The Huntsville City Council voted Thursday night to take out an option to purchase 17 acres of land for a major retail development at the intersection of Memorial Parkway and the Northern Bypass currently under construction.

The city will pay $20,000 for the option after reaching an agreement with Joni D. Swaim, Jeri S. Kirkpatrick and Johnnie M. Swaim for property located along Bob Wade Lane. According to documents, the option is for 150 days. The purchase price listed for the land is $3.2 million.

City Urban and Economic Development Director Shane Davis said the property is near the Food City and Starbucks currently under construction in north Huntsville. He said they are about 95% complete, with opening expected on June 28.

The land is also adjacent to property the city previously purchased.

“Actually, the Food City property, once we put that deal together, we actually sold that Food City parcel to Food City for the same price we paid,” Davis said. “So, we didn’t lose any money.”

The city kept out parcels on the east side of Memorial Parkway. Davis said the city is expected to sell that for retail development that will come before the council with that in early June.

“There will be a lot of action in this location as we get into the summer months,” Davis said.

He said the city has been working on “a significant” project on 42 acres on the west side of the Parkway. Davis said the city reached out to the Swaims for a piece of property that adjoins the 42 acres.

David said the project continues to evolve. “We’ve had more interest than we can put on the 42 acres, which is a good thing,” he said.

The 17 acres would be combined with the 42 acres and be included with the current project.

“Once the dust settles, we’ll have some really good announcements,” Davis said. “We will not own any of the property. Through that, we will be budget neutral as far as the taxpayers’ funds.”

District 1 City Councilwoman Michelle Watkins, who represents that part of the city, called the effort “a great day” in north Huntsville.

“I know the city isn’t overly fond of land banking, but this is a good use for it, though,” City Council President John Meredith added.