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Why Cahaba Heights Went Fifteen Months Without a Grocery Store

August 13, 2026

Drive down Crosshaven Drive on any given Wednesday and you will pass a coffee concept getting ready to open, a tavern that swapped one Southern menu for another, and a dog groomer setting up shop in a strip center that has needed a tenant for a while. Keep driving and you will also pass a building that has sat completely dark since Winn-Dixie closed its doors there in May 2025. Weeds work their way through the parking lot seams. The sign is gone. For most of the past year, this was the biggest hole in the neighborhood's daily errand list, and everyone who lives nearby has felt it, whether that meant a longer drive for milk or a mental note to stop somewhere else on the way home.

Here is the part that did not show up in the neighborhood group chat: that empty building was not just inconvenient. It was, by the city's own accounting, one of the more financially important addresses in Vestavia Hills. And the reason it took fifteen months to find a fix has less to do with retail appetite for Cahaba Heights and more to do with how carefully the city had to structure a deal to get one specific kind of tenant back.

The Building That Was Worth More Empty Than It Looked

City Manager Jeff Downes has a term for what happens when a neighborhood loses a category of store it actually needs: leakage. It is money residents spend, but not here. When the Vestavia Hills City Council voted in June 2026 to approve an economic development agreement with Walmart for the old Winn-Dixie site at 3925 Crosshaven Drive, Downes framed the problem in exactly those terms.

"The leakage has become very great with the absence of that Winn-Dixie store."

That is not just a line about convenience. According to the city's 2024 financial audit, that Winn-Dixie was the tenth-largest source of sales tax revenue in Vestavia Hills. Mayor Ashley Curry put the stakes even more plainly, noting that grocery stores are the city's number one source of sales tax, full stop. So the empty building on Crosshaven was not just a gap in the neighborhood's shopping list. It was a gap in the budget that pays for the services the city runs.

A Rebate the City Isn't Paying Until It Works

Walmart is now under contract to buy the site and plans to demolish the existing building for a 45,000-square-foot Walmart Neighborhood Market, and the city agreed to rebate the company up to $3 million to make the math work on an aging, expensive-to-redevelop parcel. But the structure of that deal is worth understanding if you live within walking distance of it.

The city is not writing a check up front. Downes described it as a success fee.

"We don't want to take a risk of contributing money on the front end."

Walmart only gets the rebate after the store starts generating new sales tax revenue, and the city's own projections put that new revenue at more than $11.1 million over the next decade, which nets out to roughly $8.1 million after the incentive is paid back. For comparison, Vestavia Hills already has a Walmart Neighborhood Market elsewhere in the city, and Curry called it an outstanding investment for Vestavia Hills, adding that the city expects nothing less from the Cahaba Heights location. There is no construction start date attached to the vote yet, so the practical answer for anyone hoping to walk to a grocery store again is: soon, but not this month.

While the Anchor Sat Dark, the Storefronts Around It Filled In

Here is where the story gets more interesting than a single grocery store deal. The businesses that did not need a public incentive to bet on this stretch of road kept showing up anyway, in the storefronts immediately around the vacant Winn-Dixie.

  • Qahwah House, a Yemeni coffee concept from owner Khaled Almansoob, is set to open at 3965 Crosshaven Drive, sandwiched between Milo's Hamburgers and Cahaba Dermatology. Almansoob has described building a space meant for lingering, not the quick-turnover model of a typical coffee shop, with traditionally processed Yemeni coffee and drinks like qishr and adeni tea.
  • Miss Astrid's Tavern opened in the former home of The Fig, a longtime neighborhood restaurant that had closed. Chef Jessica Armstrong partnered with Denise Boley, owner of the nearby salon, and named the tavern for the late mother of one of the building's owners.
  • Caffe di Roma opened in December 2025 in a former Papa Murphy's space at The Bray, run by the same owner behind the long-running Napoli Pizza across town.
  • Scenthound, a dog bathing and grooming business with no boarding or veterinary services, was approved for a shopping center at 3155 Green Valley Road, joining sister locations already open in Greystone, Hoover, Trussville, and Mountain Brook.

None of these businesses required a rebate, a council vote on incentives, or a decade-long revenue projection. They just needed a storefront and a bet that people nearby would show up. That contrast is the real story here: public money moved for the one category of business the neighborhood structurally could not do without, while private money moved on its own for everything else.

Two Businesses That Didn't Need an Incentive to Believe in Crosshaven Drive

If you want proof that this corridor was never actually struggling for customers, look at who has stuck around the longest. Milo's Hamburgers, which has one location on Montgomery Highway and another right on Crosshaven Drive, is marking its 80th anniversary this year. A few minutes away on Dolly Ridge Road, Murphree's Market and Garden Center celebrated its 50th anniversary in June 2026. Gene and Kathy Murphree opened the market in July 1976 and still share ownership with their son, Brad, selling everything from Silver Queen corn to Georgia pecans out of the same family-run stand.

Two businesses do not stay open for fifty and eighty years in a neighborhood that is losing customers. What Cahaba Heights lost was one specific category, groceries, not general foot traffic. That distinction matters if you are trying to understand what actually happened here versus what it felt like from the driver's seat.

It is not only restaurants and retail moving in either. Steel City Law, the divorce and family law practice run by Shane Smith, relocated to Vestavia Hills this year after nearly a decade in Homewood, taking space at 512 Montgomery Highway. A law firm does not typically move on a whim, and its arrival is one more small signal that professional confidence in this stretch of the city has not wavered even while the grocery anchor sat empty.

The Streets Are Getting Wider Too

The city has not stopped at storefronts. Councilwoman Kimberly Cook, discussing the Walmart deal, pointed to the sidewalks, widened roads, and improved traffic flow the city has already funded along Crosshaven Drive, calling the district booming because of that investment. New landscaping is part of the Walmart redevelopment plan as well, which means the physical experience of driving or walking this stretch of road is set to look noticeably different by the time the doors open, regardless of exactly when that turns out to be.

For residents, the practical takeaway is this: the wait for a grocery store has been long and, if the current timeline holds, is not quite over. But it was never a sign that Cahaba Heights had lost its footing. It was a sign that one specific, financially important tenant left a hole the city had to fill carefully rather than quickly, while a dozen smaller businesses filled in around the edges without waiting for anyone's permission.

If you have questions about what any of this means for property values or timing in Cahaba Heights, or you are simply curious what a neighborhood in transition looks like up close, Brandon Smith Homes has been watching this corner of Vestavia Hills for a long time. Let's Connect.

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