Development planned for central U.S. 31 corridor
City Manager Jeff Downes has been hearing two words repeatedly since being hired by the city last July: economic development. He believes the best way to make that happen is to bring businesses into the heart of the city.
“Redevelopment of U.S. 31 is important for several reasons,” Downes said. “It is the primary retail and business corridor for Vestavia Hills. It has essentially been the downtown of the city for years, and tax revenue is reliant on its viability.”
After years of planning, Downes and the city are taking action. During a May council meeting, the city took two crucial steps forward as part of a plan to kick-start development along U.S. 31.
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. The site is approximately 22,000 square feet and located on an estimated 1.66 acres of property owned by the city. In 2011, the building was appraised at $825,000. Though it will not generate sales tax revenue, Downes said he thinks the sale of this property will lead to other profitable investments.
“The library property was donated to us,” Councilman Steve Ammons said. “By using the money from this sale wisely, it will be a huge benefit to the city.”
After that decision, the council passed a resolution of preliminary approval for a retail development incentive agreement. Downes said the city 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 approximately 3.4 acres located at 1099 Montgomery Highway.
“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.”
According to the $1.6 million incentive agreement, the city would be responsible for fixing infrastructure issues on the development site such as storm water drainage. Downes said the benefits of the retail shopping center would be well worth this investment, which would be offset by the sale of the former library property. Furthermore, he said the retail shopping center would help the entire community of Vestavia Hills by generating more than $500,000 in sales tax revenue.
“Once investment starts taking place, a sense of excitement is created,” Downes said. “This is going to lead to greater things not only along U.S. 31 but throughout Vestavia Hills. This is our chance to reinvent ourselves. This is our beginning.”
Mayor Butch Zaragoza echoed Downes’ words.
“We’ve been talking about this for years, now we are taking action,” Zaragoza said. “We believe this is the right thing for the city. We are not taking this lightly. Over the next five to six years, the face of Vestavia Hills is going to change.”
If finalized, a project agreement will be presented to the council by the end of May.