Publix eyeing city center sites
Decision expected by fall on downtown, Lakeview Thursday, August 02, 2007DAWN KENT BirminghamNews staff writer
Publix is eyeing a downtown Birmingham site and another in Lakeview as possible locations for mixed-use, multi-level grocery developments like those the retailer has in urban areas such as Atlanta.
The Florida-based supermarket chain has not committed to either site offered by Birmingham developers, Dick Schmalz of RGS Properties Inc. said. A decision is expected by early fall.
The downtown site is the vacant Firestone building and an adjacent florist at 20th Street South and Third Avenue, an area convenient for office buildings to the north and UAB to the south, Schmalz said.
A Publix there also would achieve Birmingham leaders' goal of a downtown grocery store to serve the city center's bustling office worker population and a growing number of urban loft dwellers.
In Lakeview, the site is at 29th Street South and Seventh Avenue, where Publix would be on the first floor of the planned 29Seven condominium development.
Retail Specialists Inc. is leasing the retail component for that project, and President Robert Jolly said Publix would be ideal for the space.
"It's the perfect location for Publix to serve some of the more established neighborhoods but also capture some of the condo conversion happening along Highland Avenue and downtown," Jolly said.
Scott Bryant, owner of the Firestone building, is joining Schmalz in the development of the retail component of that site. The mixed-use concept would consist of a Publix on the ground floor, topped with at least two levels of parking and condominiums.
As part of the concept, Publix uses escalators that accommodate shopping carts to connect the separate levels.
The Publix would be smaller than the average 45,000-square-foot store, with about 29,000 square feet.
There are similar plans at the Lakeview site, although there is room for adjacent retail shops, and developers are investigating underground parking.
In addition to Publix approval, the mixed-use development plans hinge on whether developers can come up with an alternate foundation system to support the structures, due to challenges with subsurface conditions at both sites.
Because of those challenges, the developers may have to draft alternative plans involving more surface parking and less parking deck space at both sites or alternate sites, Schmalz said.
Plans at the Firestone site call for 100 to 120 condominiums that would be developed by The Cityscape Group, which has high-end condo, loft and townhouse projects across the Southeast.
Cityscape's numerous Birmingham projects include Athens Flatts on Second Avenue North and University Flats next to UAB. Cityscape partner Adam Cohen said Publix's interest gives a lot of credence to the loft development that's been happening in the city.
A downtown store would not only benefit from the growing residential population, he said, but also "drive-home" traffic from thousands of workers.
The condos would range in size from 800 to 1,100 square feet, with private balconies and high-end finishes such as hardwood floors and granite countertops.
In Lakeview, the 29Seven project plans call for about 65 condos, with an average size of 1,000 square feet and similar features, Jolly said.
Developers are waiting on the outcome of the Publix decision to determine the floor plans, he said. The project is expected to represent an estimated investment of $20 million to $22 million.
The expected investment at the Firestone site is $35 million to $40 million, Schmalz said.
Griffin Lassiter, business and economic development liaison for the city of Birmingham, said a grocery store for the city center is a high priority. Other high-priority areas are the western area and Roebuck area.
Mixed-use concept:
Developers have been meeting about the projects with city officials, who prefer the mixed-use concept, because its vertical nature takes up less land. That leaves more land available for other development opportunities and additional city revenue.
However, those mixed-use plans are considerably more expensive than a traditional grocery concept with surface parking. So if the developers proceed with the mixed-use route, they expect to seek incentives from the city to accomplish those goals.
Schmalz and Jolly said the Publix stores are likely to foster additional development opportunities, because Publix is the type of retailer that others tend to follow.
A Publix spokeswoman said the company does not comment on sites until there is a confirmed lease.
Publix entered the Birmingham market in 2002 with the opening of a store on U.S. 31 in Pelham. Now, the retailer has 13 Birmingham area stores and 28 statewide, according to its Web site.
In addition, Sharp Realty & Management recently announced that Publix would anchor the planned Pelham Towne Center.
E-mail:
dkent@bhamnews.com
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