The Birmingham City Council today approved up to $13 million in incentives requested by Corporate Realty’s Northside Redevelopment LLC for the $340 million redevelopment of the former Carraway Hospital.
The incentives include $4.1 million for acquisition and blight removal and up to $9.1 million more in incentives based on future tax revenues generated by the development.
The city council in November rezoned the Carraway campus, paving the way for Corporate Realty’s plan for a multi-use development that includes office, retail, entertainment and residential space. The hospital filed for bankruptcy in 2006, and the property has not been in use since 2008.
After the council vote today, Robert Simon, CEO and president of Corporate Realty, said demolition on the existing structure will begin this spring.
“For almost three years, our team at Corporate Realty has been working with the neighborhoods around Carraway and with the city to create a plan that will once again make this Northside property a shining star for Birmingham,” he said in a prepared statement. “What happened today is the result of years of conversations and meetings with nearby residents, neighborhood groups, city councilors, city staff and many others with an interest in what happens at Carraway. We all have the common interest in removing this blight and making sure the property is once again a positive part of the surrounding community and for Birmingham overall.”
Simon also thanked ServisFirst, Corporate Realty’s banking partner in the venture.
Tom Broughton, chairman, president and CEO of ServisFirst, said the bank is committed to Birmingham and the other communities it serves.
“We are proud to be part of the redevelopment project for the former Carraway Hospital site and very excited to see the design plans come to fruition and the long-term value it will bring to the City of Birmingham.”