CULLMAN, Ala. – A planned $15 million commercial development on Third Street Southwest, including a new First National Bank facility and property reserved for future retail, will receive city assistance for road improvements under an agreement approved by the Cullman City Council on Sept. 28.
The development covers approximately 3.75 acres at 201 and 401 Third St. SW. First National Bank of Pulaski plans to construct a bank and community room at 201 Third St. SW, with the remaining property at 401 Third St. SW reserved for retail development.
The agreement describes the bank as being under contract to acquire the property.
First National already operates a Cullman branch at 1645 Derenda Ave. SW, Suite E. The development agreement does not specify whether the new facility would replace that location or operate as an additional branch.
The council adopted Resolution 2026-152 authorizing the economic development agreement, which assigns the city responsibility for 80% of the cost of a required deceleration lane on U.S. Highway 278, also known as Third Street Southwest.
The bank is responsible for the remaining 20%. The entrance to the future retail area would align with Fourth Avenue Southwest.
The cost-sharing provision includes engineering, construction and related state or federal requirements. The publicly posted agreement does not include a construction estimate for the lane or establish a maximum dollar amount for the city’s contribution.
The approximately $15 million investment cited in the resolution refers to the overall commercial development, not the city’s share of the project.
According to the agreement, the bank reported that rising construction and labor costs, along with required public infrastructure improvements, made financial assistance necessary for the deceleration lane.
Sidewalks along Second Street Southwest and Third Avenue Southwest are also required. The agreement provides additional time for their installation while the city seeks Transportation Alternatives Program grant funding.
The bank must submit sidewalk plans for city approval and would be responsible for installing the sidewalks if grant funding is unavailable or is not awarded within the period specified in the agreement.
The city approved the arrangement under Amendment 772, the Alabama constitutional provision authorizing certain public assistance for private economic development projects.
In its resolution, the council identified commercial redevelopment, employment opportunities and increased tax revenue as anticipated benefits supporting the expenditure of public funds.
The resolution describes the property as part of an underdeveloped area of the downtown business district.
The agreement identifies reuse of the site and additional commercial activity on surrounding properties among the city’s objectives. It does not establish a numerical job-creation commitment.
The posted agreement is between the city and the bank. It does not include a county funding commitment or a condition requiring approval by the Cullman County Commission.
Construction remains subject to applicable permitting, building, zoning, subdivision and environmental requirements.
The agreement also identifies approval from the Office of the Comptroller of the Currency as a requirement for operating the bank, but does not document the status of that approval.
Retail tenants, building sizes and construction or opening dates are not identified in the posted documents.
The agreement also does not detail how the planned community room would operate or establish that the property purchase has closed.
