Fairhope City Council approves US$6.1M renovation of historic K-1 Center; building to transform into tech business incubator led by Hatch Fairhope

May 13, 2025 (Alabama Media Group) –

A century after its doors first opened to students, Fairhope’s historic K-1 Center is on the brink of a bold new chapter.

Once a vibrant elementary school serving generations of Fairhopians, the brick-façade schoolhouse—long abandoned and weathered by time—will soon be home to tech startups, entrepreneurial energy, and community collaboration. The Fairhope City Council on Monday approved what Mayor Sherry Sullivan called “monumental” agreements to transform the 1925 landmark into a business incubator led by Hatch Fairhope.

“Our community has long cherished this landmark, and now, through our partnership with (the Baldwin County Economic Development Alliance ) and Hatch, we are excited to transform this space into a center for education, mentorship, and entrepreneurial collaboration – ensuring it continues to serve and inspire for generations to come,” said Sullivan.

The Council’s actions include:

Funding for the project is coming from a mix of $3.5 million in federal and state grants and $2 million from Innovate Alabama, secured by the Baldwin County EDA in partnership with Hatch Fairhope.

Lee Lawson , president & CEO of the Baldwin County EDA, emphasized the significance of the effort: “This is the culmination of a lot of work by the mayor and the city council, and other partners including us with Hatch bringing in multiple funding sources to the table to renovate a historic building in Fairhope that has sat idle for the past nine years.”

Lawson called the project “truly impactful,” positioning it as a long-term asset that will bolster Fairhope’s downtown and support the city’s emerging technology sector.

Related content: From 100-year-old schoolhouse to tech hub: Fairhope finally eyes start of K1 Center renovation

The future K-1 Center, with Hatch Fairhope operating inside it, will be comparable to the Innovation Depot in Birmingham . The closest example to a similar venue in coastal Alabama is the Innovation Portal on St. Louis Street in downtown Mobile.

“This will have maximum impact to continue the vibrancy of downtown Fairhope and to the community and our region as it relates to tech entrepreneurs,” Lawson said.

One of the reasons for the delay in getting the project started was related to a lengthy analysis of the schoolhouse by the Alabama State Historical Commission .

Portions of the K-1 Center property are already in use. The city, in 2021, approved a lease agreement with the Fairhope Educational Enrichment Foundation (FEEF) for a portion of the property for $1 per year for 25 years. In return, FEEF sought grants to renovate buildings on the northern end of the property to support Science, Technology, Engineering, Arts and Math (STEAM) programs for students.

City officials may utilize the entire property someday for other developments. Sullivan has said that a master plan could be pursued on what to do with the entirety of the property surrounding the school that might include the development of a performing arts center.

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