Comprehensive Economic Development Strategy

RPCGB Mission:

“To serve as a catalyst for regional leadership, cooperation, and sustainability for Blount, Chilton, Jefferson, Shelby, St. Clair, and Walker Counties.”

2020 Annual Update Regional Planning Commision of Greater Birmingham

Comprehensive Economic Development Strategy Annual Update 2020

This document is posted at:

https://www.rpcgb.org/comprehensive-economic-development-strategy

For more information please contact:

Jesslan Wilson Marley Hicks Economic Development Specialist Economic Recovery Coordinator Email: [email protected] Email: [email protected]

2 TABLE OF CONTENTS

Section Page

Section I: A Year in Review...... 4 Employment & Growth Trends: 2019-2020...... 4 Recent Developments 2019-2020...... 5

Section II:Federal Funding Awards 2019-2020...... 6 Appalachian Regional Commission...... 6 Community Development Block Grants...... 6 Economic Development Administration...... 7

Section III: Growth Strategy Updates...... 7 Strategy 1: Empowerment and Implementation...... 8 Strategy 2: Infrastructure...... 8 Strategy 3: Improving Access To Opportunities...... 9

Section IV: Resiliency Initiatives...... 10 Economic Resiliency Strategies...... 10 Opportunity Zones...... 11

Figures and Tables: Table 1: AEMA Division-Hazard Mitigation...... 11

3 SECTION I : A YEAR IN REVIEW

The Economic Development District (EDD) staff at the Regional Planning Commission of Greater Birmingham (RPCGB) continues to work towards the goals outlined in the 2017 Comprehensive Economic Development Strategy (CEDS). This annual update summarizes the progress our region, which includes Blount, Chilton, Jefferson, Shelby, St. Clair, and Walker Counties in Central Alabama, has made towards combating area challenges and fulfilling regional needs. The entire CEDS document can be found on the RPCGB website at: https://www.dropbox.com/home/CEDS?preview=CEDS2017_Doc.pdf

EMPLOYMENT & GROWTH TRENDS: 2019-2020

Alabama’s unemployment rate was at a record low in September 2019 with a rate of 2.7 percent. However, this rate has grown substantially due to the coronavirus pandemic. As of September 2020, the state had an unemployment rate of 6.6 percent, an increase of nearly four percentage points. Similarly, the unemployment rate in the Birmingham-Hoover Metropolitan Area has also experienced increasing unemployment rates over the past several months, rising from 2.4 percent in September 2019 to 6.1 percent in September 2020.

In addition, the region currently has over 20,600 more unemployed individuals when compared to September 2019.1 The civilian labor force participation has decreased by nearly 5,000 people since September 2019, when the total labor force was up to nearly 560,000, a record-breaking indicator for the area.2 Every central employment sector laid out in the CEDS has experienced stagnant or declining growth in the last year. The major employment declines have been overwhelmingly concentrated in the Leisure and Hospitality Sector, which declined by nearly 19 percent since September 2019 and lost around 9,000 jobs. Other sectors have also been impacted by the loss of jobs, primarily Information, which dropped by over 15 percent employment, and Manufacturing and Logging, which declined by nearly 11 percent since 2019.3 The Transportation and Warehousing industry was the only employment sub-sector that experienced an increase in jobs, growing by 1,300 since September 2019, though the Transportation sector as a whole experienced job losses.4

Regarding the EDD six-county service area, all counties within the region have experienced higher unemployment rates when compared to September 2019. Most notably is Jefferson County, which had a 7.3 percent unemployment rate in September 2020, compared to 2.5 percent a year before. This is likely due to the concentration of job loss in the Leisure and Hospitality sector. The lowest unemployment rate increase occurred in Blount County, rising to 4.0 in September 2020 from 2.4 percent in 2019.5

1 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf 2 https://www.birminghambusinessalliance.com/regional-news-1/jobsnumbers 3 https://www.bls.gov/regions/southeast/summary/blssummary_birmingham.pdf 4 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf 5 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf

4 RECENT DEVELOPMENTS: 2019-2020

During the last year, several new developments have occurred in the Birmingham-Hoover Metropolitan area despite the economic impacts of the coronavirus pandemic, which began in March 2020. Forty-six new and existing businesses expanded across the Birmingham region in 2020, creating over 1,500 jobs and attracting an estimated $895 million in capital investment.1 Existing business are expanding to new locations throughout the region, and new companies are locating to the greater Birmingham area at impressive rates. However, manufacturing has continued to serve as a foundational piece of the Birmingham region’s economy, as a large portion of new and expanding businesses have been connected to the manufacturing sector.

Two notable developments within the region are within the City of Bessemer, located 15 miles southwest of the City of Birmingham. This city was selected as the site for a new Carvana distribution facility, and reports suggest this automobile distributor will create at least 450 jobs, with average salaries exceeding $35,000, and will generate over $46 million in capital investment.2 Bessemer was also selected as the location for the development of a bulk distribution center for Lowe’s, and this facility will replenish supplies for nearly 115 stores across the southeast. It is expected that this new facility will create between 150-200 new jobs for the area.3

However, the recent economic fluctuations caused by the coronavirus pandemic have negatively impacted employment in industry sectors throughout the region. Total non-farming employment for the Birmingham region has decreased by workers than any other metropolitan area in the state, declining by over 17,000 workers between October 2019 to October 2020. Service providing employment sectors comprised a large majority of the reduction, declining by 16,700 workers since October 2019. This loss was highly concentrated in the Leisure and Hospitality industry, which lost an estimated 9,000 employees over the course of the pandemic. This decrease mainly occurred in the Food Service and Drinking Places sub-sector, which declined by 6,000 workers. The Wholesale and Retail Trade industries were also impacted by labor force reductions due to the pandemic, declining by nearly 5,000 workers since October 2019. Though some jobs have been recovered in recent months, the impacts on employment in these sectors will likely continue to be felt in the months to come.

1 https://www.birminghambusinessalliance.com/2019-growth-report 2 https://www.al.com/business/2019/11/carvana-to-build-40-million-bessemer-distribution-center-to-hire-450.html 3 https://www.bizjournals.com/birmingham/news/2020/11/04/lowe-s-confirms-new-bessemer-distribution-facility.html 5 SECTION II: FEDERAL FUNDING AWARDS 2019-2020

During the last year, the six-county region has sought grant funding from several federal funding sources. Below is a list of known funding applications with a description of its proposed project. APPALACHIAN REGIONAL COMMISSION These grants were funded in fiscal year 2019; fiscal year 2020 grants have not been announced yet. • Expansion of the Welding Technology Program to Shelby-Hoover Campus, Jefferson State Community College: $280,003 • Building STEAM Oneonta Middle School STEAM Lab Initiative, Oneonta Foundation for Educational Resources, $100,000 • UAB Telehealth Outreach, The Board of Trustees of the University of Alabama at Birmingham, $198,730

COMMUNITY DEVELOPMENT BLOCK GRANTS The following applications were funded for fiscal year 2019: LARGE CITY APPLICATIONS: • City of Oneonta, Blount County: $450,000 for Sewer Improvement Project • City of Pell City, St. Clair County: $450,000 for Sewer Improvement Project • City of Clanton, Chilton County: 239,400 for Demolition

COUNTY APPLICATIONS: • Blount County: $350,000 for Street Improvements Project

COMMUNITY ENHANCEMENT:

• Town of Steele, Blount County: $189,977 for Clearance/Demolition • City of Clanton, Chilton County: $239,400 for Clearance/Demolition

The following applications have been submitted for fiscal year 2020 funding and are awaiting funding announcement:

SMALL CITY APPLICATIONS: • Town of Susan Moore, Blount County: $350,000 for Water and Street Improvements Project

6 ECONOMIC DEVELOPMENT ADMINISTRATION This list includes all requests for funding through the CARES Act allocation the EDA received for competitive grant applications. All applications were submitted in June 2020 and many funding requests are still being evaluated.

• Blount County Economic Development Council: Additional Staff Expansion for Economic Resiliency • Birmingham Business Alliance, Jefferson County, and Shelby County: Region-wide healthcare market intelligence study, strategy, and implementation plan • City of Center Point and City of Pinson: Industrial road development and construction • Hallmark Farms Cooperative District: Industrial road development, expansion of current water system, and industrial site preparation • IN Birmingham: County-wide advertisement strategy implementation plan • REV Birmingham: Small business development and branding technical assistance for local entrepreneurs • Global Forum for Freedom and Justice: Site selection feasibility study for future construction of multi- use convention center in Birmingham, Alabama • City of Springville: Expansion and improvement of current water system for business district • Chilton County Commission: Construction of covered arena and two ancillary buildings on Alabama Farm Center site • Jefferson County Economic and Industrial Development Authority: Construction of industrial access road • City of Hoover: Multi-jurisdictional interchange feasibility study for Interstate 459, South Crest Road, and Alabama Highway 150 Corridor

SECTION III: GROWTH STRATEGY UPDATES

The growth strategies developed for the 2017-2022 CEDS reflect the outcomes identified in the vision for the Birmingham region:

“A well-marketed region that fosters partnerships that promote regional growth and stability while retaining an ample employment-ready workforce, heavily invested leadership, and an infrastructure network that is both highly connective and accessible.”

The growth strategies outlined in the CEDS Plan of Action are Empowerment and Implementation, Infrastructure, and Improving Access to Opportunities. The projects listed in this section are categorized by growth strategy, identifying the ways RPCGB and its partners are working towards accomplishing the goals defined in the CEDS vision statement.

7 STRATEGY 1: EMPOWERMENT AND IMPLEMENTATION This strategy focuses on empowering local communities through increasing community education, leadership development, access and education regarding federal funding sources, and regional collaboration. The RPCGB, as the designated EDD by the Economic Development Administration (EDA), has continued to work towards this initiative with the following tasks:

• Met with several municipalities and governmental leaders to discuss grant opportunities for their projects and ways RPCGB could assist their communities • Partnered with other Councils of Government around the state to assist with the development of Regional Hazard Mitigation Plans for various Alabama Emergency Management Agency (AEMA) divisions • Wrote an Appalachian Regional Commission (ARC) POWER technical assistance grant application on behalf of the City of Oneonta for the feasibility study and master plan for city’s trail development project • Wrote an Alabama Department of Labor Abandoned Mine Land Program grant application on behalf of the City of Oneonta for assistance with the acquisition of land for the city’s trail development project • The Economic Development Specialist gave a presentation during a local nonprofit seminar, educating local nonprofit leaders on how to research, write, and submit state and federal grant applications • Provided technical assistance, including grant consultation, grant writing services, and support letters, to 12 municipalities and agencies seeking funding through the EDA CARES Act program • Applied for and received EDA CARES Act grant for RPCGB, which will be used to enhance staff capacity to assist out communities with recovering from the coronavirus pandemic • Used funds awarded through the EDA CARES Act fund to hire a Regional Economic Recovery Coordinator to assist the Economic Development Specialist with public outreach, local leader engagement, and the CEDS update

STRATEGY 2: INFRASTRUCTURE This growth strategy centers on improving infrastructure by pursuing projects that make existing infrastructure work better or strategically invest to maximize resources and mitigate issues. The following projects have been undertaken to work towards this strategy:

• Developing a Brownfield Redevelopment Program Initiative with the assistance of the Alabama Department of Environmental Management; the RPCGB applied for EPA funding to assist local communities in assessing potential brownfield sites in October • Held Metropolitan Planning Organization (MPO) committee meetings (Citizens, Technical, Advisory, and Policy) to discuss transportation projects that are ongoing or potentially going to begin within our region • Held Heart of Alabama Rural Planning Organization (HARPO) meetings with rural county officials to discuss potential transportation projects

8 • Received a $25,000 grant from the Appalachian Regional Commission (ARC) to improve transportation options for individuals in Walker County seeking treatment and aftercare for opioid addiction in fall 2019. The agency completed meetings and grant activities in the spring, and the project was completed in May 2020 The following documents were adopted by the Birmingham Metropolitan Planning Organization (MPO): • The Transportation Improvement Program (TIP), which provides a four-year work program that lists all regionally significant and federally funded transportation projects, programs, and transportation services to be carried out within the metropolitan planning area • The Unified Planning Work Program (UPWP), the document that guides the MPO in fulfilling its planning responsibilities for the upcoming year

STRATEGY 3: IMPROVING ACCESS TO OPPORTUNITIES

This area concentrates cultivating competitive economic assets within the six-county area. This includes attracting a diverse array of businesses and increasing the livability of communities, thereby enhancing the quality of life for their residents. The list below identifies projects RPCGB is currently working on or has completed that implement the walk-ability sustainability, and convenience of local communities:

• Collaborated with the Alabama Department of Environmental Management (ADEM) to apply for a Technical Assistance Grant through the Environmental Protection Agency (EPA). The grant was funded, and funding is being used to conduct visioning and educational workshops for two brownfields sites within the City of Pell City. • The City of Birmingham Framework Plans: These plans focus on the City’s overall vision and expectations for future growth and development and provides a framework for guiding public and private investments. There are nine framework plans for the city of Birmingham; six have been adopted, two are nearing completion, and the last plan will begin within the next year.

In addition, the following comprehensive and community plans have been completed since 2019:

• The City of Birmingham- City Center Master Plan • The City of Pelham Comprehensive Plan • The City of Homewood Sign Ordinance Update • The City of Montevallo Comprehensive Plan • The City of Chelsea Comprehensive Plan

9 The following plans are currently ongoing: • The City of Birmingham Northside Southside Framework Plan • The City of Birmingham Southern Area Framework Plan • The City of Calera Downtown Rezoning project • The City of Pelham Mixed-Use Zoning project • The City of Calera Comprehensive Plan

In addition to planning, the RPCGB also worked on the following initiatives:

• Collaborating with local co-starter firms such as Innovation Depot and Create Birmingham to partner in initiatives to attract small businesses and startups to the Birmingham Metro Area. • Loaned 57 loans over the past year, totaling over $3.28 million invested in start-up businesses throughout the region.

SECTION IV: RESILIENCY INITIATIVES

The following content sections are required to be included in the next CEDS full five-year update by the Economic Development Administration (EDA), per changes to the CEDS content guidelines. These sections detail activities that have occurred in the fiscal 2019-2020 year or are expected to take place before the end of fiscal year 2021. The resiliency initiatives listed here will be fully developed in the 2023-2028 CEDS update, which is expected to begin in Summer 2021.

ECONOMIC RESILIENCY STRATEGIES The economic resilience strategies section will include concentrate on two central planning areas: natural disasters and economic downturns. The natural disaster resiliency portion will focus mainly on hazard mitigation planning for the counties within our region, and the economic resiliency section will primarily cover the economic impacts of the COVID-19 pandemic and local recovery efforts.

Natural Disaster Resiliency

The RPCGB has partnered with four other regional councils throughout the central portion of Alabama to assist with updating the Hazard Mitigation Plans for Alabama Emergency Management Agency (AEMA) divisions comprising RPCGB member counties. These five-year plans were originally constructed on a county- wide basis, and AEMA requested regional councils’ assistance with recreating the plans on a multi-county, divisional level. Each divisional plan is expected to be completed by Fall 2021. The divisions and lead regional councils are listed in Table 1.

10 Table 1: AEMA Division-Hazard Mitigation

AEMA RPCGB Counties Lead Regional Counncil Division Impacted D Chilton Lee-Russel Counicl of Governments E Walker Northwest Alabama Council of Local Governments F Blount Top of Alabama Regional Council of Governments G Jefferson, Shelby, St. Clair East Alabama Regional Planning Commision and Development Commision

Economic Resiliency

The economic resiliency section in the next full CEDS update will largely consist of regional economic conditions in light of the coronavirus pandemic. The RPCGB is in the beginning stages of developing a Pandemic Analysis Report (PAR), a document which will outline how and to what magnitude economic indicators throughout the region have fared in the pandemic, compared to pre-pandemic conditions. This report will be based on data collected from several government sources as well as survey responses from local officials, and it is expected to be completed by Summer 2021. The agency will use the findings described in this report as a foundation for economic resiliency strategy development in the next full CEDS update.

OPPORTUNITY ZONES

Since 2017, 158 opportunity zones have been identified throughout the State of Alabama.1 Opportunity zones were created in the Tax Cuts and Jobs Act of 2017, and these zones were classified as areas in need of economic development based on specific economic indicators, such as income and poverty. This program provides a path for tax-incentive investment to occur in economically distressed communities, with the goal of creating jobs in traditionally low-income areas.2 Within the RPCGB region, 32 opportunity zones have been identified. Jefferson County has the most zones with a total of 28; the other 5 counties within the RPCGB service area have one per county.

This program has been used for many development projects within the region. One of the largest opportunity zones projects in the area occurred on the site of The Stonewall Building, or Martin Building, a vacant building in the City of Birmingham. Located in the center of Downtown, this site was developed into an adaptive reuse facility, primarily for flats and loft-style apartments. This $24 million project was supported through the opportunity zone and historic tax credit incentives, in addition to private investment. The building is now called the Lofts at American Life.

1 https://www.al.com/business/2019/09/alabama-looking-at-1-billion-from-opportunity-zone-investments.html#:~:text=Alabama%20h as%20158%20opportunity%20zones,of%20Economic%20and%20Community%20Affairs. 2 https://www.irs.gov/credits-deductions/businesses/opportunity-zones 11