Hoover council approves lease and budget reallocation for Riverwalk building amid public concern

The Hoover City Council approved a lease authorizing the mayor to execute an agreement with the Alabama Department of Revenue and voted to reallocate funds for the department’s build-out at the Riverwalk/3021 Lorna Road building, council members said during the meeting.

The decisions were taken after multiple council members and several residents urged more information about the Riverwalk project, the status of a health-care-provider selection tied to the building and earlier city spending related to 3021 Lorna Road.

Why it matters: Council discussion and public comments showed lingering public concern about the city’s handling of the Riverwalk project and the earlier purchase and renovation spending for the 3021 Lorna Road property. Residents said the city has committed significant funds and legal fees and asked for clearer reporting on occupancy, plans for the Lorna Road building and any potential conflicts.

What the council did: The council passed resolution 8532-25 authorizing the mayor to execute a lease with the Alabama Department of Revenue for space in the Riverwalk building and later approved resolution 8533-25 to amend the fiscal-year budget to reallocate funds for the department’s build-out. The council also passed related budget items funding janitorial services tied to the relocation and other operational spending for the Riverwalk building. Council motions carried by voice vote; the mayor declared the motions carried.

Discussion and public comments: Councilor Middlebrooks asked for a status update from the health-care authority and said the public deserved to hear where selection of a health-care provider stands. In his remarks, he noted the council’s earlier approval of the Riverwalk agreement and asked for an update on how occupancy projections and deadlines are tracking.

Resident Paul Henry criticized the deal and the city’s approach to leasing and renovation costs. “It’s desperation, and the city does not need to take desperate action with public dollars on the line,” Henry said. “This has got to stop.” Henry also said the state revenue department is required to use competitive bidding and argued the city should not subsidize state office space with public funds.

Resident Katie Thomas, who said she reviewed prior council actions, described the city’s purchase of 3021 Lorna Road on Dec. 5, 2022, and cited roughly $1 million the city has since allocated for renovation. “That building is empty and has been sitting empty for quite a long time,” she said, and asked for clearer accounting of what the city has spent and why the riverwalk plan supplanted prior plans for Lorna Road.

Several speakers asked whether the city had full information about the developer’s advertising of space and whether master-lease terms were being followed. Councilors and residents also asked for a presentation that would include the developer, the health-care authority and city legal counsel to answer questions about lease terms such as triple-net provisions and renovation responsibilities.

Conflict-check disclosure: During discussion of the budget reallocation for 3021 Lorna Road, council members noted a prior inquiry about a familial connection between the owner of the 3021 property and a local law firm. Councilor Middlebrooks said the council requested more information; legal counsel conducted a conflict check and concluded there was no conflict of interest under the applicable legal-ethics rules. The councilor stated this disclosure was made for transparency, not to imply wrongdoing.

Arts council interest and building options: The council heard that the Hoover Arts Council has discussed using part of 3021 Lorna Road for visual-arts classrooms, maker space and artist workspaces; the arts council chair reported survey interest from local artists. The council debated preserving some funds for the Lorna Road property to allow rehabilitation, subleasing or sale rather than removing all funding.

Next steps and requests: Councilors asked staff to arrange a fuller briefing on Riverwalk and related leases that includes the developer, the health-care authority and city legal counsel so the public and council can review lease terms, renovation responsibilities and occupancy plans. The council also approved related budget amendments and operational contracts tied to the Riverwalk building relocation.

Actions recorded: The council approved resolution 8532-25 (lease authorization) and resolution 8533-25 (budget reallocation for build-out) and passed associated budget amendments for janitorial and other services tied to the Riverwalk relocation. Motions were made and seconded; items were carried by voice vote with the mayor announcing the motions carried.

Background details: Council discussion referred to the city’s purchase of 3021 Lorna Road on Dec. 5, 2022, for about $2,000,000 and to roughly $1,000,000 allocated for renovation since the purchase. Councilors and residents referenced prior Riverwalk approvals and earlier public statements about occupancy projections and deadlines. The council did not announce a final selection of a health-care provider during the meeting.

What was not decided: No final public-action changes to the Riverwalk Master Lease were approved during this meeting; councilors asked for additional information and an expanded briefing to address outstanding questions and transparency concerns.