City decides to negotiate with Post Office Pies, townhome developers for Patriot Park lot
The city council decided in its March 7 work session to move forward in negotiations with the West Homewood Development Group for potential sale and development of the property at 165 Oxmoor Road.
The development group was the only one to submit a proposal in the most recent city request for proposals for the lot next to Patriot Park. Their live/dine proposal included a three-story building, anchored by Post Office Pies on the ground floor with four condominiums above, and a possible second building with townhomes.
The council has had concerns with this and previous proposals over the low offering price for the lot, which the city purchased at $135,000. The West Homewood Development Group offered $35,000 for the lot, the previous Grove proposal offered $50,000 and the food truck park offered $100,000. While potential sales tax and other revenue could recoup the city's loss, Mayor Scott McBrayer pointed out that selling below value could lead to lower future offers by developers for other West Homewood commercial properties.
The work session started with a 15-minute executive discussion related to "price, purchase and conditions of sale." When the public portion of the meeting resumed, Council President Bruce Limbaugh invited public comments.
Kyle Kirkwood, who has been working with fellow Homewood residents Sonya DiCarlo and Paula Harris on their Grove development proposal, said their team is still interested in working with the city outside the RFP process, noting their longstanding interest and work on their development.
Some residents expressed concerns over the low offering price, the height of the live/dine proposal and its positioning toward Patriot Park. They also had concerns about residences being placed on the lot, though city attorney Mike Kendrick corrected a misconception that the Alabama Department of Environmental Management had declared the property unsafe to live on. Ward 2 Representative Fred Hawkins said that compared to the relative risk of making a successful retail or restaurant business at the location, high-end housing would be a fairly safe bet to be profitable.
“It’s going to sell. Everything over there sells,” Hawkins said.
Residents Erik Henninger and Andy Conaway said they had taken Facebook polls and found the majority of polled residents supported the live/dine concept. While the Facebook polls are not representative or comprehensive, the council agreed that the information was a useful element in their decision-making. Ward 2 Representative Vance Moody commented that making a business deal like this in public meetings changed the power balance and process of the negotiations, especially as residents weigh in, and that can make the city's job more complicated.
Some who spoke felt that a low selling price was worth the long-term benefits, both for that property and the area as a whole. Sonya DiCarlo also spoke, reminding the city that one of the offers she and partner Paula Harris had previously given for the property, prior to the RFP, had been for the full asking price, with negotiation on other sale terms.
After the meeting, DiCarlo said she and Harris were disappointed that the city did not reconsider that earlier proposal or negotiate over The Grove outside the RFP process as they had asked, instead ultimately choosing to negotiate with West Homewood Development Group.
Ward 5 Representative Peter Wright said that the Post Office Pies and housing proposal had a “clear, successful brand” and residential elements that could offset the commercial risk and potentially draw new developers.
“Just as there is risk for that proposal, on the other side there’s a truckload of opportunity,” Wright said.
The council voted unanimously for Kendrick to continue negotiations with the West Homewood Development Group over their proposal, including the development price. There are no further meetings scheduled on the subject at this time.