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Fairhope accepts $3 million HUD award for Fair Oaks Airport Industrial Park and selects firm for environmental review

2543641 · March 11, 2025
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Summary

City Council accepted a $3,000,000 HUD community project funding grant to extend infrastructure at the Fair Oaks Airport Industrial Park and authorized selection of Volkert to perform the required environmental assessment, with the mayor authorized to negotiate the fee for council approval.

Fairhope City Council voted to accept a $3,000,000 HUD community project funding grant to support infrastructure improvements at the Fair Oaks Airport Industrial Park and authorized Mayor Sherry Sullivan to sign grant documents. Council also approved the selection of engineering firm Volkert to perform the environmental assessment for the project and authorized the mayor to negotiate a not-to-exceed fee for later council approval.

Why it matters: The grant will fund road and utility work intended to make industrial lots build-ready at the airport industrial park. Staff told council the scope includes site improvements such as light-industrial access roads, curb and gutter, and underground utilities; council discussion noted the actual build cost for full work could exceed the HUD award (staff estimated total needs may be roughly $5 million) and additional grant or funding sources are being pursued.

Details: Council was told the HUD award alone is unlikely to cover all costs. Staff said bringing the lots to market value could require additional investment but that developing the park would create build-ready industrial parcels that may be sold to offset some costs. The council approved both the grant acceptance and the engineering selection in separate votes.

The city’s authorization of Volkert to perform the environmental assessment is a standard step to satisfy federal grant requirements and advance project permitting. Ratification of any negotiated fee will return to the council for final approval.