Huntsville/Madison Development News (pharmacies, hotel, closing)

[RocketDawg]

Originally Posted by Vongoros

It seems the Census Bureau is a bit more casual with CSA definitions. I wonder when we will see a redefinition of the Huntsville MSA?

CSAs certainly seem to be a stretch at times. I think one of the criteria is supposed to be 15% commuter swap between counties.

Huntsville MSA doesn't include Morgan County/Decatur for what I think is a couple of reasons: They don't want to be included, and 2)Decatur has its own MSA. If the proposal to change MSAs to needing a central core from 50,000 to 100,000, it likely would have been included since Decatur would have become a micro, but the proposal didn't pass. It probably will eventually since there are really already too many metros in the US.

Metros were redefined (delineated, as they call it) this past April based on the 2020 Census, so the next chance will be in an interim look in 3 or 4 years. The next major change will be likely in 2033 based on the 2030 Census. Not sure why it takes so long to manipulate the numbers since everything is automated now, but they're still slow.

Here's the official publication, in lieu of Wikipedia: https://www.whitehouse.gov/wp-conten...etin-23-01.pdf

[AU HSV]

Originally Posted by AU HSV

In addition to the 500 units Phase 1 will include 36,000 sq feet of retail, 35,000 sq ft of office, streetscape improvements for Clinton, Monroe, Holmes and development to Pinhook Creek (Riverwalk), two new roads through the site
at least 810 parking spaces. 245 of those would be surface lots until if and when Phase 2 is built which would include at least a 100 room hotel and parking garage to replace one of the surface lots.
Think basically it's the same just different timelines that have to be met (Same as the previous agreement but now have changed hence the need for a new agreement), and the hotel component can be developed by a third party if the opportunity should come. A lot of legalize speak as all documents like this are so I may have missed something or interepereted it incorrectly.
Phase 1 construction has to commence no later than May 1, 2024.
Phase 2 No later than Nov 1, 2029!
higher interests rates and sharp increases in material costs are really putting a damper on developments.

More details and better description of the project

https://www.al.com/news/2023/11/375-...struction.html

[johnsonkk]

Originally Posted by AU HSV

More details and better description of the project

https://www.al.com/news/2023/11/375-...struction.html

And now with 4 phases merging into 2, and the phase 2 project (the hotel) has no obligation to be built. The funding may dry up (thru routine building of phase 1 and increased construction costs) and by 2026, prevent the phase 2 from starting.

[RocketDawg]

Originally Posted by AU HSV

More details and better description of the project

https://www.al.com/news/2023/11/375-...struction.html

I was downtown last night at the Mars Music Hall, and the sign across Clinton now says "Huntsville Up Front", or perhaps it was "Up Front Huntsville". Not sure if that's significant or not, but looks like a name change.

[RocketDawg]

Originally Posted by johnsonkk

And now with 4 phases merging into 2, and the phase 2 project (the hotel) has no obligation to be built. The funding may dry up (thru routine building of phase 1 and increased construction costs) and by 2026, prevent the phase 2 from starting.

I have a feeling that the project will be pared back significantly from the initial announcement. "Progress" to date seems to bear that out.

[AU HSV]

Originally Posted by RocketDawg

I have a feeling that the project will be pared back significantly from the initial announcement. "Progress" to date seems to bear that out.

I disagree, while it is possible, the time and effort to get a project of this magnitude organized, especially during rising interest rates and material logistics is no small task. According to the article the project has not changes signifiacantly. It is a long build out, but we have seen that with every large project, (Mid City, City Centre and the champ of long build outs ..Constellation).

[AU HSV]

Boeing breaks ground on expansion.

https://boeing.mediaroom.com/news-re...ts?item=131363

HUNTSVILLE, Ala., Nov. 13, 2023 — Boeing [NYSE: BA] has broken ground on a 35,000-square-foot expansion of its Huntsville factory that produces the Patriot Advanced Capability-3 (PAC-3) seeker. The expansion will enable Boeing to increase annual PAC-3 seeker production by more than 30% to meet increasing air and missile defense needs worldwide.

[dijkstra]

Originally Posted by johnsonkk

And now with 4 phases merging into 2, and the phase 2 project (the hotel) has no obligation to be built. The funding may dry up (thru routine building of phase 1 and increased construction costs) and by 2026, prevent the phase 2 from starting.

By the time 2026 rolls around, we will be living in a completely different economic environment. We are at or really close to the peak of interest rates and at some point in the next couple of years or so, we will see them come down. This area is most likely going to boom in the near future.

[AU HSV]

Originally Posted by dijkstra

By the time 2026 rolls around, we will be living in a completely different economic environment. We are at or really close to the peak of interest rates and at some point in the next couple of years or so, we will see them come down. This area is most likely going to boom in the near future.

Believe and hope you are correct. The housing market may see that early next year if the rates come down which some experts expect. Hopefully it will really open up the commercial developments as well. Imagine many of these big projects are waiting on that possible drop.

[AU HSV]

Originally Posted by AU HSV

Mid City gets another partner.

"Developer RCP Companies has secured a major investment partner, Benson Capital Partners (“BCP”), at its Huntsville MidCity District mega project. BCP was founded by Gayle Benson, owner of the New Orleans Saints and governor of the New Orleans Pelicans. The firm brings a wealth of experience in venture capital and real estate investment. The$2.2 Billion mixed-use district replaces a former mall and is poised to become a cultural and entertainment destination in Huntsville. Huntsville Midcity District is located at 5909 University Drive, in Huntsville Alabama."

https://citynownext.com/

We had some discussion earlier on the hotels so far announced at Mid-City, ALOFT, Tempo, and Indigo for approximately 320-350 rooms, According to the report above there will be at least double that in Mid City when complete ( not sure if they are counting the existing Holiday Inn on site.)

"Focusing on entertainment, retail, dining and residential experiences, upon completion, it is projected to feature 1,865 residential units, 925 hotel keys and state-of-the-art office spaces, along with outdoor gathering spaces, including the world-renowned Orion Amphitheater. "