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City buys old Sara Lee plant

By J.D. Davidson
The Times-Journal

Published July 23, 2009

After watching as several potential employers struggle to reach a deal to buy Fort Payne’s old Sara Lee plant and its land, the Fort Payne City Council decided Tuesday to buy the property for $1.2 million with the hope of attracting more jobs.

“My hope and our council’s hope is to secure an industry that will come in here and employ our people, especially the people who have recently lost their jobs,” Fort Payne Mayor Bill Jordan said.

At its regular meeting, the council gave Jordan the authority to execute the documents needed to secure the property. He said he has signed the contract and was told Sara Lee officials were expected to sign Wednesday. Jordan said the deal could close in about a month.

The 363,000-square-feet building comes with 53 acres and rests 6,000 feet from Fort Payne’s new Interstate-59 exchange currently under construction.

“I think it’s going to be tremendous,” DeKalb County Economic Development Director Jimmy Durham said. “It gives us the flexibility to sell the building. Working with Sara Lee, we didn’t know what they would do. Now we have the flexibility to sell to whoever the city wants to sell it to.”

The city hopes to sell the building for the $1.2 million and keep the additional 26 acres as more industrial incentive.

Fort Payne City Councilman Johnny Eberhart said several companies have expressed interest in the building over the past few years, but failed to reach an agreement with Sara Lee.

One of those companies, according to Durham, nearly expanded to Fort Payne, but backed out when Sara Lee asked for an additional $800,000 above the $4 million list price. That company eventually located in Kentucky.

“That was one of the things that really made us want to look at buying the building,” Durham said.

Durham expects to reach out to several of companies previously interested in the site to gauge future plans.

“I think it’s very important in that the city has the property, and we’re able to deal with potential industry that’s looking to expand,” Jordan said. “With the new interchange, we feel like it will be attractive for someone.”

Jordan also said the city plans to apply for a FEMA grant to buy the fire-damaged Fort Payne Church of God property. It sits adjacent to the city’s Alabama Walking Park and also rests in the flood plane.

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The Fort Payne Times-Journal | Publisher: J.D. Davidson

811 Greenhill Blvd.NW, Fort Payne, Alabama 35967 | Tel: 256-845-2550 | Email