Money from the demolition of Star Uptown Birmingham Carraway Hospital

To bring the future Star Uptown to life, eleven of the former Carraway Hospital buildings must be demolished. Since this summer, seven of them have disappeared. Now the developer, Corporate Realty, is asking Birmingham for more demolition money to complete the job. Otherwise, this developer would run out of money to demolish the rest of the structures. When Birmingham first approved an incentive deal for the project in 2020, it agreed to give Corporate Realty $4 million in demolition funds up front, followed by another nine million in future tax breaks. Then on Monday, the developer said during a city council budget and finance committee meeting that raised costs needed $3.7 million from those future incentives now, to complete the demolition. will happen in the future,” Councilwoman Valerie Abbott said. Although the proposal requires the city to pay more now, it significantly reduces tax relief over time. That means the new deal would ultimately cost taxpayers about $1 million less, in the “I think the reduction in our overall money going to us probably makes me a little more comfortable with this deal,” a said Councilman Clinton Woods. The first phase of demolition ends next month, with three more buildings to be demolished in early 2023. The full city council has yet to approve the new funding incentive scheme. Corporate Realty says new construction could begin by next April with the entire development expected to be completed by 2027.

To bring the future Star Uptown to life, eleven of the former Carraway Hospital buildings must be demolished.

Since this summer, seven of them have disappeared.

Now the developer, Corporate Realty, is asking Birmingham for more demolition money to complete the job.

Otherwise, this developer would run out of money to demolish the rest of the structures.
When Birmingham first approved an incentive deal for the project in 2020, it agreed to give Corporate Realty $4 million in demolition funds up front, followed by another nine million in future tax breaks.

Then on Monday, the developer claimed at a meeting of the city council’s budget and finance committee that the rising costs required $3.7 million of those future incentives now, to complete the demolition.

“To me, I’m troubled that you guys have this huge project and they’ve already run out of money. It makes me wonder what’s going to happen in the future,” Councilwoman Valerie Abbott said.

Although the proposal requires the city to pay more now, it significantly reduces tax relief along the way.

That means the new deal would ultimately cost taxpayers about $1 million less.

“I think the reduction in our overall money going to us probably makes me a little more comfortable with this deal,” Councilman Clinton Woods said.

The first phase of demolition will end next month, with three more buildings falling in early 2023.

The full city council has yet to approve the new funding incentive program.

Corporate Realty says new construction could begin by next April with the entire development expected to be completed by 2027.

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