Vacant hospital land sees
new life as shopping center

Story by Carol Pappas
Staff and submitted photos

In the 1970s, this land gave way to a new, three-story hospital for St. Clair County in Pell City. In the 1980s to accommodate this quickly growing city, a fourth floor was added. Ten years ago, the hospital saw its last patient moved to its new state-of-the-art hospital across Interstate 20 – again to accommodate the growth of a thriving city.

An abandoned building stood dormant for years then was demolished to once again make way for growth, this time in retail.

For five years, local developer Bill Ellison had been recruiting national retail brands, like Hobby Lobby and T.J.Maxx, to various properties around Interstate 20, but it wasn’t until McSweeney Automotive cleared trees on its development at the corner of I-20 and U.S. 231 that he saw the ideal spot. An unobstructed view left by clearing the trees revealed the old hospital property – visible from U.S. 231 and I-20. “That day, I saw the opportunity,” Ellison said. “That’s it!,” he told himself.

That act of clearing the land led to making it the perfect location for the retailers he was after and more. He approached county officials with the idea that it would be the perfect spot for retail development. It had all the right essentials of Interstate 20 frontage, plenty of acreage and the key – access and visibility from the interstate and U.S 231.

The St. Clair County Commission, which owned the property at the time, gave Ellison options on the land. Later, the City of Pell City assumed ownership of the property. Knowing the kind of retail the city and county needed, Ellison recruited a national commercial development company with a proven track record for this type of development.

Ellison had been making calls on the national retailers, but he was a local developer without the national relationships he needed to swing the deal, he said. He learned of the reputation of key executives of a development company that had those national ties, and he met them at a national shopping center conference in Las Vegas.

Those executives, now with Noon Development based out of Chattanooga, Tenn., began marketing the property, and in recent weeks, officials in Pell City announced the first two confirmed tenants with others to come.

Noon developed the Trojan Marketplace in Troy, where Hobby Lobby and T.J.Maxx are the anchor tenants along with Ulta Beauty, Five Below and Rackroom Shoes.

Delayed by the COVID-19 pandemic, but not deterred, the Pell City development is now becoming a reality. Officials announced Hobby Lobby and T.J.Maxx as anchor tenants on the 19-acre tract with more news on the way about other household name tenants committing to set up shop there.

“The two anchor tenants are confirmed,” said Pell City Manager Brian Muenger. While others have not yet confirmed, Muenger said other tenants frequently locate with anchor tenants and are “proven, name brands. We are very happy to see them committed to it.”

Muenger pointed out that there are four outparcels in addition to the 135,000-square-foot retail complex. The one closest to the interstate has been reserved for a restaurant. In the agreement with the city during adoption of tax abatement incentives, the city will provide the land for a national, sit-down restaurant provided the developers locate one there within two years. If not, it reverts back to the city. “Rather than simply filling the space, we specifically said a national restaurant has to be part of the development.”

For years, citizens have been asking for amenities that would improve the quality of life in the city – more upscale restaurants and quality retail. “The developers are confident they can deliver on that agreement,” Muenger said.

To further ensure the city gets the kind of development its population wants, there was a pre-approved list of retailers.

The “gap” going unfilled for the city, Muenger said, has been soft goods and a sit-down restaurant.

The city has solidified its opportunities by partnering with the St. Clair County Commission as well. All involved see it as a “game changer” for the region.

The city is filing a petition to validate the project with the court, which will review the development agreement to ensure it complies with state law. Once approved, “that’s when work will begin,” Muenger said. Groundbreaking is expected later this year – mid-2022. As a comparison, the Trojan Marketplace broke ground in December 2019. It opened in May 2021.

There is grading work to be done at the U.S. 231 intersection and clearing more trees at the interstate.

“We’re excited about it,” Muenger added. “This is the highest and best use of this property. It will establish Pell City as a viable shopping destination, keeping dollars in the community that frequently were spent somewhere else.”

Ellison agreed. “There is a natural progression in commercial development in a community. Brands follow brands. In the future, any retailers that looks to expand in St. Clair County, they’re going to look at Pell City first. It’s the gift that keeps on giving, and it keeps local tax dollars at home to do some good in the community – providing funding for schools, infrastructure and a better place to live.”

The development, Ellison noted, “greatly expands our shopping trade area. People who would not ordinarily shop here will come here. While they’re shopping at the new stores, they’ll shop at existing stores, too. It’s a win-win for everybody. It makes us a stronger economic hub than ever before, building on our already firm position in the region,” Ellison said.

“This property has been a tremendous partnership between the city and county commission,” said Commission Chairman Paul Manning. “It began with us working together to construct a top-rated, new hospital but then continued with the redevelopment of the hospital’s old site.”

Officials project the investment will generate more than $30 million in tax revenue over 20 years – $11 million of which is allocated to schools – and create a significant number of jobs. “This project will be good for the City of Pell City, the County Commission, and all of our citizens,” Manning said. “This project will provide both job and shopping opportunities that will help keep our families shopping local and attract more shoppers from outside of the county.”

St. Clair Economic Development Council Executive Director Don Smith echoed the essence of the development’s potential impact and talked of the partnership that helped bring it about. “The County Commission and Pell City have a long history of successfully working together on transformational projects. This project was no exception and would have been impossible without both entities supporting one another.”