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Burgeoning Regional Economy Ensures Everyone a More Valuable Slice of the Pie

Envision Huntsville as an average size pie.

Standing at city center, look outward in all directions toward the far edges of the pie crust – north toward the state line where visitors from Tennessee get their first glimpse of the city. South where many Huntsville businesses draw daily commuters. East across the mountain, west from neighboring communities and all points in between.

For Huntsville and Madison city leaders, this vision of the pie’s edge does not represent boundaries but, instead, corridors of growth.

“That’s always been our vision for Huntsville’s future and the basis for our regional economic strategy,” said Huntsville Mayor Tommy Battle. “The first part of revitalizing your city is to take the center point, known as the living room of your city, and revitalize it to make it economically viable. Get one area going and stretch it out to other areas.

“Year after year, we have pinpointed growth corridors that help us grow both economically and residentially. The result is an economic revival like what you have been seeing in Huntsville and Madison the past 10 years.”

Private investment land developers have that vision too. During the 1990s, brothers Jim and John Hays and their nephew Jeff Enfinger of Enfinger Development opened a growth corridor to the southeast in Hampton Cove and the Hays Nature Preserve.

In 2000, that development led to the expansion of a residential growth corridor along Taylor Lane in Big Cove, and, by 2010, it had extended into the Goldsmith-Schiffman community.

Also during the 1990s, Huntsville opened a residential growth corridor off Zierdt Road in the Edgewater and Mountain Brook communities southwest of the city. In 2010, it expanded into the Williams community further south.

Battle said that by looking at the local economy like a pie, you will see their strategy unfolding.

“Instead of dividing the pie into fifteen different pieces that get smaller the more users you add, we made the whole pie bigger so we could divide it up differently with more restaurants, entertainment and activity venues, more places to spend retail dollars,” he said. “With a bigger pie, each slice is more valuable.”

The Western Corridor

The Town Madison development along I-565 between Zierdt Road and Wall-Triana Highway in Madison will open a gateway to the city.

Anchored by the new Rocket City Trash Pandas baseball stadium, the development is surrounded by residential, retail, commercial, and entertainment components that have thrown open a west side growth corridor that never existed.

“The location off I-565 is perfect catchment for a broad audience across the Southeast,” said Madison Mayor Paul Finley. “As the interchanges off the highway are completed, you can expect ease of traffic getting to and from the area.

“If people come for a game or event, we hope they stay and experience all that Madison has to offer, including our historic downtown that offers livability with local boutique shopping and dining.”

Finley also believes Madison’s central geography in North Alabama positions it perfectly to feel the positive impact from economic development in the whole state as well as southern Tennessee.

“Madison benefits from Huntsville’s growth with the FBI and other tech development workforce to our east, as well as from the Mazda-Toyota plant to our west. We look to collaborate with Limestone, Morgan and Marshall counties,” said Finley.

The development is envisioned to become a regional destination.

“Right on the interstate, convenient if you are coming from Cullman or Decatur, and where everybody who passes by can see it,” said Joey Ceci, president of The Breland Companies, which is developing Town Madison and the new Clift Farm project on U.S. 72 in Madison. “We are creating a regional destination with baseball, a food hall, and resort style hotels, similar to, but more diverse than Chattanooga.”

Open Southern Border

Recently, Enfinger and his uncles who are also developing McMullen Cove, announced the development of a multi-use Hays Farm development in South Huntsville that will replace the old Haysland Square and turn a 500-plus acre swath of undeveloped land into a new growth corridor to the south that will draw retailers and residents from Airport Road south to the river and beyond.

“There will be a commercial center all the way up to the Enfinger Building on South Parkway with a Village of Providence-type entertainment district surrounded by a city park, a ballfield, and 500-acre Hays Green with a passive walking park,” said Enfinger. “We’d like to maintain the natural green spaces. The Hays Nature Preserve in Hampton Cove has been a regional draw for a lot of people.”

In many ways, Ceci believes that with population growth and so many people commuting here to work every day from other counties, we already have an active regional economy at work.

“You see workers buying groceries, going out to eat and shopping during the workweek, even if they live outside the city,” he said. “I think there is some pent-up demand for some of the development that is occurring.”

Max Grelier, co-founder of RCP Companies who has developed the AC Hotel as part of CityCentre and developing MidCity on the old Madison Square Mall property, has been watching those employee migration patterns into Huntsville for more than a decade.

“We see the regional trade area as about 50 miles and incorporates the 14-county commuter hubs from which Redstone Arsenal and Cummings Research Park draw its employment,” said Grelier. “As a result, Huntsville has become the region’s primary center for healthcare, civic, cultural, shopping, and dining activity.”

Annexation of Morgan & Limestone counties

Add to all this, the annexation of a small portion of Morgan County to the southwest and a huge chunk of Limestone County due west of city center, and you can see the pie expanding!

“Yes, this annexation is a game-changer because it results in the ability to get infrastructure to certain areas and thus create major employment opportunities,” said Charlie Sealy of Sealy Realty. His company has developed several residential properties including The Belk Hudson Lofts and The Avenue in downtown Huntsville, and is building a sister community, The Avenue Madison. “These new jobs will be an economic driver for the economy and create an incredible multiplier effect.”

The annexation is a precursor to the economic development that follows it, said Grelier.

“Annexing was necessary for the economic development of the Mazda-Toyota plant and other larger manufacturers,” he said. “It’s also helpful in attracting investment into commercial real estate projects across the metro area.”

“We’ve only made a foray into Morgan County,” said Battle, “The annexation of Limestone County where Mazda Toyota made a $2 billion land investment has seriously expanded our metro and opened an industrial growth corridor that is a win-win for both parties.”

City funds, thanks to Huntsville’s AAA credit rating from the S&P and Moody’s Investment Services, have pulled their share of the weight. With the power to borrow $85 million for city and countywide projects, of that, Huntsville will allot $25 million for the Mazda Toyota project infrastructure; and another $55 million for capital plans and schools.

Northern Exposure

Included is the revitalization of North Memorial Parkway. Since widening the well-worn highway into a viable parkway traffic corridor, it has encroached on many properties there, making them less viable.

“They don’t have enough depth to sustain retail, so we’ve taken them out and we’re turning that area into a park with greenways and walking trails,” said Battle. “Perception becomes reality.

“Instead of seeing boarded-up buildings when you enter from the north, you see it more as an entryway into North Huntsville – an economically viable area to move into and to be a part of.”

Among the projects is the upgrading of parks that will be instrumental in bringing in sports teams from all over the Southeast, including recreational rugby fields and soccer fields that can also be used for lacrosse.

“We are putting money into the tennis center and into the golf course, which now has cross-country running and mountain bike trails. All of these things tie back to what we call ‘quality of life’ for our residents and activities for our guests,” said Battle. “Travel sports bring people and their families to our area from all over, where they compete, stay in hotels, eat in restaurants, and shop in our stores.”

Quality of Life

Town Madison’s $12 million Pro Player Park project with 12 synthetic baseball/softball fields, the $22 million Huntsville Aquatic Center, and the expanding Huntsville Tennis Center are already national attractions for travel sports competitions and events.

“To have a viable and growing economy, we have to offer a ‘quality-of-life’ that attracts people to the area, and quite frankly, we have a lot of jobs on the table too,” Battle said. “To recruit highly-skilled, higher income workers requires a quality of life that is equal to or higher than where they are moving from.”

Battle said “quality-of-life” is found in Lowe Mill, in craft beer, in a vast array of recreation facilities, disc golf, pickleball, art museums and public parks.

“But we still have work to do because people are coming from around the world to work for companies like Blue Origin, Facebook, Aerojet Rocketdyne, and Mazda Toyotas,” said Battle.

Finley is ready for whatever challenges lay ahead for Madison.

“As Madison grows our focus is making sure we are responsible with our citizen’s tax dollars by improving infrastructure and providing a good quality of life in every district of our community,” said Finley. “While areas to the West are experiencing booming growth and increased traffic, we need to not only keep pace with growth but foresee areas that will need improvements down the line.”

Huntsville is also adding hotels, apartments, and homesites as more people move into the city. With a goal of adding 1,000 hotel rooms within walking distance of the Von Braun Center, Battle said it will help draw larger conventions and business meetings.

“Part of the strategy for building smaller hotels instead of one big convention center hotel is to prevent people from living inside the hotel the whole time they are here,” said the mayor. “We want people to experience our city, eat in our restaurants, visit our museums, and shop in our stores.”

Enfinger believes that as we become a more affluent society, people’s wants, and expectations become more demanding.

“It looks like we are evolving in unison with the rest of the country as far as the type shopping we do and the kind of developments we build,” said Enfinger. “Our growth rate is higher than most cities, but I think we follow a national trend in the type developments we can sustain.”

Private Investment is Leading the Way

Private investment must still lead the way and developers such as Breland, RCP, Sealy, and Enfinger are leading the charge.

“When the City can support infrastructure needs or improvements, private investment can take those dollars further,” said Mayor Finley. “This is a win/win for both the City and for the investors. Ultimately, our citizens also reap the benefits of this growth and development.”

“Buy-in is good so far, but much harder than it may seem,” said Grelier. “Huntsville has a great story to tell, but many larger institutional investors are not aware of it or view the market as too small.

“Our team spends most of our time discussing and selling the regional market rather than the immediate project. A big part of Huntsville’s growth moving forward will be how the region is branded to compete for private investment and workforce internationally. It’s a regional story that should include our sister communities.”

He would also like to see the Gen Y & Z workforce move to the area because it’s a cool, fun place to live, and then find a job once they get here rather than moving here for the great job.

“Once this trend reverses, larger private investment and more economic development will follow quickly,” Grelier said.

From the city’s perspective though, Huntsville’s first mixed-use/multi-purpose development at Twickenham Square in 2014 has been a driver in enlarging the pie.

Join us for Part 2 of our series on Huntsville’s growing regional economy in the September issue of the Huntsville Business Journal as we investigate how multi-purpose/mixed-use developments are helping build Huntsville’s regional economy.

 

Hays Farm Development: ‘It’s Time; the Community Needs It’

Six to 10 years, that’s how long the Hays family expects the 850-acre, multifaceted development of Hays Farm to take.

Jim Hays, John Hays and Jeff Enfinger, the owners of the property, were on hand Thursday night to highlight the details of the project to a packed house in the Martha deFord Hays Auditorium at Grissom High School.

“For 49 years we’ve been developing communities for people in North Alabama, this is the first time we’ve ever put our name on one,” John Hays said.

John Hays talks about the importance
of the Hays Farm Development.

The development will eventually consist of about 1,000 residential units, three parks and see of new commercial spaces along with the redevelopment of Haysland Square, according to Enfinger.

The first part of the commercial aspect of the development is to raze Haysland Square and develop 175,000 to 200,000 square feet of new commercial space.

“It’s under contract now with a Florida developer who has developed here and we hope to have an announcement this Fall where that center would be redone next year and it would be upscale, walkable and pretty,” Enfinger said.

Enfinger added that they were working with Staples, the only retail store left in the current development.

“We’re providing space for Staples,” Enfinger said. “We have to cut a deal and they have to agree to it, but we’re going to make every effort to keep Staples.”

Jeff Enfinger gives an overview of the master plan for the Hays Farm development

It is expected to take five years before developers get back to the center housing Home Depot and a development north of Mike’s Merchandise, according to Enfinger.

“We’ve got three opportunities to develop and redevelop the high-volume, high-traffic commercial areas,” he said.

The first 500 units of residential development will consist of single-family detached units such as estate homes, patio homes and traditional housing sizes, which will span the $300,000 to $700,000 price points, according to Enfinger. Some of those are being developed now.

The next 500 units will consist of condominiums, townhouses, some lofts over the new retail establishments and possibly some age-restricted housing, according to Enfinger.

“The 1,000 units we’re going to build doesn’t do much for the commercial activity except create sort of a foundation,” Enfinger said. “The commercial activity is part of all of south Huntsville.

“So, if south Huntsville doesn’t become part of the commercial activity then it won’t be as successful.”

The development will have three parks: a 500-acre natural park, similar to the Hays Nature Preserve; a new ballpark with soccer and baseball/softball fields; and a city park, like Big Spring Park in downtown Huntsville.

“We have a park system that I believe will be unrivaled by any park system that I know of in my lifetime,” Enfinger said.

There are also plans to have an entertainment district set up in the new development, possibly around the city park, but Enfinger said most of the specifics were still yet to be determined.

“It was really a difficult decision for the family to decide to let the farm go,” Jim Hays said.

“…But, it’s time. The community needs it; so it was time.”

Jim Hays talks about the history behind the land
that will be used as greenspaces in the Hays Farm Development.

Hays Farm Presentation Set for Thursday

The South Huntsville Business Association will host a community presentation of the Hays Farm revitalization project Thursday in the Grissom High School auditorium. It will start at 6 p.m.  

Jim and John Hays, along with Jeff Enfinger of The Enfinger Cos., are developing the 850-acre generational Hays Farm into a multi-use project with 110 acres of commercial development including retail stores and restaurants; 200 acres of residential area with about 1,000 single-family and multifamily homes; and a 12-acre city park with a potential entertainment component, sports fields and a dog park.

The remaining 540 acres will remain protected land with 6½ miles of walking trails and a nature preserve.

The economic boost to Huntsville is projected to be $450 million.

Representatives from the city, the Hayses, Enfinger Cos., and SHBA will be available for questions.