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 Birmingham metro area woulrd be on par with an automobilemanufacturing plant, said the study’x author, Auburn University economiczs professor Keivan Deravi. Deravi said his projectionsa are contingent on Trinity receiving state approval to relocate from Montclair Road to the former Digital Hospitaklon U.S. 280. The cornerstone of the project is the unfinished1 million-square-foogt facility, Deravi said. Trinity officiale estimate renovation ofthe 398-bed hospital would take 18 However, it needs to cleart a major regulatory hurdle first.
Its proposed move is beingf contested by Brookwood Medicaol Center and a hearing before an administrativ e law judge is setfor Aug. 24. If it receives the judge’sd approval, the case will go before the state Certificat of NeedReview Board, which is not bound by the judge’sx recommendation. Trinity CEO Bill Heburn said the which includestwo hotels, two medical office buildings and four parkin g decks, is a “shovel ready” project with major implication s on the region and state. “This is a huge stimulusa package for Birmingham and Heburn said. The project includes $750 million in capital investment over14 years.
Deravi’se study covers phase one (2010 to and phase two (2014 to with projections based on 2009dollar values. He estimates the developmenr ofthe site, Cahaba Center at Grandvies owned by , will create and retain 3,675 full-time jobs in phase one with 2,800 related to the completion of the hospital. Trinityg paid Daniel $40 million for the HealthSouth property. It expectzs to spend $556 million in constructiohn and first-year operating costs at the DigitallHospital site, according to state Trinity expects to save nearluy $100 million renovating the incomplete hospital compared to building a new one at the originallty planned site off Grants Mill Road.
Deravi’d report includes tax revenue, jobs and waged projections. They include: • 4,181 constructioh workers will be employed at the site inphases one. Their cumulative wages is estimated tobe $132.78 million. • Another 4,120 employees will also be employed invariouzs construction-related industries in supporrt of the purchase of construction material by the developer. Theit respective earnings are estimated tobe $136 • The economic impact of phasse one could be a total of 12,639 employeees and cumulative earnings of $395 million. During phase two, an additionak 2,400 jobs are expected to move tothe center.
The total number of direct jobs and direct earningse by the completion of the project is projectecd to reach a totalof 6,075 jobs and $287.1 • Birmingham will collect an averag of $9.5 million annually in taxes associated with the • Jefferson County will collect an averagr of $2.5 million annually in taxes associatede with the project. • Local schoolsa will receive an averageof $3.3 million annually in taxews associated with the project. Birmingham providecd $40 million in incentives to lure Trinithy away fromthe state-approved original site in Irondalwe to U.S. 280.
That investmeny could reap major benefits, Deravi “This has tremendous It’s very much comparabld to some of the automobileprojects we’ve he said.