City Council approves incentives for East Lake grocery, makes zoning changes, cancels loan

The Birmingham City Council, at its regular meeting for Tuesday, Nov. 5, voted to approve a zoning change for a new residential development near Avondale and Forest Park, approved a project agreement between the city and the owners of the Village Market grocery in East Lake that will include substantial improvements to the facility and cancelled a loan agreement with the developers of the planned Lakeview Green project.

Zoning change

Members voted to make it possible for a developer to build two new apartment buildings on parcels at 4211 Third Ave. S. and 4241 Third Ave. S. They approved a change in the zoning for the properties from B-2, general business district, to MU-M, mixed-use medium district.

Tim Gambrell, the city’s chief planner, told the Council that the developer will construct two four-story, 48-unit apartment buildings. “These are two bookend apartment buildings that will look very similar,” he said.

The applicant meets the parking requirement, and the Forest Park Neighborhood Association voted in August to recommend approval, Gambrell said.

The application was filed by attorney Randall Minor on behalf of the owners, Axel Rivera Barron and Susan Linebarry Barron of ABR properties LLC.

Approval of the change was recommended by the city’s Zoning Advisory Committee and the Council’s Planning and Zoning Committee.

Grocery store improvements

As part of its consent agenda, the Council approved a project agreement between the city and Village Earnest LLC, owners of the Village Market grocery store at 7737 Second Ave. S. in East Lake.

In return for financial incentives, the owners will make substantial improvements to the store, including upgrades in refrigeration, point-of-sale equipment, signage, shelving and gondolas. The owners will also repaint the store, rebuild the cash office and provide additional security. 

The city will provide financial incentives up to $865,000 to the company, consisting of an initial payment of $200,000 from the city’s “Healthy Food Fund,” with the remaining amount of up to $665,000 to be come from future sales tax revenue. 

The item was recommended by the mayor’s office, the Economic Development Committee and the Council’s Budget and Finance Committee.

The owners of the grocery announced in May 2019 that they had acquired the facility, formerly operated by Western Supermarkets, and would continue to serve East Lake.

Cancelling a loan agreement

Members voted to terminate a business development loan credit agreement the city had with 1904 on 4th LLC, the developers of the planned Lakeview Green development. The loan was for $1.5 million with a term of 24 months at an interest rate of 4.17% per annum. 

According to Melissa Smiley of the city’s legal department, the developer contacted the city last week and said he no longer needed the loan and had obtained other financing for the development.

The mixed-use project — with condominiums, apartments, restaurants, retail and a large public green space — was announced with great fanfare in August 2017.

Developers have completed some site work, including the demolition of the old Davis School. The loan was approved by the Council in 2018.

Public hearing

The Council also voted to set a public hearing for December 3 to consider a request to change the zoning at 225 Daniel Payne Drive from C-2, general commercial district, to QI-1, light manufacturing district.  The request was filed by Minor, who represents the owner, Daniel Payne LLC.