The City of Gardendale appears to be holding its own financially in tough economic times, according to Mayor Othell Phillips.

The first-term mayor gave his annual state-of-the-city address at the Gardendale Chamber of Commerce monthly luncheon Thursday, and was encouraged by current empty retail space being filled, as well as a strip center’s expansion with new construction.

Developer Kerry McAdam said his Fieldstown Road shopping complex, to be renamed The Plaza, will soon welcome Sushi Village, a Japanese-flavored restaurant. It will replace a Mexican restaurant that recently closed.

Also McAdam will begin construction on land adjacent to The Plaza to make room for an addition of about 9,000 square feet.

Phillips could not reveal the name of the nationally recognized coffee shop that will anchor the new site on the west side, and other space is being marketed for possible tenants.

The former Food World location on Decatur Highway has been purchased and will become the new home for the police department and court space. The remaining store fronts will be available to generate rental income for the city, Phillips said.

City leaders said the latest U.S. Census documented a 19.5 percent growth rate, which requires a redrawing of all five districts to ensure an equal amount of residents. Phillips said the city’s population is now approaching 14,000.

Phillips also commended the administration of former Mayor Kenny Clemons for their decision to build the city’s popular civic center, which produces enough annual income to offset the costs of running the facility. It offers a wide array of fitness classes and room rentals that make it a financial asset, he added.

Phillips told the lunch crowd that he is running for re-election, and asked for voters’ support this fall.