By Staff
After almost a year of discussions and legal hearings, Food City is one step closer to adding Fort Payne to its list of locations.
On December 29, 2022, a public hearing was held following Amendment 772 to hear both sides of the argument over the $3.1 million agreement between the City of Fort Payne and the Marathon Realty Company (a subsidiary of Food City’s parent company). Marshall County Circuit Judge Claude E. Hundley, III presided over the case of the City of Fort Payne vs. Taxpayers and Citizens of Fort Payne.
Judge Hundley heard sworn testimony from both sides to determine if the City of Fort Payne followed the proper process in making the Food City Memorandum of Understanding. The judge ruled that “no taxpayer or citizen of the City offered evidence in opposition to the plaintiff’s petition.” The judge’s ruling supported the opinion that the City followed the proper process in offering financial incentives to Marathon Realty.
City Attorneys Rocky Watson and Tamara Neeley represented the City of Fort Payne. District Attorney Mike O’Dell and Deputy DA Bob Johnston represented the taxpayers and citizens of Fort Payne that filed the complaint.
According to news reports, Fort Payne City Clerk Andy Parker and City Councilman Phillip Smith testified on the City’s behalf, explaining the benefits the new business would bring to Fort Payne. Melanie Miller, Dawn Nelson, and Brandy Pecaut expressed views against the City allocating money for the Food City project. The parties that sued the City earlier in the year seeking injunctive relief to stop the Memorandum of Understanding from moving forward did not testify at the hearing. The order can be appealed within 30 days, but no comment was given concerning whether or not the appeal would happen.
When Food City opens, it is expected to generate $18.2 million in annual taxable sales and create approximately 140 full and part-time jobs. Following the Memorandum of Understanding, Fort Payne will pay $1.2 million upon the beginning of excavation. If Food City opens to the public within twelve months after the excavation, the City will pay an additional one million, and a final payment of $900,000 will be paid after one year of operation. If the developer does not meet the conditions above, the money will be returned to the City with 2.5% interest. Also, the memorandum becomes null and void if the developer does not start construction within six months of court approval.
Food City will be located at the current location of Twin City Auto Sales.
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