Council approves $50,000 incentives for Action Resources and sale of downtown building

BIRMINGHAM, Ala. — On July 22 the Birmingham City Council approved a set of companion items to support local redevelopment and a corporate relocation: a budget amendment creating a funding source, a $50,000 incentive resolution for Action Resources Incorporated (ARI), and an ordinance authorizing the sale of a city-owned downtown building for $350,000.

City staff explained that the ARI project contemplates ARI bringing 30–40 jobs to Birmingham with an expected average salary of about $100,000. Staff member Mr. Birney said the city will make five $10,000 payments (total $50,000) to ARI only after ARI certifies it has paid the occupational taxes tied to those new jobs. “We’re not paying them $10,000 upfront,” Birney said; the council must establish the funding source and then payments are made after the company meets benchmarks and the finance department verifies receipts.

Councilor Abbott asked whether the payment is upfront or contingent; Birney confirmed it is contingent on the company meeting the tax and employment thresholds and on written certification. Councilor Scales asked where the contract language appears; Birney said the contract is included in packet item 15 (the companion resolution) and directed members to that attachment.

Separately, the council approved an ordinance to sell the former Alabama Department of Revenue building at 2024 3rd Avenue North to SWBP Colonnade LLC for $350,000; the buyer intends to renovate the building into office space.

What’s next: The mayor is authorized to execute the ARI project agreement and the redevelopment sale documents. Finance staff will pay ARI installments after receiving written certification and verification that ARI generated the occupational-tax revenue specified in the agreement.