For years the topic of Publix coming to Alex city has been discussed here on these pages. Plenty of speculation and conjecture with rumores flying about them coming and not coming and the reasons why. Now actual city officials are discussing it publicly and nobody here utters a peep. Two current articles in the Outlook show how disfunctional the City has actually been for years.
When it was first announced that the new school was going at the corner of 280 and 63 I was flabbergasted. That is the most prominent corner in the county and prime for retail development, yet our "leaders" dicide to put a school there, at the busiest intersection in the county. It made no sense, but was typical for AC. The plan was in place and funding secured and the new school was a go. Until last week when suddenly it was announced the new school had been put on hold.
This week it announced that a developer with close ties to Publix wants to come to that intersection. Go figure. Speculation was that they were going to the other side of 63 which made no sense because of very limited 280 access on that side. Then in todays Outlook council president Buffy Colvin comes clean. This developer has been trying to get the property for 5 years and from the tone of the article it sounds like the council has fought them every step of the way.
Everyone should go to the Outlook and read the two articles that are up and read it for yourself. It is just disgusting to me that the City has not pushed this through. There is NO capital outlay for the city, only reduction in sales tax for them up to 7.5 million. SOP for recruting new business/industry. I belive the new Mayor had a big hand in getting this out and in the works. The old status quo would have never pushed this and just let the new school be built there instead of over near the sportplex where it should logically go IMO. Anywhere but the prime retail location of 63 and 280.
Woody Baird said in an article that the Publix developer was asking for incentives that didn't benefit the City. I can't imagine what they were asking for that would even approach the deal for the new City Town Hall. I know the Chamber of Commerce has been trying to get the Publix here, and with it, other businesses that would benefit the City. I hope they aren't being short sited and will realize the long term benefits. Publix is a good company - employee owned and with a fantastic training program. It would be an asset to Alex City. People are pretty irritated to see Sylacauga get new businesses.
I know you aren't on FB, but this has been discussed at length on LM FB pages. BTW, no one can actually read the Outlook articles unless they are a subscriber.
New development possibly coming to Alexander City: Publix is a common tenant among the developer’s other properties and brought the grocer to city leaders in the past
Cliff Williams / The Outlook The lot on the southwest corner of the intersection of U.S. Highway 280 and Highway 63 is the subject incentives for development at a Tuesday Alexander City City Council meeting.
The Alexander City City Council is set to approve up to $7.5 million in incentives with no cash outlay by the city for a retail and commercial development at a special called meeting June 1.
Alex City Development LLC is proposing a new grocery-anchored shopping center at the intersection of U.S. Highway 280 and Highway 63.
The retail lot on the corner of Highway 280 and 63. [Photo/ Jake Arthur]
“The retail center will consist of a grocery store of approximately 47,000 square feet, two ancillary shops buildings consisting of 11,500 square feet and a freestanding building of 5,000 square feet,” the developer said in a release. “The retail center will also have six free standing stores along Hwy 280 and Hwy 63.”
A legal advertisement taken out in The Weekend Outlook by Alexander City gives notice of the June 1 meeting with a hearing and resolution authorizing a project agreement between the city and Alex City Development LLC. The legal advertisement also lists affiliates in the project as RE Venture Investments LLC of Birmingham and JWA Ventures II LLC of Montgomery are listed as affiliates of Alex City Development.
The Alabama Secretary of State lists the registered agent for JWA Ventures II as James W. Wilson III. Wilson is chairman of the board and CEO of Jim Wilson & Associates (JWA) of Montgomery who is tied to most of the development in Eastchase in east Montgomery. Several executives listed on its websites have been seen in several of the executive sessions the city council has held in the last few months.
On its website JWA has listed Publix as an anchor store in two of its more recent developments, 2020 in Macon, Georgia and earlier this year in McDonough, Georgia. Both developments have listed other stores and restaurants including Great Clips, Cake n Shake and Graffiti’s Pizza.
City officials, officials with the Alexander City Chamber of Commerce and with Alex City Development would not announce any of the stores coming to the development set to start construction at the beginning of 2022 with an anticipated opening of the second quarter of 2023.
“Due to confidentiality agreements, the names of the retailers cannot be revealed at this time,” Evan Conder of Alex City Development said. “However, we look forward to a formal announcement in the future.”
A future phase of the development calls for a 22,000 square foot junior anchor store.
Cliff Williams / The Outlook The lot on the southwest corner of the intersection of U.S. Highway 280 and Highway 63 is the subject of discussion for incentives for development at a Tuesday Alexander City City Council meeting.
The notice says the agreement will have the city pay up to $7.5 million over 10-years to cover the cost of site work, drainage, utility including sanitary sewer and various other infrastructure improvements necessary for the development with funds coming from future sales tax collected at the development. The development is listed to be along a major business corridor on about 30 acres of land.
“The development will cost approximately $25 million dollars,” Conder said. “An economic incentive in the form of a share of sales tax generated by the development excluding sales tax going to the schools, roads and the Charles E. Bailey Sportplex is necessary to fund the extraneous site costs and to attract multiple retailers to the market.”
The city council requested an incentive structure that posed no liability to the city, no out of pocket payment from the city, and a cap on the incentive.
“The developer will bear the financial risk of constructing and leasing the project in exchange for a sales tax share of the general sales tax excluding sales tax going to the schools, roads and Sportplex over a ten-year period.”
A 10% sales tax is collected in Alexander City. The State of Alabama gets 4% and Tallapoosa County collects 2% for education. Alexander City collects 4% with 2.75% going to the general fund and 1.25% is earmarked, .25% to education, .5% to roads and .5% to the Sportplex. The sales tax rebate for the project only applies to the 2.75% pointed at the city’s general fund and collected from future sales at the development.
The City of Chelsea gave developers $6.9 million in incentives to develop a 51-acre site with Publix as its anchor that opened last year.
Alex City Development said the project will benefit the area for years to come.
“This exciting new development will employ several hundred individuals,” Conder said. “The development will produce millions of dollars in sales tax revenue, a direct benefit not only for the city, but for the school system, roads, and Sportplex. The development will also yield hundreds of thousands of dollars in ad-valorem taxes, fees and electric power revenue for the city.”
Using sales tax from a future development to pay for incentives of the development is not new to the Alexander City City Council. In November 2020 the council approved paying up to $20,000 per year to Scooter’s Coffee for five years from sales taxes collected at the location . In January the council approved paying up to $40,000 per year for five years to The Wharf Casual Seafood for a future restaurant.
Alexander City has courted Publix for several years. In 2019, Publix informed city leaders of the decision through developer JWA who is associated with the current negotiations
Cliff Williams / The Outlook The Alexander City City Council met for a work session two weeks ago. It entered into an executive session during the meeting to discuss an economic development issue.
Developers have been coming to the Alexander City City Council for years regarding a proposed grocery/retail development at the intersection of U.S. Highway 280 and Highway 63.
“The developer has dealt with eight city council members, three mayors, two memorandums of understanding and had numerous individual meetings with stakeholders,” Alexander City City Council president Buffy Colvin said. “The developer has also used their own time, effort, energy and money to get to this point. If anyone has bullied the council, it is not the developer. I’ve met about this project since 2017.”
Colvin was elected to the council in 2016 and reelected in 2020. Colvin said it was time to put the issue to a vote after years of talks in executive sessions.
“During my tenure on the council, we have taken at most two months on making a decision to not reappoint a person, yes less than a month to decide if someone will lose their job,” Colvin said. “With that being said we are still in a back-and-forth motion on what we should do with this proposal five years later. We have gone back and forth with this developer and each time they have always come back with what we have asked for. I made this decision so that we could move forward either with this developer or someone else.”
Colvin said Tuesday’s meeting will give the public a chance to voice their opinions on spending public funds before the council votes on the matter. The meeting is something required by law to expend public funds, in this case sales tax funds.
Colvin said the agreement does not put the city at risk.
“We will be voting on an agreement that the city will give the developer $7.5 million plus 5% a year in tax incentives for up to 10 years,” Colvin said. “If they reach that $7.5 milion in five years, then we are done. If they don’t reach that $7.5 million in 10 years, we are still done. Alexander City is not taking on any liability nor are we giving up any land in this deal. The risk that is being taken is on the developer, not on the city.”
Colvin said the mayor and council have different roles in governing the city while looking to improve the lives of citizens.
“The best way to sum up the roles of the mayor and council, is that the mayor is the chief executive officer of the city and is charged with the duty of supervision of the day to day affairs of the city under the policies authorized by the council,” Colvin said. “The council has authority over the finances and property of the municipality. The council authorizes contracts, establishes policies, passes ordinances, sets tax levels, determines what sorts of services the municipality will offer and has authority over all other legislative aspects of municipal government. As a city councilmember I work for the citizens of Alexander City.”
The Alexander City City Council will meet at 5 p.m. Tuesday to hear from citizens on the issue of retail development and vote on it afterwards.
Thanks for posting. I hope they get a good turnout for the counsil meeting. Technically, I don't live in Alex City, but I sure would like to see this happen.
Same here. I am proud of the two new Mayors is AC and D'ville. Even little Dadeville is showing signs of progress under our new Mayor. I can't vote in that one either, but I went by and told him what a great job I think he is doing. He is actively recruiting another Grocery store for us, but I expect the new Publix, assuming it is coming, will hamper those efforts somewhat. He has announced that a motel chain is actively looking to locate in D'ville starting with 60 rooms but plans to expan almost immediately. The Mayor is working to get the property they desire.
Maybe now that the AC council in not just a rubber stamp for Russell lands we can finaly see some progress.
Maybe someone should contact Washington DC and get the facts on housing in alexander city. The lunch programs in the school system. The number freebe recipients in this area. It will shead a new light on the area. Get this information directly from the Census Bureau in Washington. Not what you get in Alex city.
Maybe someone should contact Washington DC and get the facts on housing in alexander city. The lunch programs in the school system. The number freebe recipients in this area. It will shead a new light on the area. Get this information directly from the Census Bureau in Washington. Not what you get in Alex city.
Just looking at the data of the area one could probably see the problem Publix (my term…Pubix) sees with AC. Population in AC has dropped over 1,800 from 2010 to 2020, according to census, I believe. It also is the 9th poorest city, its size, in the state and 43d in total population. With a current population of 14,500, and a household income of $34,000 it probably looks more attractive to Dollar General.
Now I know I’m going to catch hell about this post, but you’ve got to put yourselves in Pubix’s shoes…. Personally, I never saw a good reason to pay 10 - 15% more than WallyWorld for the same item!!
When you consider the quality of what they sell. I'm very particular about the food I buy, and as it is, every week, I drive to Auburn and go to the Publix. If that isn't important to you, well Walmart won't be going anywhere.
The thing is this - AC has to improve their demographics to attract jobs and attract people with higher incomes that will increase it's tax base. Part of that has to do with creating an environment that will attract those kind of people and businesses. AC has finally woken to the fact that developing 280, which is the first impression of AC to those passing through, is going to be critical. Additioanally, they want to develop tourism on the lake - and to do that, they need to make the lake attractive to tourists. Hence, the new Golf Course and a future eye to developing a resort. This is $$$ to Alex City. Additionally the pandemic saw more people moving to the lake full time. People are retiring here. People who don't necessarily see Walmart as a shopping option. Don't forget that Catherine's Market has managed to survive, so there is a base of people who are willing to spend on food.
The development that might include Publix does not threaten WalMart. There are plenty of people that will continue to shop there. But think about this, Publix has a great customer relations training program. And that could feed into a career in the hospitality industry, which will be necessary if they are going to get the tourism.
Aren’t you closer to the Pubix in Monkeytown? Costco is there, too. I agree that Pubix does an excellent job of marketing to people who value appearances of high class, but I tend to look past that kind of marketing….my wife doesn’t!! My point is simple, AC may get a Pubix….but I understand marketing well enough to say, I doubt it.
We do not have a 12 month tourist attraction. For a area like ours to flourish we have to have a middle class base to support the things that are spoke on this forum. In order to have that middle class we have to have jobs. Jobs will not come here with as much economic assistance and dissabilities we have in the area.
Houne do you really thing that the new golc course will bring the type of "tourist" that will actually shoo anywhere in AC? The new course will be a millionaires playgorund that will do ABSOLUTELY NOTHING ro imporove tourism to the area, Tourism will come form provinding middle class and blue collar options. More compgrounds and recreational facillities are what is needed. Those folks will actually go to Walmart or Publix or even Dollar General to pick up supplies. The folks you are thinking will come here will shop online more thatn they will local. Willow Point is now about 80% absentee owner from what I hear and the golf course is woefully under used.
From the looks of things, many, many properties are now listed on AirB&B and VRBO as short term rentals. People that actually own and live on Lake Martin are frequently complaining about the noise and boat traffic and the partying. So if they want tourist nivanana that seems to be the way it will go.
I'm not a golfer, so I really can't say if a new upper eschelon golf course will make a difference. I could see that it might if it was tied in with a resort as part of a resort package. I don't know if they have actually considered who these tourists they want to get might be, but I suspect they are not looking for the blue collar crowd. I don't know if that is a miscalcuation or not. I think as more and more people are turned off by the beach as family friendly, I think those are the people that might be interested in the Lake.
I expressed quite a few opinions about the Thrift Store that is opening in the old Rite Aid building. By my casual count, this one makes 5 in Alex City. I have nothing against Thrift Stores or those who shop them, but i wonder how that meshes with the upscale vision for the lake. Someone pointed out that this particular chain has a store in Opelika, but Opelika has a lot of other shopping venues other than Thrift Stores. It seems to me that Alex City still hasn't figured out what it wants to be, but it sure knows it needs revenue since the infrastructure is falling apart and they need money for that. They don't like the deal that this new developer is offering because it puts AleX City finances on the spot. I think if they hired a good professional negotiator to deal with this developer to get a deal they can live with.
When looking at the big picture you have to look at the past city government admistraitions. Woody Baird did that in a big way when he pointed out the last 167 votes by the AC council were unanimous. Thats 6 people agreeing 167 times in a row. Go anywhere and round up six folks and try to get them to agree 167 times in a row. That is NOT a government doing the city's business, that is a rubber stamp committee. I don't think it takes much thought to figure out who they were rubber stamping for. Not to name names but its pretty obviuos it was Russell Lands. It wasn't very long at all after Woody won that they scaled back the Wicker Point "resort". It couldn't have been that they saw that things were going to change with the new administration and their rule was coming to an end, or at least a big pause.
How many thrift stores are appropriate for AC? I don't know what the exact count will be but I can tell you that the proper number of any business in any area is always the same, whatever the market will bear. Will the thrift stores stop a major development from coming to an area, not a chance. That would never factor in to a developors decision, only the economics of the area and the number of rooftops. Having so many parttimers hurts the area. Another factor that might thwart development is the city NOT being able to provide and audited set of city financials, a city CFO showing up for an audit empty handed not even knowing what to bring to an audit.
What they don't look for is a city that will take the most prime retail location in said city and decide to build a school on it.
AC Chamber of Commerce only promotes the old downtown (dying) part of AC. There should be another CoC for the rest of the town.
RL has owned the city government in the past. Hope the new mayor will remain independent. I am very skeptical of the AC annexation of RL’s lakefront 450 lots. Why should AC citizens pay for all roads, utilities, etc?? Just a promise that may never pay back.
Cliff Williams / The Outlook The lot on the southwest corner of the intersection of U.S. Highway 280 and Highway 63 is the subject of discussion for incentives for development at a Tuesday Alexander City City Council meeting.
One side says Alexander City is not at risk, the other says the city is at risk if a proposed incentive package is approved for a grocer/retail development at a special called Tuesday meeting.
JWA Ventures has proposed a grocer anchored development on approximately 30 acres at the intersection of U.S. Highway 280 and Highway 63. City council president Buffy Colvin and Alexander City Mayor Woody Baird agree the developer proposal will see $7.5 million plus 5% interest going to the developer over 10 years as part of a sales tax rebate. But the two leaders disagree on whether it's a good deal. Colvin has said it’s a great opportunity for Alexander City. Baird said the deal will burden the city and put possible future infrastructure projects in jeopardy.
Baird’s contention is the city shouldn’t be involved in a 5% loan structured agreement.
“The finance people are telling me it’s a bad deal,” Baird said. “When we go to the bond market for infrastructure, it will be viewed as bad debt.”
Baird said the loan would be through a local bank and would be a 10-year note. Baird said JWA Ventures currently only has one tenant lined up.
“The proposed tax revenue generated by the one tenant will be around $550,000 per year,” Baird said. “If six other retailers are opened on this site the potential tax revenue would be $940,000. These numbers come directly from JWA Ventures. (Under the current deal), the developer has no requirement to open more than one retailer. If only one retailer is opened the city will be required to make up the shortfall from $550,000 to $971,000 coming from our general fund (to cover the debt service.)”
The proposed agreement could also put further strain on the general fund through cannibalization. Baird said the total loss to the general fund through the difference in sales tax collected through the grocer and the cannibalization could cost the general fund between $700,000 and $800,000 per year during the term of the loan.
“No amount of business we acquire in the future during the debt period will make up the short fall to the general fund,” Baird said. “Our general fund cannot survive with this amount of loss.”
JWA Ventures’ Evan Conder could not be reached Friday for comment on the deal proposed by JWA Ventures.
Baird said the city could do up to a 50% share of the general fund sales tax collected at the development over a set period of time but without a loan putting the city at risk.
“The only counter presented to JWA Ventures was rejected outright because it did not give them the $7.5 million,” Baird said.
If Alexander City were caught up on its financial audits and went to the bond market it could expect to pay as little as 2% interest currently. Those audits are in process with hopes of completing by early fall. Those audits are crucial in financing infrastructure projects across the city including sewer.
The general fund has been supported the last few years with transfers from the utility funds putting the utilities in a cash strapped position needed work.
Auburn currently has two grocer/retail centers in operation with Publix as an anchor.
The first was opened on Ogletree Road. According to City of Auburn commercial development director Kevin Howard, no incentive package was given to developers to bring the first Publix to Auburn.
Publix at Hamilton Place is now surrounded by several other retailers, restaurants and a gas station. The area has seen growth and new development is underway next door.
The Publix development at Cary Creek at the intersection of College Street and East University Drive opened about 2014.
“The area has seen significant growth since, especially in housing,” Howard said.
The Cary Creek development has a bank, gas station, Wendy’s and other store fronts. The developer was given incentives under Auburn’s Commercial Development Incentive Program (CDIP) and were similar to incentives for a Publix project in downtown Auburn that is under way. The Auburn City Council approved upto $6 million in sales and use tax rebates and the downtown project has a total capital investment of $20.6 million for a 29,000 square foot development.
Howard said the incentive was slightly out of line with what incentives are for a similar sized project.
“We viewed it a little bit differently because it was wanted downtown,” Howard said. “We still treated it within our program.”
Howard said the CDIP helps insure incentives stay reasonably the same.
“We have a cap on how much sales tax to rebate, terms and length of agreement,” Howard said. “The packages are still negotiated to a point and ultimately approved by the city council.”
Baird said many of the financial advisors that have been in the executive session discussions on this project will be at Tuesday’s council meeting including new Alexander City finance director Romy Stamps to provide information to the council and to the public before the council votes.
“This council appointed our new finance director who strongly opposes this deal,” Baird said
Yes, amazing. I think the key word in talking about Auburn stores is "growth". Did the growth happen whether the retail was there or not, or did the retail bring the growth? I'm familiar with the Carey Creek location and the Publix development is not the only retail in the area. The vet I use is directly behind that shopping center, there are new subdivision all along 147, including a retirment housing community. I just hope that AC's financial director isn't being short sighted. And I hope that they will negotiate harder for a better deal.
I have confidence in Woody to do the right thing. There is a compromise to be had for sure. And whoever made the comment Publix not comig here because they went to Sylacauga doesn't have clue. They aren't competing markets. Both are quite capable of supporting another grocery store.
First, I am not pro or anti, although I do believe we would use a Publix if it were in Alex City. Winn Dixie is ok in Alex City, and Walmart is Walmart. We enjoy the Publix stores in Montgomery, even if they might be a penny or two more expensive than other places.
BTW, the reason I am asking you two is geographic and has absolutely nothing to do with politics.
Now to the question. I think both of your places are on the eastern shore of the lake, somewhere off AL 49. The times I have driven over that way from our shack in Parker Creek to eat at Niffers or go to the Marina at Stillwaters, it seemed to me that Dadeville is a pretty good hike from Alex City. Would folks living in your area make that drive if there were to be a Publix in Alex City, even if relatively close to the 280 bridge? Where do you go now if you have some maderate to heavy grocery shopping to do? Seriously, I am just curious.
I am not really off of Hwy 49. I am closer to 280 than 49 and MM is a little closer to 49 but still very conveinient to 280. We have a Renfore's in Dadeville that does a good job with the limited space they have. It was much better before the Piggly Wiggly closed and we had competition. I try to stay out of Walmart every chance I get and find Winn Dixie in AC to be very expensive and don't like shopping anywhere that i have to give permission to track me in order to get the sales prices they advertise.
I sometimes buy a lot of graceries in Renfroes and most of my meat comes from there. We go to Auburn to Sams for staple items and things we buy in bulk. Sometimes we buy meats from there if there is a good deal and then come home and vacuum seal it into portions and freeze it. Then we go to Publix on University Avenue and buy the rest.
So the answer is yes, we would go to Publix in AC to shop, but we go there a lot anyway. The Boss is still going there 5 days a week so they would get the bulk of our business. I am hopefull that our new mayor in Dadeville will land us a new chain grocery store so the question would become mute. Maybe the question is would folks in AC come to Dadeville to shop at Publix?
We routinely drive to Alex City to shop at the Winn Dixie and Wal Mart. For 100% sure we would make to drive to Alex City to go to Publix. But we would still do whatever shopping we could at Renfroe's for the usual stuff. Would love to have a Publix or Kroger in Alex City. We will rarely make the much longer drive to the Kroger in Opelika though we do sometimes stop there on the way in. My house is in Sandy Creek area.
Login
Home
New Post
Search
Grand Lake Topics Forum
Reply
