really comfortable making that at this point,” she said.
Place 3 Councilor Paul Head said he recognizes that there are many variables and concerns, such as the timing of the purchase option and the proposed financing, but that in his mind the opportunity is too good to pass up.
“I don’t want to let this opportunity go by,” he said, because he said doesn't want to be looking back in 15 years and wishing the city had jumped at the chance.
Place 1 Councilor Rusty Weaver was not at the meeting due to a death in the family, so the final vote was three to one, with Cook voting against.
Other Council Business Included:
- A new trash collection and sanitation contract with Republic Services was approved.
- The council voted in favor of a resolution creating a part-time communications manager position, to be taken over by Cinnamon McCulley and servicing the needs of both City Hall and the Library in the Forest.
- Mayor Ashley Curry and the council proclaimed the city would recognize April as National Safe Digging Month.
- The council approved a liquor license for Your Pie in Liberty Park for retail beer and table wine.
- A motion to approve liquor license failed for Texas Taco, located at 633 Montgomery Highway, due to the concerns of Pierce and Head of business owners with a criminal record selling alcohol.
- The council approved an economic development agreement with Slice 280.
- The council approved an economic development agreements with Crosshaven 6 and Satterfields, which was discussed at a work session in January. Pierce urged developer Jamie Pursell to immediately rectify the current state of the property, which has remained in what he referred to as disarray after the houses were moved. After the vote, Downes thanked Pursell and others for their assistance and donated goods to provide landscaping for the Cahaba Heights marker at Dolly Ridge Road and U.S. 280.
