After several months of planning, the City of Albertville has decided to sell the old Kmart property for $4.4 million.
During its special-called meeting Friday morning, the Albertville City Council approved ordinance No. 1645-19 declaring the property, located at 7200 U.S. Highway 431, as surplus and approved its sale to Hutton Albertville Marketplace, LLC.
The council approved the contract to buy and sell real property and authorized Mayor Tracy Honea to sign the necessary paperwork. Also, the council approved a development agreement between the city and Hutton.
The council approved ordinance no. 1646-19 to authorize the issuance of general obligation warrant, series 2019-A. According to Investopedia.com a “general obligation bond” or “general obligation warrant” is a municipal bond backed by the credit and taxing power of the issuing jurisdiction, rather than the revenue from a given project that is issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral.
David Langham, of INTL FCStone Financial Inc., said the warrants are an economic development incentive between the city and Hutton to redevelop the old Kmart site.
He said Hutton would be bringing nationally branded retailers to the site, which would result in new sales tax revenue for the city to be able to repay the incentive debt.
Within the new development, Hutton Development Partner Jamey Flegal said there would be a grocery store and a few other businesses. After the city council meeting, he told The Reporter he wouldn’t release the names of the companies moving to Albertville for the new development until the leases were signed. He said the new development would bring approximately 150 jobs.