Development coming to central U.S. 31 corridor

During tonight's city council meeting, City Manager Jeff Downes announced the first step of a plan to kickstart development along U.S. 31. This step includes discussions with one of the largest commercial retail developers in nation.

During the meeting, the City Council authorized the sale of the former Vestavia Hills Public Library property, located at 1112 Montgomery Highway, to America's First Federal Credit Union for $950,000.

"This is well above the appraised value of the property," Downes said. "We believe this is the highest and best use of the property."

Following this decision, the council passed a resolution of preliminary approval for an incentive agreement for retail development. Downes has been in discussion with GBT Realty Corporation, one of the largest commercial retail developers in the nation, about bringing multiple retail tenants to the approximate 3.4 acres of property across from the former library building at 1099 Montgomery Highway. The site is currently occupied by the former Ruby Tuesday and Pizza Hut buildings.

 According to the $1.6 million incentive agreement, the city would be responsible for fixing infrastructure issues on the development site. Downes said the retail development would be well worth the investment, which would be offset by the sale of the former library property and the $500,000 the retail shopping center would generate in sales tax for the community.

"We are looking at retail that is significant, that does not take away from current businesses, and that is something new to Vestavia," Downes said. "This has been an effort by the city for years. We are going to do whatever it takes to get businesses here."

A final project agreement will be presented to the council at the end of May.