A LETTER FROM THE CHAIR
Wow what a year 2008 has been - the economy, stock market, and elections to name a few! Through it all, Operation New Birmingham remained focused on its mission and objectives. As many of you know, the respective boards of the Birmingham Regional Chamber of Commerce and the Metropolitan Development Board voted to merge those two organizations. Many questioned whether ONB should be part of this merger. The same committees recommending the merger to the board of the Chamber of Commerce and the Metropolitan Development Board reviewed ONB. After careful study and consideration, the recommendation from the committees is for ONB to continue operations as an independent public / private partnership focused on downtown economic development and not to merge with the new entity.
The pace of development downtown accelerated as several important projects broke ground and most of the key indicators monitored by ONB show positive trends. Here are some of the highlights from 2008:
Office market occupancy exceeds 90%. The Wachovia Tower is the only large office building in the City Center that still has space for lease to a large tenant. ONB is working closely with the Mayor’s office of Economic Development and Governor Bob Riley’s office to encourage Wells Fargo, which acquired Wachovia in late 2008 to expand its presence in Birmingham.
Occupancy of condominiums, lofts and apartments in the City Center now stands at 94%. Sales of condominium units have slowed somewhat, however, interest in rental properties has increased as those interested in living in an urban environment seek alternatives. One particularly exciting project that opened in 2008 is Burger Phillips Lofts on 3rd Avenue North. Developer Tom Carruthers has given new life to another downtown landmark, creating 35 rental apartment units that offer sophisticated style and spectacular views of the City Center.
There is a great deal of activity taking place in mid-town. The Hyatt Place and Marriott Residence Inn Hotels have schedules for completion in the first half of 2009. Developer Robert Simon has broken ground on a huge project in the 100 block of 20th Street South. This $35 million development will include 256 rental apartment units and 22,000 sq/ft of retail space at street level facing 20th Street. Nearby, UAB is nearing completion of its new Women & Infants Hospital, and Children’s Health Systems has announced plans for a new $450 million Children’s Hospital.
Construction of the 700-space expansion of the city-owned parking deck on 4th Avenue adjacent to the former Regions headquarters building is progressing well with a completion date in 2009. In addition, heavy equipment is now moving earth at the Railroad Park.
Two downward trends that we are pleased to report are crime (down 62% since 1995 in the CAP District) and homelessness (down 20% since 2005). ONB continues working closely with CAP and other organizations to continue those trends.
As we move forward in 2009, we can anticipate a number of grand openings and dedications; however, we are also aware that a challenging economy is likely to affect the development of new projects. This will allow ONB’s small staff to focus on planning for several longer range aspects involved with implementing the City Center Master Plan such as Entrepreneurial District, the Civil Rights District and sites overlooking the Railroad Park.
Last year ONB began a partnership with Main Street, Urban Impact, Inc. and The Birmingham Resource Center regarding the City of Birmingham’s Loan Stimulus Program. Each organization meets regularly to discuss potential loans that are beneficial for the City Center and communities within the entire city.
Finally, I want to thank those ONB board members who completed their terms of service in 2008 as well as those who will continue to serve. I also express my heartfelt appreciation, and that of the ONB staff, to Dr. Neal Berte for his service as 2008 Board Chair. We are most grateful for the energy, leadership and vision he has dedicated to ONB.
Sincerely,
Gerald Johnson
Chair