Developer, city to enter purchase-and-sale agreement
The city of Montgomery is considering selling property on Maxwell Boulevard to a developer with a plan to construct at least 25 high-end residential housing units along with retail space.
If approved by the City Council, the Birmingham-based Stoneriver Company LLC will enter into a purchase-and-sale agreement for about five acres of land with frontage along Maxwell Boulevard and Clay Street that overlooks the river.
The block of land, known as Maxwell East, includes 14 parcels from North Holt Street on the west end to Whitman Street on the east end.
The company will have a 150-day due diligence period from the time the agreement is approved by the council, and can buy 12 of the 14 parcels for $610,000. The contract stipulates the company has to complete the construction of a minimum of 25 housing units within 30 months of the closing.
After the company closes on the first “phase” of the sale, which includes the 12 parcels, Stoneriver has the option of purchasing the last two parcels located on the corner of Maxwell Boulevard and North Holt Street within three years. The site is the former location of the Land and Sea building before it was demolished by the city in October.
The second two parcels will cost about $405,000, which is a higher rate per square foot than the first 12 parcels. Montgomery Mayor Todd Strange said the city would be recuperating all the money it spent to buy the properties. If the second parcels are purchased, the city would be receiving a total of $1,015,000.
...there likely will be more than 25 units... there could eventually be as many as 150 to 250 units, depending on the size of the units.
...the plan is to construct four-story buildings with retail space on the bottom floors. The apartments will be one-, two- and three-bedroom units with parking and other amenities, such as a rooftop pavilion and pool.
The property has to be developed in accordance with the city’s Downtown Master Plan and the Maxwell Boulevard Master Plan.
Strange said the city’s development department has been working closely with the developer to make sure the proposal will work for the city. He said it’s important that the views of the Alabama River be preserved.
Deputy Mayor Jeff Downes said the city put out a request for proposals for the property about a year ago. The city selected a developer, but the project couldn’t be accomplished.
... there’s a clear demand for housing downtown, but the purpose of selling the property in phases is because it’s an “untested” market...
Strange said the development, along with the Wright Brothers Park across the street, will be visible from the interstate. He said the views of the two will make people want to stop in Montgomery.
...The City Council will be able to vote on the purchase-and-sale agreement at its Dec. 18 meeting...
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