Council approves agreement for redevelopment of historic property

The Council unanimously approved a funding agreement with Nextec LLC to redevelop and rehabilitate the approximately 65,000 square foot Edwards Motor Company Building (former Sticks ’N’ Stuff Building) located at 1531 3rd Avenue North, which will be leased for use as flexible workspace and collaboration areas for start-up businesses graduating from Innovation Depot.

As Birmingham’s tech sector continues to grow, it’s important that the City makes efforts to retain emerging companies that started their operations here. The City will be investing $400,000 for five years to incentivize the redevelopment. There will be roughly $300,000 generated annually from occupational, sales and use tax. There will also be 311 jobs added over the next seven years.

“I just want to sincerely thank the mayor and his team for making this project happen,” Councilor O’Quinn said. “I want to also thank my colleagues on the Council because there was a time when this project was not going in this direction and the Council acted to prevent that from happening. I think this project we’re seeing today is 1,000 times better than where this was headed. This will significantly contribute to an historic area of Birmingham that deserves this type of investment.”

Here is the item as it appeared on Tuesday’s agenda:

A Resolution authorizing the Mayor to execute, for and as the act of said City, a Project Funding Agreement with Nextec, LLC, under which Nextec will undertake a project to redevelop and rehabilitate the approximately 65,000 square foot Edwards Motor Company Building (former Sticks ’N’ Stuff Building) located at 1531 3rd Avenue North, which will be leased for use as flexible workspace and collaboration areas for start-up businesses graduating from Innovation Depot, and the City will provide incentives in support of the project to be paid in five (5) annual installments of $400,000.00 each provided certain leasing milestones set forth in the Project Funding Agreement are met, for a total incentive of up to $2,000,000.00, with the first such payment to be from CSLFR Funds. [First payment: 039_000.527–050 (American Rescue Plan)] (Submitted by the City Attorney) (Recommended by the Mayor, the Economic Development and Tourism Committee and the Budget and Finance Committee) **