City Moves Forward With Purchase of Former Montgomery Advertiser Property
MONTGOMERY, Ala. (WAKA) — The Montgomery City Council on Monday approved two items that would allow the city to acquire around 10 acres of prime riverfront property downtown, paving the way for potential large-scale development, including possibly an indoor arena. The two items are listed below.
- Resolution authorizing the use of city funds for the acquisition of property located at 425 and 475 Molton Street to be reimbursed from future bond proceeds.
- Ordinance authorizing the COM to enter into a Real Estate Purchase Agreement with Farpoint Investment Ventures, LLC for the acquisition of property located at 425 and 475 Molton Street.
The specially called meeting centered on whether to move forward with the $5.5 million purchase agreement involving the former Montgomery Advertiser properties at 425 and 475 Molton St. The land is currently owned by Backstage Venues, LLC. According to the ordinance, Farpoint Investment Ventures, LLC from Chicago, Illinois would buy the site and immediately sell it to the city for the same $5.5 million price.
That passthrough cost includes $5 million for the land, a $250,000 development fee and a $250,000 professional services fee — both paid to Farpoint.
Some residents urged the council to consider other priorities.
“We are talking about millions of dollars,” Montgomery resident Angela Exford said. “There are a lot of things the city can use those millions for. We have a lot of roads that need to be fixed. We have buildings that need to be refurbished.”
Montgomery Chamber of Commerce President Anna Buckalew told council members that securing the riverfront site is essential to long-term downtown growth.
“That asset as a city property makes a whole lot of sense,” Buckalew said. “We can collectively know what we want to do to drive tourism and improve quality of life downtown.”
Council member Charles Jinright questioned moving ahead before receiving results from a feasibility survey the council funded for nearly $100,000.
“We really need that survey because we spent the money for it, and now we’re going to buy a piece of property before we know what the survey tells us,” Jinright said. “Does that bother anyone else? Because it bothers me.”
Frank Robinson, the city’s economic development director, said buying the property is the critical first step.
“A survey doesn’t mean anything if you don’t control the land,” Robinson said. “No matter what happens — if it’s a convention center, housing or mixed-use — we’re going to put the best thing on the site, but we have to start somewhere.”
The council ultimately voted to approve the purchase and accompanying measures. City leaders have discussed the possibility of building a large indoor arena for sports and concerts on the property.
District 1 Councilman Ed Grimes and District 2 Councilwoman Julie Beard were the only council members who voted against both measures. Grimes said the city has a lot of strain on the budget already, citing the funding commitment to help Jackson Hospital stay open and deferred maintenance costs on city properties around town.
“I don’t think it’s a bad thing to have the property, but I’d like to know what we’re going to do with it,” Grimes said. “I’ve been told there’s another $2 million in mitigation, then demolition costs, and we may have to move the bus station. That $5.5 million price could double easily.”
City Council President C.C. Calhoun said acquiring the land is only the beginning of what could become a $200 million investment in a convention center-anchored project.
“We’re looking at about an 8,000-seat arena,” Calhoun said. “I think it’s going to mean growth in economic development and tourism. I think it’s the ideal thing to do, and I’m grateful the council passed it today.”
The council had delayed voting on the matter at their Dec. 2 meeting to gather more information from the mayor’s office. The closing of the purchase and sale is expected to be on December 11.
