In separate votes, Council approves hotel surcharge and temporary moratorium on self-storage facilities in Birmingham
In separate votes on Tuesday, the Birmingham City Council approved a $3.00 per night hotel surcharge and placed a temporary moratorium on self-storage facilities from opening in Birmingham.
After a public hearing that lasted over an hour, the Birmingham City Council voted unanimously to impose a 180-day moratorium on new self-storage facilities from operating in the city.
Also, following a lengthy discussion on Tuesday the Council voted 5 to 3 to add a $3.00 a night surcharge on all hotel rooms in the City of Birmingham after hearing from industry professionals.
Self-Storage Facilities
The item, which was submitted by Councilor Darrell O’Quinn, also leaves room for an additional 90-day moratorium if more time is needed to evaluate current zoning. During the public hearing portion, the majority of business owners and residents who spoke were in favor of the moratorium.
“We have a responsibility to make sure properties achieve their highest and best use,” O’Quinn said. “If you look at our budget and revenue, it’s impossible to miss the fact that a lot of it comes from businesses, sales tax and occupational tax. It’s hard for me to believe self-storage for this area is the highest and best use.”
Sherry Tobia owns the restaurant supply company Bresco located on 6th Ave. South near the site a proposed self-storage facility. She believes the moratorium offers the city a chance to review its current zoning practices.
“I think this move will give the city time to finish their analysis to see if this is a proper use of prime real estate,” Tobia said. “It doesn’t bring in very much sales tax or occupational tax. We’re trying to revitalize this area and bring more revenue for the city and I support the moratorium.”
Representatives with the storage facility that would be located on 6th Ave. South said the moratorium would place undo hardships on the business owners who closed on the property last month.
Councilor Steven Hoyt, who chairs the Planning and Zoning Committee, said the City is currently in the process of completing a framework plan. “It’s important that we understand that zoning is very fluid to city government. I have a gas station in the middle of the neighborhood. We haven’t finished the framework process and really taken a look a how current zoning will impact the trajectory of this city. No one here is being capricious. We’re going to be fair.”
Council President Valerie Abbott believes that the City Council has a responsibility to make sure the current zoning throughout the city is in line with the future of Birmingham.
“We have horrible zoning abutting our neighborhoods. We don’t want to chase anyone out of Birmingham because of our zoning issues that allow things to be built that people don’t want,” Abbott said. “We are looking at our zone districts for concrete plants and other things we thought were appropriate at one time but are no longer. A seven-story self-storage facility was proposed right under Vulcan. The residents were aghast. I think it’s timely for us to look at this. It’s a bigger issue than just self-storage, we want to consider the appropriateness of our current zoning plan.”
Hotel Surcharge
Birmingham is positioning itself as a sports tourism destination, Council President Pro Tem William Parker said following the City Council’s approval of a $3 surcharge for hotels in Birmingham, which will go into effect immediately. Parker submitted the item and spearheaded the effort to have it pass. The estimated $4 million in annual revenue will be used to recruit sports and entertainment events to the Magic City, he said.
The market for sports tourism adds an estimated $11.4 billion to the U.S. economy annually, according to the Greater Birmingham Convention and Visitors Bureau (GBCVB).
“We are aiming to have Birmingham be positioned as the destination for sporting events,” Parker said. “There’s a lot of momentum around this right now and the city could capitalize on people coming here for various events.”
In 2017, the National Association of Sports Commission identified over 6,800 events hosted by sports commissions with an average of $1.66 million in economic impact for each event.
Through increased recruitment efforts, Birmingham could see as much as $100 million in increased economic impact by hosting more major sporting events each year, Parker said.
“We want to be able to use the tax revenue that is generated by these events, which equates to millions and millions of dollars annually, and use that money to repave roads, make improvements to our infrastructure,” Parker explained. “We all have things we’d love to see get done in this city, but we have to add revenue to be able to do that. This minor increase to lodging taxes here in Birmingham is one way to make that happen. We can attract major events, but unfortunately, when you’re competing against larger cities and larger markets, it takes time and resources to make that possible.”
