City Council amends and reapproves $325M downtown development project
Finance and expensive developments were once again on the docket during the Huntsville City Council’s regularly scheduled meeting last Thursday.
On November 9, the Council heard a cash investment update from Finance Director Penny Smith and approved amendments to the $325 million dollar mixed-use development on the site of the former Coca Cola bottling plant.
Finance Department Update
Smith explained during the regularly scheduled meeting that the Finance Department’s policies need updating.
As per the current guiding principles, the Finance Department is responsible for investing and overseeing Huntsville’s cash and liquidity function, generally assuring security with sufficient liquidity to meet the city’s daily cash flow demand and return on investments. Smith elaborated that the state has a short list of what type of investments finance departments are allowed to make and that she does not recommend any investment that she does not adequately understand.
A recent investment included four banks spread throughout CDs, treasuries, and money market instruments. Each of these investments will mature at different points over the next two years, but will all yield above 5%.
Downtown development sees reapproval
City council reapproved the construction of a 13-acre mixed-use development at the former Coca Cola bottling site at 514 Clinton Street in the core of the central business district located just north of the Von Braun Center. The Council discussed amendments pertaining to construction phases and new language for collateral assignment provision.
The project, currently named Front Row Huntsville, is based on a partnership between the city of Huntsville and New York City-based Rocket Development Partners LLC.
The development plan was amended to be completed in two phases rather than the originally agreed upon four. Following cleanup in December, phase one will begin in January 2024 with the construction of two buildings containing 500 residential units, 36,000 square feet of retail and restaurant space, a minimum of 35,000 square feet of class A office space, 565 parking spaces to accommodate the development, and a public plaza. Phase two of the development will include the construction of a conference-style hotel and parking garage.
The new collateral assignment provision language will also ensure that if the original developer is unable to complete the project, which is planned over the next eight years, the development will still continue as planned. Shane Davis, Director of Urban and Economic Development, explained the importance of the language change.
“We wanted to ensure on our behalf, for the taxpayers’ funds that will go into the roads and streetscape, that the project will get completed. Regardless whose name is on the title, the project moves forward naturally,” said Davis.
For more information, please visit www.huntsvilleal.gov/government/city-council.
