Download INTRODUCTION The purpose of the Community Market Analysis is

INTRODUCTION
The purpose of the Community Market Analysis is to identify local economic development opportunities
and to recommend specific revitalization actions. It is intended to provide guidance to stakeholders
who are engaged in community and economic development, advocacy, grant writing, business
development, and other activities that affect the Birmingham Western Area Framework market. A
market analysis provides important information that describes the financial health and economic
diversity of the community. This information can aid existing and perspective business owners as well as
investors in identifying potential opportunities within the community.
Significant time and resources have been utilized in order to identify market deficiencies and to
demonstrate a compelling need for federal subsidies and social service programs for Birmingham’s
communities and neighborhoods. This analysis is intended to serve as an extension to prior efforts,
most notably the Birmingham City Comprehensive Plan, adopted 10-02-13, as well as the Birmingham
Community Framework Plans, of which this is a component.
Birmingham’s first and oldest neighborhoods often represent millions of dollars in untapped buying
power and retail leakage. While many of them have experienced population declines over the last
several decades, residential population still exists with significant economic potential.
As
suburbanization trends have drawn population and business away from urban areas, urban residents are
frequently left in an underserved market. Urban residents often represent a diverse market which can
provide numerous opportunities for local entrepreneurs, niche markets and/or new markets for service
providers and retailers, as well as a readily available labor pool for new and/or expanded businesses and
industries.
The Birmingham Western Area Framework market is made up of three of the twenty-three communities
in Birmingham, including the Arlington-West End, Five Points West, and Smithfield communities. These
three communities consist of sixteen neighborhoods (Arlington-West End, Belview Heights, Bush Hills,
Central Park, College Hills, East Thomas, Enon Ridge, Ensley Highlands, Fairview, Germania Park, Green
Acres, Oakwood Place, Rising-West Princeton, Smithfield, and West End Manor) and represents about
21% of the city’s total residential population. The area is located west of the Birmingham City Center;
roughly bordered by Jefferson Avenue to the south, and generally bounded by Interstate 65 to the east,
Interstate 20 to the north, and Birmingham City corporate limits to the west. While this analysis is areawide, a greater emphasis was placed upon specific commercial corridors and underutilized sites within
the market area. These areas include US Highway 11, 9th Street North, Ensley Avenue, Lomb Avenue,
the former Jackson Elementary School, and the former Elyton School property.
This report includes the following:
•
•
Market Profile – defines the local market geography and analyzes the market demographic and
socioeconomic trends. This section focuses on local market conditions and characteristics.
Employment Profile – analyzes the existing employment base by primary industry and industry
sector. This section provides an assessment of the existing business community and residential
labor characteristics.
•
•
•
Market Assessment – examines the local retail and business characteristics including gap
analysis and market potential assessments.
Segmentation Profile – utilizes market research data to determine likely consumer behavior
characteristics, residential lifestyles, and prevalent target market profiles.
Development Recommendations – strategies for business recruitment based on the market
research. This section focuses on specific properties to enhance neighborhood services, retail
prospects, and employment opportunities for the community.
Source information used in this plan includes data from the US Decennial Census, the American
Community Survey (ACS), the Environmental Systems Research Institute (ESRI), Longitudinal EmployerHousehold Dynamics (LEHD), the Census Transportation Planning Package (CTPP), the Alabama
Department of Education, Dun and Bradstreet, InfoGroup, GfK, the US Department of Health and
Human Services, the Bureau of Labor Statistics (BLS), and RPCGB estimates.
BACKGROUND
The issues that Birmingham community residents face are not unique to Birmingham. National trends in
suburbanization have continued to draw residents away from metropolitan urban centers – a
phenomenon not likely to reverse without significant incentives to perspective property owners. There
are ongoing debates as to the prevalent causes, with specific attention to the age and quality of the
existing housing stock, perceptions of crime and education, residential amenities and shopping
conveniences, transportation and mobility options, and perspectives of overall quality of life. Most
perspective homeowners chose to buy a home because of the community, not despite the community.
Weak demand in a community locks the housing market into a progression of decline. Over time there
are more housing units available than there are people looking for homes. As a result, the housing
prices fall below replacement costs. Properties with little market value deteriorate as there is no
financial benefit to the property owners to improve or maintain them. While lower prices make the
homes more affordable, there is no financial incentive to develop in low value areas and buyers avoid
these areas because they are not viewed as profitable investments. Communities begin to see large
numbers of vacant and dilapidated properties, and the municipalities begin to collect fewer property
taxes and experience increasing numbers of tax delinquent properties. As these vacant and abandoned
properties spread, families who are financially able move out.
Revitalization efforts should focus not only on improving the physical characteristics of the communities,
but also on understanding the community dynamics, targeting resource investments, building on
existing assets, and improving design. The use of comprehensive revitalization strategies will improve
economic diversity, create employment opportunities, and enhance the community’s housing market.
MARKET PROFILE
The conditions, characteristics, and trends of the Birmingham Western Area are integral in assessing the
assets and opportunities of the market area. The market profile provides information relevant to
population, housing, and income indicators used to assess and measure the market characteristics of
the community. The indicators are discussed and presented in charts and maps, providing a communitywide context for conditions and trends.
The Birmingham Western Area is approximately thirteen square miles. With an estimated residential
population of 44,880 and 17,783 households, there are 3,452 persons per square mile (5.4 per acre).
The population has decreased by 20% since 2000. Census figures report an average annual population
decrease of 2% since 2000, with the largest numeric declines occurring within the Black or AfricanAmerican residential population and among the school age population.
POPULATION
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1990
2000
2010
2012
The residential population in the Birmingham Western Area has become progressively older over the
last several decades. Like that of the City of Birmingham, as well as the nation, the senior population is
growing. As the baby boomer population continues to advance in age, their numbers are increasing as
well. Persons aged 60 years and older made up 18% of the population in 1990. By 2012 that percentage
had increased to 21% though the total number has dropped by 2,047 persons. The percentage of
residents aged 19 or younger decreased from 32% in 1990 to 26.6% in 2012, a total decrease of 7,970
young people. The working age population, residents between the ages of 20 to 59 years, has
experienced an increase in their percent share, rising from 49.9% in 1990 to 52.9% in 2012. While the
working age percent share has increased, the overall total has decreased by 7,221 residents. The
changes of these age groups are representative of both national trends and local market dynamics. The
current market conditions indicate an increasing percentage of the senior population and a declining
percentage of the younger population. The median age of the community has increased from 32.1 in
1990 to 37.8 in 2012. The age group characteristics within the community will translate to changing
demands on city services and market demands for goods and services.
100.0%
3.5%
3.5%
3.6%
3.9%
90.0%
14.6%
12.4%
15.3%
16.7%
26.8%
33.5%
33.6%
32.3%
AGE 80+
20.4%
20.6%
AGE 60 TO
79
AGE 35 TO
59
AGE 20 TO
34
AGE 5 TO
19
80.0%
70.0%
60.0%
50.0%
40.0%
23.0%
19.2%
30.0%
20.0%
24.1%
24.8%
20.5%
19.9%
7.9%
6.6%
6.7%
6.6%
1990
2000
2010
2012
10.0%
0.0%
The housing characteristics of the Birmingham Western Area have undergone significant changes over
the last several decades. The 2012 housing estimates report 21,791 total units with 17,783 occupied
units (81.6%) and 4,008 vacant units (18.4%). Since 1990 the total number of units in the community
has decreased from 26,038 to 21,791 units, a decrease of 16%. Occupied units have decreased from
23,162 units in 1990 to 17,783 units in 2012, a decrease of 23%. The majority of the housing units in
Birmingham Western Area are over 50 years old. The combination of an older housing stock with
depressed property values creates a disincentive to property owners. Weak housing demand has
resulted in median home property valuations estimated at nearly 68% of that of the City of Birmingham,
with $68,000 as an estimated median home value by area zip codes compared to $100,000 for the City
of Birmingham as a whole. There are an estimated 4,008 (18%) vacant housing units and 1,852 (8.5%)
tax delinquent residential properties in the Birmingham Western Area.
HOUSING UNIT CHARACTERISTICS
30,000
25,000
11.0%
11.4%
20,000
18.1%
18.4%
81.9%
81.6%
2010
2012
15,000
10,000
89.0%
88.6%
5,000
0
1990
2000
HOUSEHOLDS
VACANT UNITS
The majority of the housing market in the Birmingham Western Area consists of single family detached
dwellings (72%), with the bulk of the remaining units being multi-unit dwellings found primarily in the
Birmingham Housing Authority’s Elyton Village and Smithfield Court public housing complexes in the
Graymont and Smithfield neighborhoods. Several additional apartment buildings and smaller multifamily complexes are found throughout the area. Much of Birmingham’s Western Area residential
properties have transitioned from owner-occupied units to renter-occupied units over the last several
decades. According to recent estimates, the number of renter occupied units increased to 48% by 2012.
This increase may be due to the abundance of affordable rental homes throughout the area or a desire
of area residents to locate closer to the schools following the city’s school closures and consolidations
that took place between 2008 and 2011.
HOUSING TENURE
25,000
20,000
43.1%
15,000
43.0%
48.1%
47.9%
51.9%
52.1%
2010
2012
10,000
5,000
56.9%
57.0%
1990
2000
0
OWNER OCCP
RENTER OCCP
Many of the family households in the Birmingham Western Area have moved into other areas. Between
1990 and 2012, the number of family households decreased from 15,875 (69%) to 10,826 (61%), a
decrease of 5,049 or 32%. Of the family households, married-couple households with children had the
most notable decrease dropping from 8,760 in 1990 to an estimated 457 in 2012, a 95% decrease.
Additionally, this housing group made up 55% of all family household types in 1990 but by 2012 it
represented just 4% of all family household types. The general decline in married couple households,
while a symptom of higher divorce rates related to shifting social norms, may also be indicative of a local
trend where families that possess the financial means to raise their children in areas perceived as more
stable chose to move elsewhere. The decrease in married couple households with children also
translates to an increasing percentage in single parent households, single spouse households, and
multigenerational households where grandparents are taking a larger role raising their grandchildren.
Nonfamily households are making up a larger portion of households in Birmingham’s Western Area.
These include households consisting of single individuals living alone or with nonrelatives. While the
overall totals of nonfamily households only slightly decreased, their percent share of all households
grew from 32% in 1990 to 39% in 2012.
HOUSEHOLD CHARACTERISTICS
25,000
20,000
31.5%
33.2%
15,000
38.6%
39.1%
61.4%
60.9%
2010
2012
10,000
68.5%
66.8%
5,000
0
1990
2000
FAMILY HHLDS
NONFAMILY HHLDS
FAMILY HOUSEHOLD CHARACTERISTICS
80.0%
70.0%
60.0%
68.5%
55.2%
66.8%
50.0%
45.2%
40.0%
33.2%
31.5%
61.4%
60.9%
38.6%
39.1%
30.0%
20.0%
10.9%
4.2%
10.0%
0.0%
1990
FAMILY HHLDS
2000
2010
MARRIED COUPLES W/ CHILDREN
2012
NONFAMILY HHLDS
Median household income in the Western Area has increased from an estimated $17,810 in 1990 to
$26,634 in 2012, an increase of 50%. While this increase is consistent with general income trends, the
increase is somewhat less than that of the county and state. The City of Birmingham as a whole, with a
2012 estimated median household income of $30,780, is 13% higher than that of the area. This is due in
part to the lower wage jobs located within the community as well as a disproportionately higher
unemployment rate and poverty rate.
According to 2012 estimates, 52% of all Birmingham Western Area households earn under $25,000 per
year and 84% of all households earn less than $50,000 per year. The 2012 average income of
households in the Birmingham Western Area was estimated at $36,458 while the average household
income for the City of Birmingham was $45,436. It is additionally estimated that nearly 40% of all
households are below poverty (earning less than $19,090 in 2012 for a 3-person household) and 31% of
households receive cash public assistance or food stamps/SNAP benefits. Poverty has an opposing
effect on the economic vitality of a community. Individuals living in poverty are often at risk of adverse
consequences such as poor health and criminal activity, which result in reduced labor market
participation. Poverty impacts the development of skills, abilities, knowledge and habits that are
necessary for an active participation in the workforce. Human capital is a fundamental component of
economic growth and poverty can work against the development of economic growth by limiting the
ability to contribute to the economy.
HOUSEHOLDS BY HOUSEHOLD INCOME, 2012
16%
31%
15%
17%
< $15,000
$15,000 - $24,999
21%
$25,000 - $34,999
$35,000 - $49,999
$50,000+
Disposable income, also called surplus income, is the amount of household funds available for spending
and saving after paying income taxes. The amount of disposable income is an important indicator for
the economic health of an area, and it is used to gauge the investment viability of business activity. The
amount of income remaining for discretionary spending does not include expenditures on housing,
transportation, food, child care, etc., therefore the amount of truly disposable income, whether used for
household savings or retail spending, is lower than may be indicated. The 2012 estimated average
disposable income in the Birmingham Western Area is $30,852. By comparison, that of the City of
Birmingham is estimated at $37,488, therefore the typical household in the Western Area possesses
about 18% less disposable income than the typical household of Birmingham as a whole. With an
estimated 58% of disposable income being spent on necessities such as housing, food and
transportation, it is clear that many households are living paycheck to paycheck or are struggling to get
by. If a household just makes enough money to cover the basic necessities, there is no opportunity for
them to develop assets or savings.
According to 2012 estimates of household disposable income, 32% of Birmingham Western Area
households possessed less than $15,000 in disposable income, and 53% of households possessed less
than $25,000. Of the 16% of households possessing over $50,000 in disposable income, the majority are
householders between the ages of 55 and 64 years. Additionally, young householders under 25 years
and senior householders 75 years and older possess the least amount of disposable income, with 63%
and 74% respectively, retaining less than $15,000 in disposable income.
HOUSEHOLDS BY DISPOSABLE INCOME, 2012
6,000
5,000
4,000
3,000
2,000
1,000
0
< $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 +
EMPLOYMENT PROFILE
The Employment Profile is intended to provide an assessment of the community’s existing business and
job conditions. This analysis of employment and industry data is necessary to determine the nature of
the community’s workforce, the job environment, and business diversity. The indicators are discussed
and presented in charts and maps, providing a community-wide context for conditions and trends.
According to U.S. Census estimates, the residential labor force in the Birmingham Western Area is
approximately 20,184 residents. Of those residents in the labor force, 82% are employed and 18% are
unemployed. The City of Birmingham’s unemployment rate in 2012 was 9%. The majority of employed
residents work within the Service Industry (53%), with other concentrations in Retail Trade (14%),
Government (7%), and Manufacturing (6%). Most employed residents are between the ages of 30 to 54
and earn $1,251 to $3,333 per month. Wages and employment numbers are important to residents and
businesses alike. Workers rely on a living wage to accommodate the needs of their families, while
businesses are interested in paying workers a competitive wage to access and retain skilled labor.
AGRICULTURE & MINING
60.0%
GOVERNMENT
CONSTRUCTION
50.0%
40.0%
30.0%
SERVICES
MANUFACTURING
20.0%
10.0%
0.0%
FINANCE, INSURANCE, & REAL
ESTATE
TRANSPORTATION
MANAGEMENT &
COMMUNICATION
RETAIL TRADE
WHOLESALE TRADE
UTILITY
There are approximately 1,321 businesses in the Birmingham Western Area employing about 10,700.
Service-based establishments make up the largest number of community businesses and provide 70% of
the jobs. These jobs are primarily within the Healthcare and Accommodation/Food Services sectors.
Retail-based businesses are the second largest industry providing 11% of the jobs, followed by
Wholesale Trade with 6% of the total jobs. Jobs associated with construction and manufacturing
account for 10% of all jobs collectively. The decrease of businesses follows the decrease of residential
population and results in a loss of employment opportunities. Businesses, particularly those in the retail
and service industries, follow the population.
AGRICULTURE & MINING
70.0%
GOVERNMENT
CONSTRUCTION
60.0%
50.0%
40.0%
30.0%
SERVICES
MANUFACTURING
20.0%
10.0%
0.0%
FINANCE, INSURANCE, & REAL
ESTATE
TRANSPORTATION
MANAGEMENT &
COMMUNICATION
RETAIL TRADE
WHOLESALE TRADE
UTILITY
The largest employers include Princeton Baptist Medical Center (1,400 employment), Birmingham
Southern College (350 employment), Fairview Nursing Home (175 employment), Jefferson County
Family Court (140 employment), and Oak Knoll Health and Rehabilitation Services (134 employment).
Collectively, these five businesses make up 21% of all jobs located in the Birmingham Western Area. The
heaviest concentrations of employment are primarily located along the US Highway 11 (Bessemer Super
Highway) corridor.
•
Map of Western Area Job Concentrations
The number of business locations within the market area appears well distributed throughout the
community, with the heaviest concentrations along US Highway 11 (Bessemer Super Highway),
Tuscaloosa Avenue, Ensley Avenue, and 9th Street North in the Smithfield Neighborhood. These corridor
locations represent 45% of all business locations in the market area and 28% of all market area jobs.
These corridor locations also represent the highest concentrations of retail businesses.
•
•
Map of North Birmingham Business Concentrations
Map of North Birmingham Retail Business Concentrations
An analysis of local commuter data of employment by place of work and employment by place of
residence indicates that approximately 14% of employed Western Area residents are also working in the
Western Area. Conversely, 86% of employed residents work outside the Western Area. Commuting
data indicates that the primary destinations of employed residents of the Birmingham Western Area are
the Birmingham City Center, South Side/ Mid Town areas, and the West Homewood/ Oxmoor areas.
These primary job destinations make up 33% of all employed Western Area residents, thus the
remaining 53% of employed residents are working elsewhere in Birmingham and Jefferson County.
MARKET ASSESSMENT
The Market Assessment is used to evaluate retail market opportunities. Through the analysis of a welldefined market profile for the Birmingham Western Area, better informed decisions can be made in
terms of targeted investments. This assessment is intended to provide insight as to the ability of the
Western Area to support specified commercial development within the local market by comparing
existing supply with demand. The calculation of demand is a function of the estimated spending
patterns and consumer behavior of the market area. The data focuses on retail market leakage and
surplus factors to identify gaps within the local market.
Overall, the Birmingham Western Area market possesses an estimated $273.4 million in retail demand
(spending potential) and has an estimated $246.6 million in retail supply (retail sales). This results in a
positive retail gap (leakage) of $26.8 million, indicating that existing retail demands are not being met.
This measurement, however, includes external market spending at business establishments where
persons living outside or commuting through the market area spend retail dollars. These locations
typically include gasoline stations, motor vehicle parts and dealers, convenience stores, and fast food
establishments. Several opportunity gaps can be identified within specific industry subsectors and
groups.
The highest opportunities indicated for primary industry subsectors include General Merchandise Stores
($48.4 million), Gasoline Stations ($17.3 million), and Building Materials/ Garden Equipment/ Supply
Stores ($6.8 million). The area has several specific and niche retail opportunities where significant
consumer spending leakage is identified. These industry groups include Home Furnishing Stores,
Building Materials and Supplies Dealers, Lawn and Garden Equipment Stores, Clothing Stores, Book,
Periodical and Music Stores, Department Stores, General Merchandise Stores, Office Supply Stores, and
Full-Service Restaurants.
•
•
Table of Existing Supply/Demand Balance, 2012 – Primary Industry Subsectors
Table of Existing Supply/Demand Balance, 2012 – Primary Industry Groups
An analysis of market area consumer spending potential was conducted to further identify specific
goods and services which may represent unmet demand within the Birmingham Western Area market.
This data measures the relative likelihood of the adults in the specified trade area to exhibit certain
consumer behavior and spending patterns for specific goods and services. Spending by visitors and
nonresidents are not included, therefore the estimates are specific to characteristics in the Western
Area.
The highest opportunities are identified for products and services where spending patterns are at or
above the national average. This analysis includes purchases and frequency of purchases within the
industry categories of Electronics and Internet, Financial Investments, Health and Beauty, Pets and
Products, Restaurants, and General Retail. According to the analysis, the following purchase
characteristics represent unique consumer usage and demand specific to the Birmingham Western Area:
•
Electronics – Audio equipment, music, televisions, and video gaming systems
•
•
•
•
Health and Beauty – Dietary controls, dietary foods, vitamin supplements, pharmaceuticals,
and personal care products and services
Pets and Products – Pet food and pet medications
Restaurants – Food at Family restaurants/ steakhouses and Fast Food establishments
Retail – Watches, jewelry, cell phones, movie theatre attendance, and toys/ games
SEGMENTATION PROFILE
The Market Segmentation Profile for the Birmingham Western Area provides greater insight of the
consumer market make-up and spending habits of the residents. The profile classifies social groups
based on socioeconomic and demographic composition. The characteristics associated with each
segmentation classification are used by market analysts to assess the various needs and requirements
within the market area to more effectively market goods and services. It also provides a more
generalized characterization of the residential lifestyles within the market area. The Birmingham
Western Area market is primarily classified within the two dominant tapestry groups of Traditional
Living (Middle-aged and middle income - Middle America) and Metropolis (City dwellers in older homes
reflecting the diversity of urban culture). Within the groups, the community is further broken down into
five segments.
MARKET SEGMENTATION
City Commons, 8.8%
Social Security Set,
1.9%
Modest Income
Homes, 23.7%
Metro City Edge,
27.2%
•
•
Family Foundations,
37.4%
Family Foundations (37.4%) – The largest segment in the Birmingham Western Area, these
households are primarily in urban communities in Southern metropolitan areas and are
characterized by a mix of married couples, single parents, grandparents, and young and adult
children. There is a slightly lower labor force participation rate and many employed residents
work in government jobs. Public assistance is higher than average. Most residents do not move
and are active in their community with high church attendance and participation on civic boards.
Metro City Edge (27.2%) – Found primarily older suburban neighborhoods of large metropolitan
areas, these households consist of married couples and single parents. Many multigenerational
•
•
•
families are present where grandparents are the primary caregivers. Many are employed in the
service industry but unemployment is higher than the national average. Although home prices
are inexpensive, many residents are young, unsettled, and still rent. They are further
characterized as careful spenders, preferring discount superstores and wholesalers for bulk
purchases of household and children’s items.
Modest Income Homes (23.7%) – Most homes are in older suburbs of Southern metropolitan
areas and primarily consist of single-family dwellings. They are characterized by single-person
and single-parent household types with a higher-than-average proportion of adult children still
living at home. Many householders are retired and many are caregivers providing for their
grandchildren. There are strong family ties in this segment. Many retirees rely on public
assistance and most residents work part-time rather than full-time.
City Commons (8.8%) – This segment is primarily characterized by single-parent families or
singles who live alone. Many are younger households and most have children. Residents are
primarily employed in service occupations, though unemployment is high and many receive
public assistance. Because of limited employment options, many residents work part-time.
Many of these householders are renters and are prone to relocating. With the presence of
children, many residents frequent nearby parks and playgrounds.
Social Security Set (1.9%) – This segment consists of older, single householders. Unemployment
is high with the working age householders and many of them work in the service industry.
These residents are typically apartment renters and rely on public transportation. Limited
resources somewhat restrict the activities and purchases of residents, and they typically shop at
discount stores but prefer grocery stores close to home. Many depend on Medicare and
Medicaid to pay health care costs.
DEVELOPMENT RECOMMENDATIONS
The following development recommendations are specific to retail and service opportunities as well as
existing employment and recruitment opportunities. The recommendations are intended to address
community retail demand gaps and bolster employment opportunities for the residents. Additional
employment opportunities will increase the number of residents participating in the labor force,
increase incomes and local sales, and raise the market/ investment value of the community contributing
to community revitalization.
The data indicates that there is a wide range of unmet demand and retail opportunity based on the
spending patterns and consumer behavior of the Birmingham Western Area residents. The market
supply and retail sales balance indicates that the residents of the Western Area possess a higher
spending potential than what is currently being generated in sales. In addition to opportunities within
the typical retail subsectors, the data also shows opportunities for smaller businesses that can focus on
niche market products and services. These opportunities are primarily along the existing retail corridor
of US Highway 11 (Bessemer Super Highway), though additional sites are identified as well. There are a
number of ‘opportunity sites’ throughout the area, including vacant land and buildings that are currently
vacant and could be upgraded to provide small offices, retail, arts and entertainment uses, or housing.
Many of these sites are in poor physical condition and require some level of rehabilitation (e.g., façade,
plumbing, electrical systems, ADA compliance) in order to be occupied. Though investment challenges
exist, the following recommendations attempt to build on existing community assets and expand on
existing retail and services with complementary businesses.
RETAIL RECOMMENDATIONS:
US Highway 11 (3rd Avenue West/ Bessemer Super Highway)
The US 11 Corridor serves as a primary gateway into the Birmingham Western Area. This corridor also
serves as the primary retail corridor from the Smithfield Community through the Five Points West
Community, spanning from I-65 to Fairfield. The majority of the area’s existing retail activity is located
along this corridor. The following recommendations build upon this existing activity with commercial
uses and retail opportunities identified in the market analysis.
•
#1: The following groups of properties located along 3rd Avenue West between 3rd Street West
and 7th Street West primarily consist of underutilized land, vacant commercial, and range in
individual size from about 7,600 square feet (0.2 acres) to 47,550 square feet (1.1 acres).
Several have been identified as tax delinquent. Many of these properties are adjacent thusly
providing opportunity for consolidation and larger building footprints. Aggregated property
locations may yield a site or sites between 3 and 8 acres in size. While these properties are
within the Valley Creek flood plain, retention and mitigation efforts downstream may alleviate
much of the risk. Suggested redevelopment and business types include:
A mixed use development with retail, office, and residential components. A mixed use
development will generate activity, encourage additional retail investment, and put the
properties into productive use.
 Locally owned/ operated businesses suited to this area market may include restaurants
such as American Deli, Subway Sandwiches and/or Little Caesar’s Pizza, health and
beauty establishments, laundry and dry cleaning services, audio/ electronics, family
medical businesses, senior care services, financial services, and clothing boutiques.
#2. The next grouping of properties is located along 3rd Avenue West between 9th Street West
and 11th Street West. The individual properties range in size from 5,194 square feet (0.1 acres)
to 70,721 square feet (1.6 acres). Most of the properties are vacant or dilapidated commercial,
though some vacant lots. One property is existing multi-family in declining condition. Six of the
properties are identified as tax delinquent. Collectively, these properties represent nearly 11
acres of redevelopment potential. Situated along a busy transportation corridor and
surrounded by a significant residential population, these properties are ideal for retail
redevelopment. Considerations include:
 Multi-tenant retail with a grocery supermarket and pharmacy as specified anchor
tenants. An appropriate grocery venue would serve as a commercial anchor for a retail
development while providing an additional option to area residents for more convenient
access to healthy foods. Many of this area’s grocery establishments are small and
provide a limited selection of fresh produce and meat to residents. While the area
market analysis shows no significant demand for additional grocery stores, there is no
convenient local supermarket to serve the needs of many residents in and around
Smithfield, West End, and Five Points West. Suggested grocery establishments ideal for
this market and that operate within smaller construction parameters include Aldi, SaveA-Lot, and Wal-Mart Neighborhood Market.
 A mixed use development with retail, office, and residential components as well as
entertainment and other compatible uses. The location is ideal for taking advantage of
its location along a primary retail strip and existing residential concentrations. The
proximity to Rickwood Field also adds to the location’s appeal.
#3: The site located at 1531 3rd Avenue West is ideally situated along the retail corridor and has
high visibility. The property is approximately 20,575 square feet (0.47 acres) with an existing
vacant structure approximately 2,300 square feet. With ample parking available and multiple
access points, it is well suited as a small restaurant location or retail establishment. Possible
businesses include:
 Sandwiche Shops
 Diners
 Pizzarias
 Lawn and Garden Shop
 Jewelry, Luggage & Leather goods store
 Hobby Shop
 Book Store
 Clothing Boutique store
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#4: The following group of properties located at and near the intersection of Eufaula Avenue
and US Highway 11 (Bessemer Road) consists of underutilized land and vacant commercial, and
range in individual size from about 7,600 square feet (0.2 acres) to 19,663 square feet (0.5
acres). One has been identified as tax delinquent. Some of these properties are adjacent thusly
providing opportunity for consolidation and slightly larger building footprints. Aggregated
property locations may yield a site or sites between 0.4 and 0.6 acres in size. Suggested
business types include:
 Crating, packing, and shipping services
 Building Materials & Supplies
 Gasoline Service Station
 Sporting Goods/ Hobby/ Book/ Music Stores
 Audio equipment, music, televisions, and video gaming systems
#5: The site located at 1945 Bessemer Road is ideally situated along the retail corridor and has
high visibility. Formerly a Blockbuster Video store, this blighted property is approximately
29,200 square feet (0.67 acres) and possesses multiple access points. It is well suited for a small
retail establishment. Possible businesses include:
 Hardware Store
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Furniture & Home Furnishings
Cleaning & Maintenance Services
Family Medical Services
Art & Framing
#6: The Birmingham Metro CrossPlex facility offers a range of development opportunities
including retail, office, hotel, and recreational activities. The property is prominently situated
along US Highway 11 (Bessemer Road) and Avenue W in the Five Points West Community. This
property contains approximately 45 acres of developable land and is adjacent to the highest
concentrations of existing retail activity in the Western Area. The continuation and expanded
use of the CrossPlex for competitive sports will create a catalyst for development. Added
development and business recommendations include:
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Sporting Goods Store
Office Supplies Store
Men's Clothing Store
Women’s Outlet Outlet
Stein Mart
TJ Max
Fast Casual Restaurant
Sports Bar & Grill
Country Kitchen
Family Steakhouse
Motel
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#7: This vacant shopping center (Midway Plaza) located at 1201 Bessemer Road is approximately
494,000 square feet (11 acres) and has ideal visibility along the corridor with an estimated
average annual weekday traffic count in excess of 20,000 vehicles per day. This location,
adjacent to the YMCA and across from the Fairview Health and Rehabilitation Center, possesses
great potential as an area entertainment destination. By branding the location and recruiting
family-based entertainment establishments, this location can serve a needed demand. Possible
business types include:
 Bowling Ally
 Arcade
 Indoor Playground
 Laser tag
 Go Karts
 Miniature Golf
 Batting cages
 Pizzeria
 Deli
 Café
 Bookstore
 Sylvan Learning Center
2400 Ensley Avenue (Former Limbaugh Auto Dealership)
The Limbaugh site and surrounding properties located off the I-20/59 exit 120 along Ensley Five Points
West Avenue is approximately 427,200 square feet (9.8 acres). The location well situated off the
interstate with excellent visibility. The site consists of the former car dealership property, a car rental
business, seven residential properties, and a vacant lot. Two of the residential properties are identified
as tax delinquent. The size of the site and its location offers itself as an ideal redevelopment
opportunity. Possible uses include:
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A hotel and restaurant location serving travelers and visitors to the nearby CrossPlex facility.
A multi-tenant retail center, service station, and restaurant such as Cracker Barrel.
A mixed use development with office and retail.
2012 22nd Street (Townhouse Park)
The Townhouse Park residential area located off Avenue T and 21st Street near I-20/59 exit 121 consists
of approximately thirty residential units and measures about 147,500 square feet (3.4 acres). Nearly
half the properties are identified as tax delinquent and many are in substandard condition. This site is
located across Avenue T from the existing Limbaugh Toyota dealership. As a commercial location,
business considerations should include:
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Motorcycle dealership
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Mixed use neighborhood retail and servcies
Tuscaloosa Avenue & 11th Street SW
These properties located near Princeton Baptist Medical Center on Tuscaloosa Avenue consist of three
parcels. These properties are all vacant commercial locations and one is identified as tax delinquent.
With the proximity to the hospital and adjacent commercial activity, these locations are well suited for
reuse. Commercial uses that cater to serving both the surrounding residential needs as well as the
surrounding health care employment center should be considered. Potential uses include:
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Laundry & Dry Cleaning
Child Day Care & After School Care Services
Home Health Care Services
Specialty Food Stores
Art Shop
Antique Stores
EMPLOYMENT RECOMMENDATIONS:
300 10th Street North (Former hotel site)
This property, now a vacant lot, is approximately 108,000 square feet (2.5 acres) and is located within
concentrations of light industrial and warehousing activities. The site is adjacent to immediate
interstate access and is has direct links into the City Center. The location makes redevelopment of this
property ideal for warehousing/ distribution or light manufacturing activities such as textiles, furniture,
or vehicle parts.
225 Center Street
This vacant light industrial property sites between the Jefferson County Family Court property and the
former Elyton School location. The property is approximately 3.7 acres in size and represents
redevelopment potential by itself or in conjunction with the Elyton property. The location is most
appropriate as light industrial or warehousing, but could also be redeveloped as a multi-tenant retail
location serving the neighborhood and the activities associated with the family court. The location
could also be used for family health services with offices for general practitioners, allergists, dental care,
and elder care.
100 Tuscaloosa Avenue SW (Former Elyton School Property)
This former elementary school, considered historically significant, long served as a community focal
point. The location is ideal for redevelopment and can once again serve as a contributing asset to the
community. The property is city owned and is approximately 210,000 square feet (4.8 acres) in size.
Consideration of redevelopment in conjunction with the property at 225 Center Street as well as the
continued conversion of the properties north of the school site adjacent to Valley Creek as public open
space and storm water retention will add activity and aesthetics to the redevelopment efforts. Possible
uses include:
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Senior Living Facility – A senior care facility will make long term use of the property while
providing housing and nursing care services to the community’s growing senior population. It
may be possible to utilize and add to the existing structure, preserving the visual character and
community sentiment for the building. Additionally, a senior care facility would provide
employment opportunities to local residents. The added residential activity could serve as a
catalyst for ancillary businesses and service providers as well. The use of government housing
assistance funds and public-private partnerships to further assess the viability of a senior care
facility should be considered.
Mixed Use Development – A small scale mixed use facility will provide a variety of commercial
options to the community that may include office space, retail, entertainment, and other
compatible uses. This location is ideal for taking advantage of the walkable, compact nature of
the surrounding residential areas. A mixed use development will generate activity, encourage
additional retail investment, and put the property into productive use.
100 4th Terrace West (Former Woodrow Wilson Elementary School)
This vacant institutional property is approximately 3.7 acres in size. The site is located among residential
properties and is not on a heavily traveled roadway. In order to maintain compatibility with the
surrounding land use, low intensity reuse is recommended. Potential uses include:
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Senior Living Facility - With consideration given to the area’s growing senior population as well
as the proximity to Princeton Baptist Medical Center, a senior living facility would generate
limited added traffic while also providing employment opportunities within the community.
Job Training - A job training center would be beneficial to community residents who are
interested in career advancement or pursuing a trade. It would provide an employment catalyst
for the community as well as increasing workforce participation. Partnerships with local
colleges, financial institutions, and the business community will help to support these efforts.
Mixed Use Development - A small scale mixed use facility will provide a variety of commercial
options to the community that may include office space, retail, and other compatible uses.
1430 14th Street SW
These former industrial properties total 13 acres. Reuse of the site(s) as a warehousing and distribution
facility would be consistent with the property’s existing land use and zoning. By putting these
properties back into productive use, local employment opportunities would be created.
1401 16th Way SW (Former Jackson Elementary School)
This former elementary school property is approximately 4.6 acres in size. The site is located primarily
among residential properties and is not on a heavily traveled roadway. In order to maintain
compatibility with the surrounding land use, low intensity reuse is recommended. The adjoining Lowery
Park enhances the appeal of the location. Potential uses include:
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Senior Living Facility - With consideration given to the area’s growing senior population as well
as the proximity to Princeton Baptist Medical Center, a senior living facility would generate
limited added traffic while also providing employment opportunities within the community.
Mixed Use Development - A small scale mixed use facility will provide a variety of commercial
options to the community that may include office space, retail, and other compatible uses. A
small number of apartment units or condominiums would be appropriate for the area as well.
ADDITIONAL RECOMMENDATIONS:
Strategies and funding for community redevelopment and reinvestment must be targeted and
sustained. The success of any growth model is dependent on a distinct strategy for improving economic
opportunities in distressed urban areas. Any gains that have been made may be lost, cycles of poverty
will continue, and regional growth will weaken, unless an enduring economic growth strategy of
targeted investment is implemented.
While many of the recommendations and locations identified in this plan have been previously
discussed in other action plans and redevelopment strategies, this report focuses on creating a
foundation of community market research and data from which the City of Birmingham can formulate a
targeted strategy for redevelopment and reinvestment in Birmingham’s Western Area.
Business Development
These recommendations focus specifically on ongoing business development including recruitment,
retention, support, and entrepreneurial development.
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Recruit businesses based on the potential identified in the Market Analysis – A number of retail
and business opportunities were identified in this market analysis through an assessment of
spending potential and consumer spending patterns. While the Western Area possesses several
opportunities for larger retail chains, wholesalers and restaurants, niche market and
entrepreneurial opportunities exist as well.
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Focus on business opportunities that complement existing business – Avoid recruitment of
competing business and services. Recruitment should serve to increase business diversity in the
community rather than increase competitiveness.
Make data readily available to existing and potential businesses – There are numerous
underutilized or vacant lots and buildings in the Western Area. The City of Birmingham should
consider creating and maintaining an online database of available retail spaces including size,
zoning, lease rates, price, utilities, condition, etc. Additionally, a single point of contact
dedicated to providing information for all community business related questions should be
established. This business information manager would serve to coordinate efforts with relevant
city boards and departments by establishing themselves as a resource center for the distribution
of site materials.
Review municipal regulations and ordinances – A thorough analysis of the ways in which the City
interacts with developers. A review of the development and enforcement ordinances pertaining
to zoning, design, property maintenance and signage could lead to improvements which could
make the community more appealing to developers.
Ensure adequate access to public transportation – Many community residents are dependent on
public transit to provide transportation to their jobs, healthcare, and errands. Continued review
of routes, stops, and service access is encouraged in order to ensure service is available to the
greatest number of residents possible.
Funding
There is no singular funding source dedicated to economic development in the Birmingham Western
Area. Public sector budgets have been shrinking rather than expanding, and given this reality, a
diversified funding strategy is necessary for any successful redevelopment efforts. The following
sources may provide meaningful funding sources.
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Plan with the community residents of the Western Area – The City of Birmingham must engage
the residents as it moves forward in developing and implementing an economic growth strategy.
Through their input, the City can formulate priorities in its economic development efforts and
capitalize on existing assets.
Manage the Birmingham Western Area funding priorities with the City’s Capital Improvement
Plan – In order to better manage, fund, and implement identified development plans and
infrastructure improvements, the City should promote the coordination of its capital projects
with its economic development plans.
Tax Increment Financing – The City should consider establishing a tax increment financing (TIF)
district to aid in the restoration and occupation of the existing commercial space through the
financing of public and private infrastructure and development projects.
Continued promotion of the City’s Enterprise Zone (EZ) Program – The Alabama Enterprise Zone
Act (Act. # 87-573) was enacted to stimulate business and industrial growth in designated areas.
This program provides state and local tax incentives and non-tax incentives to new and
expanding businesses within the zone. The EZ Program offers certain exemptions from sales
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and use tax on purchases of construction-related materials, machinery and equipment used in
the zone, income tax for five years, and business privilege for five years.
Consider the implementation of a Birmingham Community Payroll Tax Exclusion Program – Such
a program may be designed to provide payroll tax exclusions for area employers, ideally large
employers, who employ residents that live within the community. While the City may be
foregoing payroll tax collection on some workers, the City would benefit with an increase in local
labor force participation and the resulting sales tax generated. Tax exclusion thresholds may be
utilized based on employment size and/or total payroll.
Utilize public loan programs – There are varied business loan programs with specific
qualifications that can provide financial assistance to new and expanding businesses. The City
should provide assistance to businesses in this regard as part of a recruitment and retention
strategy.
Grants
The use of state and federal grants to aid in the financing of public infrastructure and development
projects will be a necessary component to a funding strategy. While grant funds have lessened and
competition for grants has intensified, the City should aggressively pursue grant funding to assist in its
redevelopment efforts. Some grant opportunities include the following:
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Appalachian Regional Commission
ArtPlace America
Brownfields
Center for Independent Living
Community Foundation of Greater Birmingham
Community Development Block Grants
Economic Development Administration
Environmental Protection Agency
National Endowment for the Arts
United Way
US Department of Housing and Urban Development
US Small Business Administration
Partnerships
Local nonprofit organizations are already invested in the communities they serve. These organizations
help to provide necessities such as homes, food, jobs, training, and social services that stabilize
neighborhoods and elevate quality of life. The City can utilize these organizations, many of which are
well-equipped to design and implement successful projects responsive to residents’ needs, through new
and existing mechanisms that foster partnerships with nonprofit community-based organizations. Local
businesses also have a vested interest in the communities in which they are located. Some of these
organizations include:
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Alabama Land Bank
Economic Development Partnership of Alabama
Birmingham Business Alliance
Health Action Partnership
Jefferson County Economic and Industrial Development Authority
Jefferson County Department of Health
Local residential and commercial real estate developers
Main Street Alabama
Major area employers
Workforce Development
An economic growth strategy should also include the creation of quality jobs to increase workforce
participation, provide a stable and meaningful income, and lift people out of poverty. The higher
incomes that come with improved educational attainment and work skills would increase personal
income and raise additional tax revenue. Mechanisms should be implemented to incorporate social
benefit policies, with an emphasis on workforce development, with economic development efforts.
Some organizations to assist in this effort include:
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Alabama Office of Workforce Development
Better Basics
Jefferson County Workforce Development
Positive Maturity
Workshops, Inc.