Photo by Jon Anderson
This vacant former Winn-Dixie property at 3925 Crosshaven Drive in the Cahaba Heights community in Vestavia Hills, Alabama, is under contract to be bought for development of a Walmart Neighborhood Market.
The Vestavia Hills City Council on Monday, June 15, is scheduled to consider tax rebates of up to $3 million for a new Walmart Neighborhood Market in Cahaba Heights.
The council also is scheduled to vote on the rezoning of 3.8 acres in Cahaba Heights for a new 19-home subdivision, as well as plans for a dropoff donation center and new dog grooming business in Cahaba Heights.
Walmart has a contract pending to purchase the closed Winn-Dixie grocery store in Cahaba Heights at 3925 Crosshaven Drive and is seeking a tax rebate from Vestavia Hills to redevelop the site for a Walmart Neighborhood Market, city records show.
Winn-Dixie closed its store in Cahaba Heights in May of last year, and the site has remained vacant since then.
Walmart has a plan to demolish the existing building and build a new 45,000-square-foot Walmart Neighborhood Market in its place, according to a summary of a proposed economic development incentive deal prepared by Vestavia Hills City Manager Jeff Downes.
Walmart is asking the Vestavia Hills City Council to provide the retailer a sales tax rebate of up to $3 million over 10 years to help make the project economically feasible.
The actual request is for a sales tax rebate of up to 46.875% of actual sales taxes paid over 10 years, not to exceed a total of $3 million. The new Walmart Neighborhood Market is expected to generate about $25 million in annual sales, which would provide the city with $11.1 million in sales tax revenue over 10 years. After the $3 million rebate is applied, which is projected to happen over 4½ years, the city would have a net gain of $8.1 million over 10 years, records show.
Walmart intends to invest at least $20 million into the property in land acquisition, demolition, construction and related site improvements to make the site operational as a Walmart Neighborhood Market, according to the summary report.
“The existing building and associated parking and drainage infrastructure are considered obsolete and unsuitable for Walmart’s development program, requiring complete demolition and substantial site redevelopment,” the summary says.
The proposed public incentive is needed to make the project economically feasible and support redevelopment of a currently vacant commercial property into a modern grocery destination, thereby avoiding the risk of prolonged vacancy or a less desirable adaptive reuse of the site, the summary says.
“The project is not expected to materially cannibalize existing grocery sales within the city, but rather serve unmet demand and strengthen the retail viability of the Cahaba Heights area,” the summary says.
The Winn-Dixie store that previously was there was the 10th largest source of sales tax revenues for the city of Vestavia Hills in 2024, according to the city’s 2024 audit.
Read more about the rezoning requests on Monday’s agenda here.
