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Huntsville enters development agreement for Memorial Parkway project

An agreement to put a large mixed-use development along Memorial Parkway frontage near Joe Davis Stadium received City Council approval.

HUNTSVILLE, Ala — Joe Davis Stadium opened its doors in May of 2023 and is home to Huntsville City FC and by 2026, there'll be a lot more to see and do thanks to an agreement to put a large mixed-use development along memorial parkway frontage near Joe Davis Stadium received city council approval.

The project is called Stadium Commons and will occupy the former Hollywood 18 and Century Plaza Office Complex between Drake Avenue and Johnson Road. In a press release by the City of Huntsville, Shane Davis, Huntsville’s Director of Urban and Economic Development said the project represents a significant redevelopment within the heart of the City’s corridor.

“It brings much needed uses to support the ever-growing sports and entertainment events in and around John Hunt Park as well as the surrounding neighborhood,” he said.

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The agreement between the city and Parkway Vesta, LLC, stipulates the construction of a 100-room hotel, 70,000 square feet of restaurant and retail space, 20,000 square feet of office space and 200 loft-style multifamily housing units. dubbed stadium commons, the project will also include a 408-space parking garage, 300 of which would be leased by the city to support events at john hunt park and Joe Davis stadium.

The project is expected to generate $32.5 million in new taxes and a $22 million net return on investment over 10 years. The city anticipates it will recoup its $10.5 million investment into the 300 leased parking spaces after four and a half years.

"So, the ten-year tax return is a little over that $10 million, construction taxes on the development are just under 1.5 million,” Davis shares. “So, you add all that up, the cumulative ten-year taxes generated is just 32 and a half million dollars. After we pay our lease, the net positive new cash flow from the development is still just under $22 million.”

Construction will begin in mid-2024 and be built over three phases through July 2026. Phase 1 includes the hotel and retail space. “This is a three phase project,”  Davis shares. “Actually, the multifamily is the last phase. So depending on the market,  there is opportunity for that to change. More hospitality, more office.  The first phase of the project  focuses on the parking garage and a portion of retail.  In phase two is the hotel and some new office space and renovating some of the existing century plaza. Then the multifamily is the last phase.”

Credit: wzdx
Credit: wzdx

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