Birmingham Development News

[Randy Sandford]

Originally Posted by | BRAVO |

Fun! Did you enjoy your trip?

Definitely. I shot 1,499 photos. Spent last night selecting the best shots (eliminated about 1/3) and will be busy editing those pics this week to share in the forum ASAP.

[10101000]

Originally Posted by Randy Sandford

I'm here now. Just got back from a 6-day trip to Chicago last night.

Did you take pictures?

[10101000]

Ok never mind!

[| BRAVO |]

GREATER BIRMINGHAM TRANSPORTATION

Birmingham City Council approved spending for transportation hub but put the brakes on street cars for downtown.

Widening of I-65 to eight lanes from 16th Street North to 41st Avenue continues in preparation for the planned I-22 Interchange. Completion of the interchange
is anticipated for 2011. ALDOT let the costruction of I-22 to within 400 feet of I-65 in May.

Five miles of I-65 from Valleydale Road to Shelby County 52 is scheduled to be widened to eight lanes at an estimated cost of $68.8 million.
A second interstate section from Shelby County 52 to U.S. 31 is scheduled to begin in 2009. That three-mile section will also be widened to eight lanes at an estimated
cost of $40.7 million.


BIRMINGHAM-SHUTTLESWORTH (???) INTERNATIONAL AIRPORT
Airport officials hope to begin construction this year of $194 million in renovations. The terminal upgrade calls for a centralized security checkpoint area,
a new concourse for future international flights and improvements in baggage screening devices and claim area, food and retail concessions, and parking deck
elevators will be included.

Also, Langford approached airports officials about changing the name of the airport to honor civil rights leader Rev. Fred Shuttlesworth. The change has yet to be approved.



UAB
Construction of the Campus Green project continues and includes a belltower/beacon.
The tower is expected to be around 112ft tall and have a golden-metallic cap.




SOLVAY PHARMACEUTICALS INC
Rumors were that Solvay Pharmaceuticals Inc. chose Birmingham over competing cities to build a $300 million flu vaccine plant. There has yet to be an official announcement



BROOKWOOD PHARMACEUTICALS
Brookwood Pharmaceuticals Inc. plans to invest $40 million to set up a pharmaceutical manufacturing and training facility at the former Saks Inc. headquarters off Lakeshore Parkway



JEFFERSON METROPOLITAN PARK LAKESHORE

Southern Company announced plans for an office facility that covers 72,000 to 75,000 square feet at a site in Jefferson Metropolitan Park Lakeshore in the Oxmoor Valley.

Blue Cross announced plans to build data center at JeffMet industrial park. The 55,000-square-foot data center is expected to be occupied in 2010



BASS PRO SHOP - LEEDS
The development includes a more than the 148,000-square-foot Bass Pro store., a hotel and up to three restaurants, all next to a
35-acre public park managed and maintained by Bass Pro Shops. The store is still on course to open next November.

[| BRAVO |]

Well... that's it for my 6 month update. I enjoyed putting it together and will probably plan another for January.
My job makes me keep track of new construction around town - I'm not a complete construction junkie - yeah I am.

[Randy Sandford]

Originally Posted by | BRAVO |

Well... that's it for my 6 month update. I enjoyed putting it together and will probably plan another for January.
My job makes me keep track of new construction around town - I'm not a complete construction junkie - yeah I am.

Thanks for taking the time to provide the info!

[dfwtiger]

I was reading an article this morning where governor Rieliey was making a visit to some sort of robotics technology center. At $71 million, I think it may be a good investment considering that robotics will be used to make cars even if they are hybrid or battery operated.

I wish the state had a larger vision....one where the state become a leader in alternative energy....and all the parts that are needed to make it work. I could see the state working to promote the manufacturing of solar cells....wind turbines and parts......and the companies that advance the technology. These are good paying jobs...and ones that will probably out live gas powered automobile plants.

This would be great to replace the vacant steel industry sites in and around Birmingham.... I wish this was where we placing our focus on tax dollars for incentives....something that we help to secure our economic future....instead of relying on a technology that is quickly showing is limitation...being the car as a slave to gas prices.

[SpawnOfVulcan]

Originally Posted by dfwtiger

I was reading an article this morning where governor Rieliey was making a visit to some sort of robotics technology center. At $71 million, I think it may be a good investment considering that robotics will be used to make cars even if they are hybrid or battery operated.

I wish the state had a larger vision....one where the state become a leader in alternative energy....and all the parts that are needed to make it work. I could see the state working to promote the manufacturing of solar cells....wind turbines and parts......and the companies that advance the technology. These are good paying jobs...and ones that will probably out live gas powered automobile plants.

This would be great to replace the vacant steel industry sites in and around Birmingham.... I wish this was where we placing our focus on tax dollars for incentives....something that we help to secure our economic future....instead of relying on a technology that is quickly showing is limitation...being the car as a slave to gas prices.

What you were reading about was the planned robotics training center in Decatur at Calhoun Community College. This place is going to encompass quite a bit of robotics related interests.

[| BRAVO |]

I agree whole-heartedly. I wish our local and state leaders would take a more proactive stance on luring more innovative industry. I shutter to think if the bottom absolutely falls out of the SUV industry and Honda and Mercedes make dramatic cuts - that would devastate our local auto suppliers.

Our abandoned steel sites would make an excellent site for researching / manufacturing alternative fuel types or several other industries for that matter. While I'm excited the Lakeshore corridor is booming - it seems wasteful to develop unspoiled lands while brownfields are available west and north of the city. Who's place is it to clean up contaminated brownfields anyway?

Also, I will acknowledge the progressive development of UAB over the last 30 years has been huge for Birmingham and I believe we are just beginning to see the positives affects - we just need to push harder to see it fluorish.

[Bogue]

Brownfields usually require demolition and sometimes even decontamination in addition to the basic sitework. Probably why they pick the new locations instead. Those areas are also in safer parts of town, usually. It may suck short-term, but it may ultimately be in the best interests of the city of B'ham to offer incentives to companies to assuage those costs (or just clear the site itself).

I think that the state also does devote resources towards alternative energy sources. There has been investment in biofuels facilities and there's tons of research into alternative fuels done at both Auburn & Alabama. I recall seeing a lot of stuff about fuel cells at UA back in the late 90's. There's an incentives package to put solar panels on your home. Lots of stuff out there. More can always be done, of course, but it has to be sold to the taxpayer and funded by a legislature that's not always on the same page (note extreme sarcasm).

[dfwtiger]

Originally Posted by Bogue

Brownfields usually require demolition and sometimes even decontamination in addition to the basic sitework. Probably why they pick the new locations instead. Those areas are also in safer parts of town, usually. It may suck short-term, but it may ultimately be in the best interests of the city of B'ham to offer incentives to companies to assuage those costs (or just clear the site itself).

I think that the state also does devote resources towards alternative energy sources. There has been investment in biofuels facilities and there's tons of research into alternative fuels done at both Auburn & Alabama. I recall seeing a lot of stuff about fuel cells at UA back in the late 90's. There's an incentives package to put solar panels on your home. Lots of stuff out there. More can always be done, of course, but it has to be sold to the taxpayer and funded by a legislature that's not always on the same page (note extreme sarcasm).

I agree. However..selling to the public is easy.....

Example:
500 - 1000 new jobs
$52,000 average salary for new employees

If it is a pv cell factory...wind turbine factory...biofuel...or bed linens....I doubt few will be concerned about offering an incentive.

I have a feeling that history will repeat its self in the south. In the 50's and 60's...we became the hotbed for relocation of textiles to the south from the north. The promise of new jobs and life to dying towns was great. Now, most of these jobs have moved again. Now...we are looking at a relocation of auto from the north to the south. Could history repeat? Should we think larger...with an eye on diversity?

It appears to me that we will go out of our way to court new industry...but we are lacking when it comes to the promotion of our best home grown industry.....UAB..and our university system in general. As for UAB...many cities/states would love to have this economic impact. I just wish we spent the money on existing industry like we have spent on the auto industry.

Can someone post a stat of the direct and indirect economic impact or UAB vs. the auto industry?

UAB

All I can find is a stat from 2003...It reads as follows:
"The economic impact of UAB on the surrounding community reached a record high of $2.9 billion for fiscal year 2003. Since FY 2001, the overall impact increased by an estimated 15.5%, or nearly $400 million, according to the new Economic Impact Report prepared by the UAB Department of Finance, Economics and Quantitative Methods. UAB’s impact on the state reached $3.2 billion in 2003, up from $2.7 billion.
As the largest employer in the metropolitan area, UAB generates 52,900 full-time equivalent jobs. This means that 8 of every 100 jobs in the Birmingham area and 2.8 of every 100 jobs in the state are related to UAB. The Institution can be credited with generating approximately $1.14 billion worth of local income. "

If we were approached by a company that was looking to relocate to Alabama....and promised this kind of impact....What do we think the state would provide in incentives?

[| BRAVO |]

I found this article for the southeastrebusiness.com. It gives the economic impact of the automotive industry for the entire state but not Birmingham.

CITY HIGHLIGHT, MAY 2007

BIRMINGHAM CITY HIGHLIGHTS
John Coleman, Steve Ankenbrandt, and David Ashford Jr.

The total economic impact for the state is 44,834 direct jobs and 79,356 indirect jobs with a payroll of more than $4.8 billion. The Birmingham metropolitan area is home to 84 companies or 32 percent of Alabama’s automotive supplier network. Birmingham automotive leases of note include MBUSI’s 518,000-square-foot build-to-suit project in 2005, Decoma, a division of Magna International’s lease of 120,000 square feet, Ogihara’s lease of 80,000 square feet and the AGC Glass lease of 85,000 square feet.

All I was able to find for UAB is... "economic impact for Birmingham exceeds $3billion."

http://main.uab.edu/show.asp?durki=699#impact

[| BRAVO |]

This is a good read.

By Jeff Hansen
Birmingham News staff writer

Simple math shows how a research university can grow the economy, says Richard Marchase, vice president for research and economic development at the University of Alabama at Birmingham.

It costs about $1 million to recruit a top researcher -- money paid not as salary but spent for lab space, equipment and the transition of that researcher's laboratory group to Birmingham.

Think of that as seed money.

For that investment, the researcher brings along 8, 10, 12 or even 15 members of the research group, along with a continuing stream of grant and contract dollars from outside sources like the National Institutes of Health.

"Each researcher will generate a million dollars a year -- half of that in salary -- for as long as they're here," Marchase said. And that doesn't include the possible future gains from patents, licenses or start-up firms.

Already Alabama's largest employer, UAB is one asset -- unlike corporations that could merge or move headquarters -- that is certain to remain in the city of Birmingham.

But UAB could be much more.

Marchase and UAB President Carol Garrison want to raise and spend a half-billion dollars over five to 10 years to vault UAB to a higher plane of research.

That's what they say it will take for UAB to recruit and retain 150 new, top-level researchers. The rough use of the $500 million, Marchase said, would be: $150 million for the start-up recruiting funds for 150 researchers, $250 million for new laboratory buildings and renovating older research buildings, $50 million for major equipment purchases and another $50 million for program initiatives.

Birmingham can learn from what other states are doing.

A recent Arizona State University white paper says Arizona's competitor states are making "very substantial investments to increase the research capacity of their systems of higher education. Arizona's choice is simple -- invest or get left behind in the competition for economic prosperity."

That Arizona State study said a $185 million investment to build new research space would:

>>> Immediately create $330 million in local economic impact though construction jobs and $15 million in tax revenue.

>>> Allow Arizona State to attract and conduct new research totaling at least $50 million a year, which would produce an economic impact of $250 million each year.

At the University of Louisville, where Garrison was provost and interim president before coming to UAB, the state directed the school to become a pre-eminent research university and gave $100 million between 1998 and 2003 to fund endowed chairs for top researchers, said President James Ramsey. The University of Louisville raised $100 million from private donors for the required one-to-one match.

Another $200 million from the state's so-called "Bucks for Brains" program went to the University of Kentucky, that state's top research university.

Bucks for Brains money helped the University of Louisville more than double its endowed chairs to 121, triple its number of patents and licenses and boost federal research funding five-fold to more than $74 million a year.

After adding researchers, the university then needed more research space. The legislature provided $125 million to build a 300,000 square-foot research building that will have five floors of labs when it opens in 2009.

"That will be the biggest research building in Kentucky," said Ramsey.

Alabama is a slightly larger state, in terms of the economy, than Kentucky, and UAB is its major research university , with grants and contracts from outside the state that total $400 million.

With investment, Marchase and Garrison say they can double that to $800 million a year.

E-mail: jhansen@bhamnews.com

[| BRAVO |]

While we are discussing the automotive industry - I wonder if Isuzu has plans to rekindle their plans for an assemble plant in Pinson Valley?

[SpawnOfVulcan]

Wow, about that article about UAB. I hope they get all that. UAB needs to be pushed to a higher level. It's already at a high level, but it could be SO MUCH more. UAB is in my opinion the greatest asset to Birmingham.

[Bogue]

I would agree that UAB is B'ham's greatest asset. It takes up a significant portion of downtown. The function of educating the workforce (and thus upping the income level of those people) is probably the biggest impact, though.

[dfwtiger]

I wish that the state would give a similar incentive/investment to the one given to Thyssen Krupp. I have a feeling that we would get a bigger return on the investment at UAB. It is time for the State of Alabama to take UAB seriously....instead of taking it for granted.

[Bogue]

TK will have a much bigger impact than you're giving them credit, IMO, but I understand your desire for investment there.

[dfwtiger]

Originally Posted by Bogue

TK will have a much bigger impact than you're giving them credit, IMO, but I understand your desire for investment there.

I agree, I think the impact could be interesting. However, TK can close...go out of business....or move in 20 years. For the most part,this is not the case with a university. I think that is why the state takes advantage of the situation. Do not need to invest if the following is true? YES

It's public...not private
It's not going to move
It's not going to go out of business

I think this is the mindset in Montgomery. Although the items listed above may be mostly true...it does not prevent the state from making better investments in our universities.....the better the research facilities....the more employment....and the more money put into the local economy.

[| BRAVO |]

This is not unique to Birmingham - Mobile has great universities that would benefit greatly from a cash infusion. We simple live in a state that does not value education or recognize the potential returns.