City approves re-development project to support business start-ups
Birmingham, AL – The City of Birmingham approved a project funding agreement with Nextec, LLC, to redevelop and rehabilitate the approximately 65,000 square-foot Edwards Motor Company Building (former Sticks ‘N’ Stuff building) located at 1531 3rd Ave. North. The area will be leased for use as a flexible workspace and collaboration area for start-up businesses graduating from Innovation Depot.
“We are committed to supporting community redevelopment and strengthening our small businesses. This project does both,” said Birmingham Mayor Randall L. Woodfin. “This will be one more feather in the cap of the Fountain Heights community that is experiencing a rebirth.”
The City will provide $2 million in incentives in support of the project to be paid in five annual installments of $400,000 each, provided certain leasing milestones are met. The first installment of the incentive funding will come out of the American Recovery Plan monies and is an allowable use to stimulate the economy.
“We identified the old Sticks ‘N’ Stuff building as a prime asset in the civil rights district,” said Cornell Wesley, director of Innovation and Economic Opportunity. “The city is excited to support a catalytic investment that provides a landing space for these grads. While our investment is to ensure they have a place to go, a lot of the grads are not ready for brick and mortar. Where do they land? We want them to land here.”
The projected economic impact from sales, property, use, and occupational tax will be around $300,000. It is expected that 311 jobs over the next seven years will be generated.
Tquila Automation, intelligent automation specialists, has already shown interest, according to Wesley. The city has been working to recruit them to Birmingham.
“This double downs our efforts to recruit, retain and continue to develop our tech sector,” Wesley said. “This is a local play and regional play that shows Birmingham has something to offer.”
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