Like it or not, Dome, Mass Transit coming to Birmingham

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Birmingham City Council approves sales tax, business license fee increases

Posted by Birmingham News staff December 04, 2007 12:22 PM

The Birmingham City Council voted today to increase the city sales tax by one cent and double business license fees to pay for a domed stadium, transit improvements and other projects.

Both increases will take effect Jan. 1.

The vote is a big early victory for Mayor Larry Langford, who took office Nov. 13 vowing to move quickly toward making big changes in Birmingham. Shortly after noon, the council took separate votes on

Langford's sales tax and license fee initiatives, which the mayor says will generate $72 million a year for various projects.

"Dome, done. Scholarships, done. Transit, done. It's a good day," Langford said.

The sales tax passed on a 7-0 vote, with Councilwoman Valerie Abbott abstaining. The business license increase passed on a 6-1 vote, with Abbott abstaining and Councilman Joel Montgomery voting against the increase. Councilman William Bell was absent.

The sales tax increase is slated to go towards police and fire improvements, economical development, repave streets, and put up more lights.

The business license money is slated to build a dome stadium and enhance mass transit.

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By Scott Mauldin

E-mail | Biography

Birmingham city leaders approved a sweeping finance plan today that raises sales tax and boosts business license fees in the city.

The new revenues will pay for Mayor Larry Langford’s top priorities, including a domed stadium, street paving and public safety improvements.

The city's sales tax will go up by 1 cent, to a total of ten cents total.

Business license fees will be doubled.

The changes start January 1, 2008.

Larry Langford was emotional as city leaders lined up with enough support to push his two-part, multi-million-dollar finance plan through a council vote, this morning.

"And I just want to say, mister mayor, I am encouraged by your tenacity, but also by your vision and your willingness to make a sacrifice." said Steven Hoyt, Birmingham city councilor

"We’re going to work Birmingham and move us forward." Carol Duncan, Birmingham City Councilor

"So we open today a new era of leadership, a new way of doing business for the city of Birmingham,” said Carole Smitherman, Birmingham City Councilor

"Mister Mayor, I commend you and I commend this council for having the guts to stand up for once and do something and improve our neighborhoods and our communities, and help the people in the city of Birmingham,” said Miriam Witherspoon, Birmingham City Councilor but the council was not unanimous with their support.

"72-million dollars in new tax and fees, that's a lot of money and clearly from what we've discussed this morning, we don't have much information or plans on how we're going to spend the money except in broad categories," said Valerie Abbott, Birmingham City Councilor

"I think they realize that the time to move this city forward has come. We have sat back and procrastinated all this time, allowed outside entities to determine the future of the city, they are saying it's time to do something,” said Larry Langford, Birmingham Mayor

Langford said Tuesday's vote clears the way for decision making meetings with civic center managers.

He wants to talk plans, blue-prints and time-frame for construction.

He's also looking for state help, with infrastructure. A commitment he said governor Bob Riley made, contingent on a local funding source like the new tax and fee measure.

"Now that we have the funding for the dome and transit, through ADECA and a number of other agencies, the Alabama development office, the state, by a phone call from the governor can move to have streets paved, infrastructure put in, those kinds of things,” said Larry Langford, Birmingham Mayor

Langford wants a meeting with Riley within days to go over more details.

Calls past meetings and dome plans premature since they came ahead of funding.

"Now we're going to talk about the location of it. What actually is going to be inside of it, where are we going to place it. Who will actually be implementing the various aspects of getting it done.” Larry Langford, Birmingham mayor

Langford says the money will start rolling in by the end of the first quarter of next year

The business license fees will rake in 19-million dollars a year for a domed stadium, and millions more for transit system improvements.

The sales tax will ring up 40-million dollars a year, for police and fire improvements, street paving, neighborhood improvements, and possible a student scholarship program.

[TDAuburn 2]

I'm really excited about a domed stadium in Birmingham. Now, our NFL, NBA, MLB, NHL high school super 6 teams will have a great venue in which to play.

Seriously, who, besides maybe UAB will play there? The Papa Johns Bowl... *yawn*.

[AFTiger 282]

The new appliance/electronics store, HH Gregg, on Highway 280 is in unicorporated Shelby County. Sales tax is 5%.

[otterinbham 0]

I'm really excited about a domed stadium in Birmingham. Now, our NFL, NBA, MLB, NHL high school super 6 teams will have a great venue in which to play.

Seriously, who, besides maybe UAB will play there? The Papa Johns Bowl... *yawn*.

Oh, I'm an advocate of the dome. It's not all about football. It's about basketball, major tournaments, concerts, trade shows, and other events. What's more, actually having a decent facility gives us a far better chance of attracting a better bowl, a professional franchise, or any number of other things.

Here's the thing. It's not your father's Birmingham. Over the past ten years, Birmingham has had the highest percentage income growth of any major metro area. The unemployment here is the lowest of any major metro area in the country. Downtown is showing lots of life with lofts. Office space downtown has an occupancy rate of over 93%. Major hotel chains are now eyeing Birmingham as a place to put premium properties.

I don't mean to sound like a Chamber of Commerce kind of guy, because that isn't my style. But rather than voice kneejerk skepticism, but Birmingham is becoming a town that can actually support a professional franchise or two, not to mention major events.

[TDAuburn 2]

I'm really excited about a domed stadium in Birmingham. Now, our NFL, NBA, MLB, NHL high school super 6 teams will have a great venue in which to play.

Seriously, who, besides maybe UAB will play there? The Papa Johns Bowl... *yawn*.

Oh, I'm an advocate of the dome. It's not all about football. It's about basketball, major tournaments, concerts, trade shows, and other events. What's more, actually having a decent facility gives us a far better chance of attracting a better bowl, a professional franchise, or any number of other things.

Here's the thing. It's not your father's Birmingham. Over the past ten years, Birmingham has had the highest percentage income growth of any major metro area. The unemployment here is the lowest of any major metro area in the country. Downtown is showing lots of life with lofts. Office space downtown has an occupancy rate of over 93%. Major hotel chains are now eyeing Birmingham as a place to put premium properties.

I don't mean to sound like a Chamber of Commerce kind of guy, because that isn't my style. But rather than voice kneejerk skepticism, but Birmingham is becoming a town that can actually support a professional franchise or two, not to mention major events.

Good point... when they say "stadium", I only think of sports. If the cash outlay can be offset with non-sporting events such as concerts, trade shows, etc., then yes, go for it. It would be great to get a pro franchise in here. But, once built, I'm 99.9% sure that the sales tax and business license costs won't return to previous levels. I guess that's my "beef" with any tax increase; they are passed to build/add/improve *insert cause here*, and sometimes don't go to that cause, and almost never revert to previous levels.

I agree Birmingham is "taking off". Imagine where we would be had the city not screwed up the International airport that Atlanta got by raising fuel tax (I think) before the deal was done.

Oh, and it's definitely not my father's Birmingham... he's from Puerto Rico.

[otterinbham 0]

I'm really excited about a domed stadium in Birmingham. Now, our NFL, NBA, MLB, NHL high school super 6 teams will have a great venue in which to play.

Seriously, who, besides maybe UAB will play there? The Papa Johns Bowl... *yawn*.

Oh, I'm an advocate of the dome. It's not all about football. It's about basketball, major tournaments, concerts, trade shows, and other events. What's more, actually having a decent facility gives us a far better chance of attracting a better bowl, a professional franchise, or any number of other things.

Here's the thing. It's not your father's Birmingham. Over the past ten years, Birmingham has had the highest percentage income growth of any major metro area. The unemployment here is the lowest of any major metro area in the country. Downtown is showing lots of life with lofts. Office space downtown has an occupancy rate of over 93%. Major hotel chains are now eyeing Birmingham as a place to put premium properties.

I don't mean to sound like a Chamber of Commerce kind of guy, because that isn't my style. But rather than voice kneejerk skepticism, but Birmingham is becoming a town that can actually support a professional franchise or two, not to mention major events.

Good point... when they say "stadium", I only think of sports. If the cash outlay can be offset with non-sporting events such as concerts, trade shows, etc., then yes, go for it. It would be great to get a pro franchise in here. But, once built, I'm 99.9% sure that the sales tax and business license costs won't return to previous levels. I guess that's my "beef" with any tax increase; they are passed to build/add/improve *insert cause here*, and sometimes don't go to that cause, and almost never revert to previous levels.

I agree Birmingham is "taking off". Imagine where we would be had the city not screwed up the International airport that Atlanta got by raising fuel tax (I think) before the deal was done.

Oh, and it's definitely not my father's Birmingham... he's from Puerto Rico.

I agree with you on the tax issue. I guess the problem I have is the Birmingham Syndrome, namely people naysaying any bold initiative that comes down the pipe. We in Birmingham (the metro area) tend to shoot ourselves in the foot in that regard. Quite frankly, if Nashville and Jacksonville and Salt Lake City can attract and support professional sports franchises, there's no reason Birmingham can't. What's more, Birmingham is a city that is rapidly developing a strong economic base. Give us ten years at the current rate, and you won't recognize the place.

I lived in Forest Park in Birmingham for 15 years, and elsewhere in Birmingham for an additional nine. And my biggest problems with the city centered around a lack of collective vision. People in the suburbs were always dissing Birmingham proper, as if their own civic destinies weren't tied into what the city was doing, and people who were always taking potshots at anything bold. Yeah, you can say that VisionLand and the Birmingham Turf Club were initially busts (chiefly due to inadequate marketing). Yet, both operations are now turning a tidy profit under better management. Yeah, the downtown loft community was originally overbuilt. But now the market is steadily absorbing all those downtown condominiums, changing the character of the area. I drove downtown yesterday for an appointment, and I was amazed at how much commercial space was now occupied.

Really, look at what the city has going for it:

1) A very strong, diversified economy.

2) An excellent transportation hub that is upgradable. Heck, even the airport is one of the country's most convenient. And I-22's completion will make us a major distribution center.

3) A low overall taxation level (despite the sales tax, which punishes the poor).

4) High quality of life. Just ask anybody with a family who moves here from somewhere else.

Personally, I think Birmingham needs three key components in order to really grow:

1) A sustainable downtown area. An upgraded convention center with strong hotels and good restaurants will move things along, I think. The fact that downtown is now seeing a strong surge in occupancy also means the timing is ripe.

2) Real mass transit. Aside from miserable commutes up and down 280, light rail mass transit in Birmingham will be crucial in the next decade. First, the terrain will make the construction of more major arteries even harder, thereby choking off growth south of town. Second, there are sections of town that simply cannot find reliable workforce because of transportation issues. With unemployment below 2.0% in Shelby County, for example, it's becoming almost impossible to find labor. A decent transportation makes it far easier for workers from Fairfield or West End to make it to Riverchase or Inverness.

3) Some inter-city cooperation. We're beginning to see signs of it. But, if you think about it, the people of the area are paying for dozens of individual fire departments, police departments, public safety departments, streets and sanitation departments, boards of education, communications, purchasing departments, IT departments, parks and recreation, etc. etc. etc. While I would fight merging the Mountain Brook school system with the surrounding area, I think other key government services such as fire protection, garbage pickup, etc., could be successfully combined, resulting in huge economies of scale for all the citizens. Having lived in Birmingham proper for 24 years, I can attest that city services were actually better than what I experience now in Mountain Brook--while paying much higher property taxes. The only reason I moved here was for the school system. The moment my youngest clutches his diploma, we'll probably be right back in Forest Park, or onto my boat.