Hoover city officials unveiled a $241 million plan on September 22, 2025, to revitalize the struggling Riverchase Galleria, proposing demolition of vacant anchors like Sears—and possibly Macy’s—to make way for 542 apartments, a 1,100-seat performing arts center, and expansive public plazas.
“The performing arts center would be the city’s figurative ‘stake in the ground,’” said Steve Haemmerle, EVP of Hunden Partners, highlighting the site’s potential.
With annual sales tax revenue down from $9.2 million in 2007 to $5.4 million in 2024, the project raises urgent questions about the future of retail, community life, and Hoover’s economy.
Once Alabama’s Retail Powerhouse
Opened in 1986, Riverchase Galleria drew over 15 million annual visitors and spanned 1.9 million square feet, making it the largest mall in the state. Vibrant parking lots and bustling corridors marked weekends, attracting shoppers from across Alabama.
Yet time has reshaped both shopping habits and the mall’s fortunes, signaling an urgent need for change.
Foot Traffic Plunges 33%
From 2019 to 2024, visits dropped from 6.3 million to 4.2 million annually. Safety concerns and the rise of online retail accelerated the decline. One shopper told ABC 33/40, “This has just changed so much from when I was growing up… just safety wise.” The sharp drop set the stage for Hoover’s ambitious redevelopment plan.
$75 Million Lost In Revenue
Hoover’s municipal finances took a hit with mall sales tax income falling from $9.2 million in 2007 to $5.4 million in 2024. That’s over $75 million in lost revenue. City leaders cite this shortfall as a key driver for the Galleria overhaul, linking fiscal necessity directly to redevelopment urgency.
Vacant Anchors Highlight Trouble
Sears closed in 2019, leaving 131,000 square feet empty, while Macy’s, the state’s last, went on the market in August 2024. Together, these anchor vacancies created a visible void in the mall’s center, prompting city planners to consider radical options to fill both physical and economic gaps.
$240 Million Vision Emerges
Hunden Partners’ two-phase plan aims to demolish Sears and possibly Macy’s, replacing them with 542 apartments, a 1,100-seat performing arts center, and nearly an acre of public plazas. Phase One alone involves an $85 million private construction investment. This strategy pivots the site from traditional retail toward residential and civic life.
Bulldozers Target Aging Retail
Demolition of Sears is underway, clearing space for apartments and cultural venues. If Macy’s closes, Phase Two will add another 260 apartments. The city’s plan signals a bold shift—transforming retail decline into urban density while retaining limited shopping options.
Apartments Will House Over 1,000 Residents
With 542 new units, the redevelopment is expected to accommodate approximately 1,080 residents. Plans include townhomes, senior housing, and market-rate apartments. Designers emphasize walkability and green spaces, turning the former mall into a multi-generational community hub that blends living, culture, and recreation.
Memories of a Busier Era
Longtime patrons recall bustling corridors and weekend crowds. Shopper James Wallace said, “There are items that I need at some stores that I don’t have to resupply very often so I don’t need to go very often.” The redevelopment aims to replace lost community energy with new civic life through the arts center and public gathering spaces.
Redevelopment Study Spurs Debate
Mayor Frank Brocato called the $200,000 study “a road map” for recovery, projecting $9.2 million in tax revenue over ten years and 156 full-time jobs. Councilor Steve McClinton called the report “underwhelming,” saying, “We can use it as a baseline, but the amount of money I would hope to have a lot more deliverables than we had.” The debate underscores the high stakes surrounding Riverchase’s future.
Arts Center as Cultural Magnet
The planned 1,100-seat performing arts center will host concerts, plays, and events, generating an estimated $396 million in economic activity over a decade. Officials hope it will become a year-round draw, anchoring the redeveloped site and offsetting the loss of retail foot traffic.
High-End Residential Market
Apartment rents are projected to be over $2,000 monthly, targeting upscale residents. The mix of senior housing and market-rate units reflects Hoover’s desire to attract higher-income demographics, shifting the mall from a traditional shopping destination to a modern urban village.
Infrastructure Investments Loom
Hoover may spend up to $15 million upgrading roads, utilities, and public spaces to accommodate the redevelopment. While expensive, officials argue it’s necessary to sustain the projected population growth and public amenities, effectively turning lost revenue into long-term urban investment.
Political Tensions Surface
Mayor-elect Nick Derzis criticized the study for limited scope, while Councilor McClinton called it “underwhelming.” The study indicates that public funding such as tax rebates and city investment would be critical to get the redevelopment started, with financial feasibility gaps of $2 million for Phase One and $13 million for Phase Two.
National Trends Influence Local Action
With 20–25% of U.S. malls projected to close in five years, Riverchase serves as a test case for suburban mall transformation. Lessons from Colorado’s Belmar project show mixed-use redevelopment can successfully replace declining retail centers with thriving neighborhoods.
Macy’s Closure Could Make or Break Phase Two
Phase Two hinges on Macy’s status, last store in Alabama. Its sale listing since August 2024 creates urgency. Developers must align multiple property owners to move forward. The timing and final decision will determine the full scope of the mall’s transformation.
Seniors Attracted To Walkable Life
About 120 units are designed for empty-nesters and retirees seeking community living over large yards. The shift highlights demographic changes and raises questions about affordability, balancing high-end living with diverse population needs.
Public Spaces Replace Vacant Corridors
Plans include nearly one acre of plazas and green spaces designed for community use. These areas aim to bring back foot traffic and foster connections that retail once generated, turning circulation areas into gathering spots.
Mixed-Use Experiment Could Set Precedent
Cooper Carry, known for similar projects in Houston and New Jersey, applies lessons learned to Riverchase. If successful, this redevelopment could guide other struggling malls in Alabama and across the Southeast, reshaping regional approaches to aging retail properties.
Arts and Housing Drive Economic Revival
The combination of residential units and the performing arts center is projected to generate lasting economic benefits, including new spending and job creation. Developers hope this model demonstrates that malls can be reimagined as community and cultural hubs, not just shopping centers.
Riverchase’s Transformation Marks A New Era
Riverchase Galleria’s corridors may be quieter, but the mall’s story is far from over. With 542 apartments, a 1,100-seat performing arts center, and expanded green spaces, Hoover is redefining its urban core.
The $240 million redevelopment reflects a bold bet on mixed-use living, culture, and community revitalization. While Macy’s fate still looms, the project offers a blueprint for struggling malls nationwide. The final question remains: will this vision succeed in reshaping Alabama’s retail and residential landscape?