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NATCHEZ — In an effort to spur retail development, city officials have agreed to cut the selling price and build an access road on a parcel of property near Walmart on Seargent S. Prentiss Drive.

In return, developers have until February 2026 to finalize the purchase and pay the $4 million cost to move the intersection.

The Mayor and Board of Aldermen agreed to the terms during an executive session Tuesday evening, extending the option with Horne Development Group until Feb. 15, 2026. City officials dropped the price of the parcel from $3 million to $1.85 million and agreed to build the $1.3 million public access road.

“This agreement is regarding the proposed sale of land the city has been mandated to sell by an action of the Mississippi Legislature in 2016,” Mayor Dan Gibson said. “The city-owned parcel was part of a plan orchestrated by the city, state and federal leaders many years ago for a proposed path for completion of the Natchez Trace.”

The Natchez Trace eventually took another path and the land has been in limbo since.

“The state Legislature has required that it be sold and the proceeds be shared with the Mississippi Department of Archives and History and the National Park Service,” Gibson said.

An amendment to the city’s option with Horne Development Group approved Tuesday night includes a reduction in the sales price of the property — from $3 million to $1.85 million.

“This has been made necessary in order for the capital stack for the new developer to work,” Gibson said. “We are grateful that Horne continues to be interested in developing this land for future retail. They are a proven company with a track record of many commercial developments all over the South.”

Representatives of neighboring Walmart have chosen not to allow access through that parking lot, which leaves the city parcel landlocked for any reasonable commercial purposes, Gibson said.

“We are grateful that some months ago, MDOT approved the city’s request to move the intersection northward to allow for a new access road to be developed into this development and also for the purposes of creating a new access for Walmart,” he said. “What the city has agreed to do is build a new public access road on city-owned property. It will provide access to Walmart and the new development and will run along the northern side of the existing drainage facility that runs between the two properties.”

In turn, Horne Development has agreed to bear all expenses of moving the intersection northward.

“We can’t afford to build a public access road and move the intersection at the same time,” he said.

Preliminary estimates put the cost of the new intersection at approximately $4 million. The cost of building the access road will be approximately $1.3 million, according to early estimates.

The city is seeking a $1 million grant from the Delta Regional Authority’s Community Infrastructure Fund to pay for the bulk of the creation of the public access road. The remaining amount will be paid for by the city’s share of the proceeds from the sale of the property.

“The MDAH has said they will spend their proceeds on improvements at the Grand Village and the National Park Service is likely to spend their portion on park projects within Natchez,” Gibson said. “This is a win-win-win for Natchez.”

Officials and developers have been working to promote Natchez as a retail hub for “many months,” Gibson said. He said that new research is what prompted Horne to make concessions in the deal, like footing the bill for the intersection construction.

“Our research shows that Natchez is experiencing over $200 million in retail leakage to other markets around us. This has been verified by the rapid success of getting Trace Town up and going. Retailers unable now to get space in Tracetown have begun negotiating with us for space at this new development. This is exciting. It’s historic for Natchez and we can’t wait to get it done.”

Horne Development Group has until February to get all plans in place, Gibson said.

“Obviously, we have to design and bid the project, and it also gives time for all contracts to be finalized with these very solid prospective retailers. Included in this project will be retailers potentially bringing more jobs and sales tax generation than the ones coming to Tracetown,” Gibson said. “We are grateful to so many who have worked with us on this project. It’s been a lot of work. But it now sets Natchez on course to be the retail hub for our region. Our goal is that citizens will no longer have to go as far as Jackson, Baton Rouge and Alexandria, but rather those shoppers may very well be coming to us.”