Community Profiles

In July 2024, the City of Huntsville and the Huntsville Housing Authority (HHA) were awarded a $50 million Choice Neighborhoods Implementation Grant for the Johnson Towers and Butler Terrace public housing properties and the surrounding Mill Creek neighborhood. McCormack Baron Salazar (MBS), an affiliate of MBS-UI, is the Housing Developer for the project. During the planning for the CNI application with the City and Housing Authority of Huntsville, residents expressed a desire for a grocery store in the community. At the same time, the City of Huntsville was already working with K-VA-T on a grocery store ½ mile from the neighborhood boundary, on Governor’s Drive.

K-VA-T Food Stores, Inc., operating under the name of Food City, is a prominent regional supermarket chain founded in 1955, primarily serving the Southeastern United States. Known for its wide range of products including fresh produce, bakery items, deli selections, and pharmacy services, Food City has built a reputation for its commitment to quality, customer service, and community involvement, often supporting local suppliers and engaging in various community service initiatives.

The grocery store will include a wide array of healthy food items, a bakery and deli, floral boutique, Starbucks café, and an owner-operated pharmacy. Upon completion, the store is projected to serve approximately 19,000 unique visitors, conduct 30,000 SNAP transactions, and serve 16,607 low-income persons (87.3% of visitors), annually.

The project is anticipated to create 131 new full-time jobs, of which 128 will be accessible to individuals who only hold a high school diploma or equivalent. Food City will collaborate with local high schools and universities to attract talent for the new store, as well as through local job listings on the company website. Additionally, Food City is working in conjunction with Urban Strategies and MBS to create a training program in the surrounding low-income community. Program participants will be trained on the skills needed for entry-level jobs at the Huntsville store, and upon completion of the program, Food City will use best efforts to recruit from this pool of candidates to fill job positions.

MBS Urban Initiatives funded a $7.5 million New Markets Tax Credit (NMTC) investment in the project, which was combined with a $1.5 million investment from Truist Community Development Enterprises, for a total of $9 million in NMTC allocation. But for the NMTC allocation, this project would not be able to adequately provide critical goods to low-income individuals in the surrounding community nor implement a cashier-training program in collaboration with Urban Strategies, Inc.

Quick Facts 

Square Footage: 33,375

Total Investment: $7,500,000 NMTC Allocation

Developer/Owner: Marathon Realty Corp.

Allocatees: MBS-UI, Truist CDE

NMTC Equity Investor: Truist

Architect: Matin Concepts, Inc., a Tennessee corporation

Direct Lender and Leverage Lender: Food City Investment, Inc.

Projected Construction Jobs: 150

Projected Permanent Jobs: 131.43

Community Partners: K-VA-T/Food City, USI