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The Peach State Federal Credit Union sits on land that is to become part of a 300,000-square-foot mixed-use development, which is expected to include a Publix grocery store and possibly other retail stores and condominiums. Photo by Robert Naddra

A mixed-use development that will be anchored by a 28,000-square-foot Publix grocery store is headed to Avondale Estates.

Century Retail, a Florida-based developer, sent a letter to the city three weeks ago stating that the project was back on track.

“The project started one or two years ago, but with the economic downturn and issues with banking and financing, it was put on hold,” said Avondale Estates City Manager Clai Brown. “Within 90 days we will know what happens next. They will let us know a timetable.”

In addition to the Publix, the 300,000-square -foot development will feature other retail stores with condominiums above the retail space, Brown said. There also are plans for a parking deck.

The development, which will be completed in three phases, fronts North Avondale Road and goes back to Franklin Street, Brown said. Land that includes existing buildings, such as the Peach State Federal Credit Union, will be part of the development.

The entire development will take three to five years to build out, Brown said. The only agreement with the developer right now is Phase I-A, which is the Publix. Phase I-B tentatively includes retail spaces and condominiums, and Phase II will be completion of the realignment of Franklin Street, plus more mixed use space.

“The addition of the Publix will be an excellent thing for all residents of Avondale and the surrounding area, including Scottdale and the outskirts of Decatur,” Brown said. “The development will be very pedestrian friendly.”

The development is part of a long-range downtown plan. The Publix development is adjacent to the vacant 13-acre Fenner Dunlop property. The Fenner Dunlop plant, which manufactured conveyor belts, closed about four months ago, Brown said.

“That property could tie together with the Publix development into a big downtown area,” Brown said. “That area will really blossom.”