City Buys 1.1 Million Dollar Property
For Future Commercial Development
Also Plans To Purchase 4.6 Acres For Future Library Site

The City of Arab is buying this property to be used for a future commercial development project.  In the background is businesses along North Brindlee Mountain Parkway.  Photo by Dwight Hayes

April 6, 2009
The City of Arab isn't letting the bad economy dampen their efforts to recruit future commercial development.  The City Council voted to purchase 21 acres on North Brindlee Mountain Parkway for a future commercial venture during the regular council meeting Monday night.  Total cost of the property is $1,100,000 or $52,381 per acre.  The property value was set by a commercial appraiser according to Mayor Gary Beam.  The property is owned by Jack Couch and the estate/heirs of Jesse Couch.  Enell Couch is representing the estate of Mr. Couch.  The property is bounded on the West by the Old Huntsville Highway, on the North by Haynes Road NE, and on the East by Hwy 231/Brindlee Mountain Parkway.

Mayor Beam said the negotiations for the property have been ongoing for several weeks and that the purchase had been discussed by the council.  The council declared an executive session at the end of the last council meeting to discuss "pending legal actions and the possible purchase of property," but did not specify the location of the property.

Beam said the purchase of the Couch property is an ideal acquisition for the City as it attempts to recruit commercial and retail businesses into the City.  Beam said the City will hire an engineering firm to develop a master plan for the property and to "recommend the highest and best use of the property".  The plans would include how to divide the property, placement of roads, and engineering and drainage  Four firms are currently developing proposals to present to the council in hopes of being chosen for the project.  The engineering proposals are expected to be completed within 2-3 weeks according to Arab Economic Development Director Sammy Waldrop.

Beam said the CDA has talked with several restaurants and other retail businesses.  While there are no firm commitments, Beam said he is hopeful the purchase will encourage some of those businesses to locate in Arab.  Several members of the council agreed.  Councilman Ronny Shumate said it is the council's responsibility to act in the best interest of the citizens and that he "truly believes this will be good for the citizens of Arab."  Councilman Brian Bishop agreed.

The cost of the purchase will be financed by Citizen's Bank, according to Beam.  While the exact details of the closing have not been finalized, Beam said current plans are to finance the entire amount for seven years at an interest rate of 3.2%.   Whether the payments would be monthly, quarterly, or annually has not been decided.  Beam said the property survey and appraisal is complete and the title insurance and final closing details and date is pending.

Waldrop said an economic specialist, who has looked at the site, predicted the project could pump $30 million into the local economy over a five - six year period.  Waldrop said the project could bring in $1.1 million in tax revenues over the same period.

Ideally the City would lease the property to a single developer or possibly to multiple developers, for a period of twenty years, according to Waldrop.  The property could be sold to developers but Waldrop said that was less likely due to the tax advantages of leasing.

Neither Beam nor Waldrop would speculate on a time line for development of the property and the opening of any new businesses, but both said they are optimistic that the tentative commitments they currently have will become permanent once the project is under way.

The council also voted to authorize Beam to negotiate with Robert Williams for the purchase of 4.6 acres located immediately North of the Arab Senior Center property.  Beam is authorized to negotiate a price up to the current Marshall County tax appraisal of $94,100.  The purchase would be paid for from bond money left over from the Senior Citizen building project.

Beam said there is plenty of room to build a new library should the council decide to proceed with that project.  The current residential building on the property could be used for the Adult Education Program until a decision is made about a library according to Beam.  Arab currently pays $600 per month in rent to house Adult Education program.

Councilman Chris McNeese said there are several options available to make the property very useable.  While funding is not currently available to build a new library, Beam said he is looking at every possible source for funding.  He said there is some grant money available for such projects and is hopeful that it could become available by next year.  Councilman Ronny Shumate said that he thought it was safe to say that a new library would be build before the current terms of the Mayor and Council end.