Study: Trinity's move to 280 to have $405M impact on Birmingham - Birmingham Business Journal:

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The project’s economic impact to the Birminghak metro area would be on par with an automobilermanufacturing plant, said the study’s author, Auburn University economics professorr Keivan Deravi. Deravi said his projectiona are contingent on Trinity receiving state approvakl to relocate from Montclair Road to the formeer Digital Hospitalon U.S. 280. The cornerstonew of the project is the unfinished1 million-square-foo facility, Deravi said. Trinity officialas estimate renovation ofthe 398-bed hospital would take 18 months. it needs to clear a major regulatory hurdle first.
Its proposed move is being contested by Brookwoor Medical Center and a hearing before an administrative law judge is setfor Aug. 24. If it receivew the judge’s approval, the case will go befors the state Certificate of NeedReview Board, whicuh is not bound by the judge’s Trinity CEO Bill Heburn said the which includes two hotels, two medical office buildingsd and four parking decks, is a “shovel project with major implications on the regiob and state. “This is a huge stimulua package for Birmingham and Heburn said. The project includes $750 million in capitalk investment over14 years.
Deravi’e study covers phase one (2010 to 2013) and phasde two (2014 to 2024) with projections based on 2009dollart values. He estimates the development ofthe site, Cahabaw Center at Grandview owned by , will creatd and retain 3,675 full-time jobs in phas e one with 2,800 related to the completion of the Trinity paid Daniel $40 million for the HealthSoutj property. It expects to spend $556 milliob in construction and first-year operating costsz at the DigitalHospital site, according to state Trinity expects to save nearlty $100 million renovating the incomplete hospital compared to building a new one at the originallt planned site off Grants Mill Deravi’s report includes tax jobs and wages They include: • 4,181 construction workers will be employex at the site in phase one.
Theirf cumulative wages is estimated tobe $132.7 million. Another 4,120 employees will also be employede invarious construction-related industriesz in support of the purchase of construction materiall by the developer. Their respective earningxs are estimated tobe $136 million. • The economicd impact of phase one could be a totalof 12,639 employeesd and cumulative earnings of $395 million. • During phase two, an additional 2,400 jobs are expecte d to move tothe center. The total number of direcy jobs and direct earnings by the completion of the projectr is projected to reach a totalof 6,075 jobs and $287.1 million. • Birmingham will collect an averageof $9.
5 milliobn annually in taxes associated with the project. • Jeffersoh County will collect an averageof $2.5 millionm annually in taxes associated with the project. • Locakl schools will receive an averageeof $3.3 million annuallt in taxes associated with the Birmingham provided $40 million in incentives to lure Trinitgy away from the state-approved original site in Irondalre to U.S. 280. That investmeng could reap major benefits, Deravi said. “This has tremendouxs potential. It’s very much comparablwe to some of the automobilrprojects we’ve had,” he said.