Skip to main content

THE CITY OF PELL — Pell City Council has approved another step in the development of a new shopping center in the city.

At its regular meeting on Monday, the board approved an assignment agreement between Noon Pell City, LLC and Noon Pell City Center, LLC for the former hospital site on Dr. John Haynes Drive. The resolution approving the deal was added to council’s agenda after an executive session, which city attorney Jon Rea said involved potential real estate issues.

The board approved a development agreement with Noon Pell City, LLC for the company to bring an eight-store mall to the city in December. As part of the agreement, the city will provide the development with a 2% tax refund for up to 20 years or until the refund amount reaches $9.5 million and will provide a refund of $2 million to the developer to cover the cost of the land after the mall opens.

Rea said Monday’s action essentially grants that rebate to Noon Pell City Center, LLC, which is the holding company that will actually operate the development, instead of Noon Pell City.

“Under the development agreement between Noon Pell City and the city, Noon has the right to buy the old hospital property, and part of the incentive is that they buy it for a certain amount. amount and the city is essentially reimbursing that amount,” he said. “The option agreement is assignable and they have the right to assign it, but it’s subject to city approval.”

City Manager Brian Muenger called the move “superficial” and said it was just one of the steps the city needed to take to make the development happen.

“This is something that was widely contemplated in the original agreement, and companies have been known to create multiple holding companies that have different responsibilities with the structure of the agreement,” he said. “It was something that was planned.”

Muenger said the action is just one step in the process, much like a contract the council approved at a meeting called last week to remove trees and level ground at the site of the old hospital.

“Projects have been moving forward very steadily for some time in the background,” he said, “but yeah, that’s another indicator that it’s getting even closer.”

Muenger said the city wants the sale of the property to officially close in July. He said residents will soon begin to see physical signs of progress.

No stores for the development were officially announced, but the initial deal mentioned TJ Maxx or Marshalls, Hobby Lobby Five Below, Ross Dress for Less, Old Navy, Rack Room Shoes, America’s Best Contacts and Eyeglasses, pOpshelf, Petsmart, Burlington and Ashley. Furniture as pre-approved tenants.

The site plan also lists a total of four plots outside the development, which also have no tenants listed. Muenger said in December that two of those plots will have businesses recruited by Noon, while the other two will have businesses recruited by local developer Bill Ellison.

Council Chairman Jud Alverson also said at the time that Kevin Jennings and Jamey Flegal of Noon were trying to recruit a national site to switch restaurants on one of their packages.

In other subjects, the council:

– Recognized the Pell City 6U All-Star Baseball Team for winning the State Championship;

— Approved a resolution allowing an application to the Community Development Block Grant Program for the improvement of the water system from Morningside to Woodhill Road;

— Approved resolution awarding a bid for a 2022 Ford F-150 4×4 for the Planning and Zoning Department in the amount of $35,073.18 to Long-Lewis of River Region;

— Approved a one-time lump sum payment in the amount of $34,788 to the Retirement System of Alabama for the city’s retirees or beneficiaries of retirees;

– Approved to hold a public hearing for August 8th for nuisance reduction for the properties of Kilgore Lane, 21st Street South, 8th Street South, 3rd Street South, Truss Ferry Road, Mulberry Street, 7th Avenue South, Blue Cutt Road, Walmart Retention Basin, Sunset Cove Cul-de-Sac and Retention Basin, and Fox Hollow Gas Line; and

— Approved the holding of a public hearing for July 11 to consider evaluating the cost of cleaning up the properties on 6th Avenue North, 1st Avenue South, Stemley Bridge Road and Tyler Street.