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A $500 million development on the 350-acre ALCOA Inc. West Plant property is expected to become Downtown Alcoa.

Finalization of the purchase of the property by Kinsey Probasco Hays (KPH) and International Risk Group (IRG) was announced at a press conference Friday morning a the new Alcoa Service Center.

Called Alcoa West Redevelopment, this is a joint venture of Chattanooga-based KPH and IRG.

"This is the beginning of a journey," said Jon M. Kinsey, a principal in KPH. "This is something very special. We are tremendously excited about the prospects for this development and believe that its location is one of the best in the region.

"Our group realizes this project will have a multi-year build-out, but we feel it has the potential to return a formerly vibrant piece of property back into a contributing member of the community," he added.

Kinsey stressed that at build-out, the project is expected to cost $500 million, not including inflation.

IRG, KPH and ALCOA Inc. have worked a little over two years to iron out the details of the purchase. The dollar amount for the property, which was not disclosed, is to be paid over time.

The property is bounded primarily by Hall Road, Alcoa Highway, Hunt Road, Mills Street and Faraday Street.

Mikkel R. Anderson, a principal in International Risk Group, said the property is centrally located in Alcoa -- near the airport, Hall Road and the Greenway.

The slope of the property provides views of the Smokies on much of the land.

Light rail system

The property is on the conceptual route of a proposed light rail system from Atlanta to Knoxville and to McGhee Tyson Airport.

Alcoa City Manager Mark Johnson said the theory behind this conceptual route is to use the old railroad line that ran from the Norfolk Southern track at the U.S. 129 Bypass and Alcoa Highway split to the West Plant.

For nearly seven decades this property was productive for the city of Alcoa when the West Plant was a viable portion of the aluminum-producing ALCOA Inc., Anderson said.

Kinsey said it is located next to "one of Tennessee's greatest school systems." Alcoa High, Middle and Elementary adjoin or are very near the site.

A 10-year minimum build-out is anticipated for the project.

"We're building a downtown. We see this as the social and economic core for Alcoa. We're going to encourage it as a pedestrian-based environment. We see this as a city," said Kinsey, a former mayor of Chattanooga.

Uses anticipated for the development include various types of residential, office, hotel and medical.

"We are committed to doing a quality development," he added. The infrastructure will not be installed at once, but built as needed for tenants.

Location 'unbelievable'

"We've been looking at this property almost 10 years," Johnson said. "This is one of the most important pieces of property, not just in the Knoxville area, but in any urban area. The location is just unbelievable.

"As the design plans for this development begin to formalize, we think there is a likely potential to create an urban environment currently not present in the City of Alcoa. Most of the dense development in the city is along road corridors or in linear strips of development. With a new urbanism type design template, we are encouraged that some type of new town center may emerge from the process. The city has had staff working toward this goal for a decade; we are looking forward to the various design options the development team will generate."

He said a lot of people are looking for multi-use developments. Zoning will be done in phases.

"We're going to take our time. We're going to do it right," Johnson said.

A similar project designed by the developers is Overton Park in Orlando, Fla.

The project is expected to provide employment for thousands.

Kinsey said ALCOA did a good job of removing the West Plant and that a couple of spots that may be environmentally sensitive will be isolated, capped and covered up, probably under parking lots.

He expects development "to start off Hall Road because the best access is at that point."

Summer 2010 start

Johnson said the next step will be finalizing the master plan. The earliest he expects construction to start is summer 2010.

Any type of use can be incorporated into the property, Kinsey said.

On behalf of ALCOA Inc., Community Relations Manager Christy Newman said, "We are pleased that the site of the former West Plant will once again be a positive source of jobs and investment for the community through its reuse and redevelopment.

"When ALCOA began searching for a development partner for the property two years ago, we were looking for someone with the vision, skills and experience to tackle this project. We are confident we found the most qualified group in Airport Center Development Partners, and that they, working in collaboration with the city of Alcoa, will carry out this project in a manner in which the entire community can take pride in," she added.

IRG is a Denver, Colo., based development company that operates throughout the U.S. and abroad. The company specializes in transforming former industrial sites into new and productive commercial uses.

KPH is a Chattanooga-based firm with a diversified development background. The company has successfully completed several projects in the Knoxville area, such as the Market Square renovation, the Candy Factory condominiums, the recent Sunsphere renovation and the Residences at Market Square.