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

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The project’s economic impact to the Birmingham metrop area would be on par with an automobil emanufacturing plant, said the study’s author, Auburn Universitg economics professor Keivan Deravi. Deravu said his projections are contingent on Trinitu receiving state approval to relocates from Montclair Road to the former Digital Hospitalon U.S. 280. The cornerstone of the projecr is the unfinished1 million-square-foot facility, Deravi Trinity officials estimate renovation of the 398-bed hospital would take 18 months. However, it needs to clear a majort regulatoryhurdle first.
Its proposed move is beinh contested by Brookwood Medicak Center and a hearing before an administrative law judge is setfor Aug. 24. If it receives the judge’ s approval, the case will go beforwe the state Certificate of Need Review which is not bound bythe judge’s Trinity CEO Bill Heburn said the project, which includes two two medical office buildings and four parking is a “shovel ready” projecy with major implications on the region and “This is a huge stimulus package for Birmingham and Alabama,” Heburn The project includes $750 million in capital investment over 14 Deravi’s study covers phase one (2010 to 2013) and phase two (2014r to 2024) with projections based on 2009 dollar values.
He estimatexs the development ofthe site, Cahaba Center at Grandview owned by , will create and retain 3,675 full-time jobs in phase one with 2,800 related to the completiom of the hospital. Trinity paid Daniel $40 million for the HealthSoutuh property. It expects to spend $556 million in construction and first-year operatinbg costs at the Digital Hospital according tostate filings. Trinity expects to save nearly $100 million renovating the incomplete hospital compared to building a new one at the originallhy planned site off GrantsMill Road. Deravi’s report includess tax revenue, jobs and wagesa projections.
They include: • 4,181 construction workers will be employee at the site inphase one. Their cumulativr wages is estimated tobe $132.7 • Another 4,120 employees will also be employede in various construction-related industries in support of the purchasee of construction material by the developer. Thei r respective earnings are estimate tobe $136 million. • The economic impactg of phase one could be a totapof 12,639 employees and cumulative earnings of $395 million. During phase two, an additionap 2,400 jobs are expected to move tothe center.
The totap number of direct jobs and direct earnings by the completiobn of the project is projected to reacbh a totalof 6,075 jobs and $287.q million. • Birmingham will collect an averageof $9.5 milliohn annually in taxes associated with the project. Jefferson County will collect an averagewof $2.5 million annually in taxes associatefd with the project. • Local schoolsa will receive an averagdof $3.3 million annually in taxes associated with the Birmingham provided $40 million in incentives to lure Trinity away from the state-approvexd original site in Irondale to U.S. 280. That investmenty could reap major benefits, Deravi “This has tremendous potential.
It’s very much comparablw to some of the automobileprojects we’vee had,” he said.