$62 million development set for downtown Huntsville

Constellation development in downtown Huntsville

A $62 million development is coming to downtown Huntsville at the Constellation site between Memorial Parkway and Heart of Huntsville Drive and Clinton Avenue.

Eliminating what the developer described as an “eyesore” of downtown Huntsville, a $62 million mixed-use project that includes new restaurants is moving forward.

The development will be built at the Constellation site – the vacant 25 acres frequently cluttered with political signs at Memorial Parkway and Clinton Avenue and often a first-impression site of Huntsville's downtown as motorists exit the parkway.

It's long been a plot of land the city of Huntsville has been eager to see developed and the city council voted Thursday night to invest $3 million into the project.

Huntsville developer Scott McLain spoke to the council about the development he said he’s worked on for almost 20 years and now has Chicago-based partners that have helped bring action to the plans. Work is expected to begin later this summer and McLain said the first phase of the development will be completed in a little more than two years.

"We've been working on this project for an extended period of time," McLain said. "This is a way we can proceed to eliminate what some people consider an eyesore at the front to our city, at our front door. Clinton Avenue is a main entrance into downtown. We hope to bring something that is distinctive and very important."

Huntsville leaders are embracing that possibility. The resolution in the development agreement said the project is "expected to be a major catalyst for the expansion, redevelopment and renewal efforts along the Memorial Parkway corridor

The project includes a 218-unit multi-family complex as well as 20,000 square feet of high-end office space – which McLain said is non-existent downtown – and 20,000 square feet of retail developments that will include the new restaurants.

A second phase of the development, price tagged at another $25 million, would include a 100-room hotel and at least 60,000 square feet of office space. McLain said the hotel would be built by another developer and be located on the east side of the Spring Hill Suites that is the lone occupant of the land at this point.

The city's investment includes a $2 million parking license that would give the city access to 40 percent of the parking built at the development for 25 years. The two payments for the parking license – each $1 million -- has the protection of not making the first payment until the footings of both the parking garage and the first building of the development have been poured.

"That gives us confidence that the project will move forward," Shane Davis, the city's director of urban and economic development, told the council. "It means the project has been financed with the pouring of those foundations."

The second payment is not due until the developers receive the certificate of occupancy for the multi-family complex.

The last $1 million of the city's investment would go toward improvements at the intersection of Clinton Avenue and Heart of Huntsville Drive as well as a cul-de-sac road within the development. Any cost overruns for those improvements will be covered by the developers.

Davis said the city expects a return on investment of close to $15 million in taxes over 10 years and the city would recapture its $3 million investment in a little more than two years.

“It’s a very good project for our downtown,” Davis told the council. “It’s the front door of downtown.”

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.