The city of Pelham announced Monday it has agreed to purchase the former Oak Mountain Amphitheatre and surrounding property totaling 43 acres from Live Nation.

The city announced it will officially make the $5.3 million purchase once the amphitheatre is demolished, which it anticipates will occur before the venue closes in June.

Live Nation will manage the 9,380-seat Birmingham Amphitheatre slated to open in June. The Birmingham venue, three blocks north of Protective Stadium, is part of the redevelopment plan for the former Carraway Methodist Medical Center campus.

Pelham will use the former Oak Mountain property to expand its arts and entertainment district connecting the Canopy and Creekside development while complementing Campus 124 on the opposite side of the district.

“This is a transformational opportunity for Pelham,” said City Manager Gretchen DiFante. “This next chapter allows us to reimagine the area in a way that brings even more energy and vibrancy to the Pelham Arts & Entertainment District while providing amenities that enhance the experience for both residents and visitors.”

Acquiring the amphitheatre and surrounding property, which includes the parking lot, adjoining property along Buck Creek and a grass parking lot, is part of the city’s long-term plan to bring in tourism to the area, officials said.

“The opportunity to redevelop this site allows us to expand upon our efforts to create a thriving district that is attractive to businesses, visitors, and residents alike,” said Mayor Gary Waters. “The addition of new retail, dining, and entertainment amenities, combined with inviting outdoor spaces, will further establish Pelham as a premier destination in the region.”

The city thanked Live Nation, which operated the Oak Mountain Amphitheatre for decades, for playing a “significant role in making Pelham a live entertainment hub.”

The amphitheatre opened in 1986.

“For nearly 40 years, Oak Mountain Amphitheatre brought many memorable nights of live music to the region,” said Jay Wilson of Live Nation Birmingham. “The City of Pelham has an incredible vision for the future of this site, and we’re looking forward to seeing how the future development will positively impact residents and the continued growth of the community.”

Further information on redevelopment plans and timeliness will be released as they become available, officials said.