Birmingham seeks neighborhood revitalization with Opportunity Zone 2.0 initiative

The City of Birmingham is looking to attract new investments, create jobs and support neighborhood revitalization through a renewed federal initiative called Opportunity Zone 2.0, which is designed to encourage investment in historically underserved communities. With several Birmingham neighborhoods and commercial corridors identified for redevelopment, the City is working to connect experienced developers and investors with these opportunities throughout The Magic City.

What are Opportunity Zones?

Established by the Tax Cuts and Jobs Act of 2017, Opportunity Zones are an economic development tool designed to spur economic growth and job creation in low-income communities by allowing people to invest in distressed areas in the United States. As an incentive, Opportunity Zones provide tax benefits to investors.

Under the initial iteration of the Opportunity Zone program, the City of Birmingham coordinated with local entities through the Birmingham Inclusive Growth (BIG) Partnership and the statewide nonprofit Opportunity Alabama (OPAL) to take full advantage of the program. That effort drove several major adaptive-reuse, housing, and commercial projects in The Magic City, including:

• The redevelopment of the historic American Life Building
• The redevelopment of the former American Red Cross Building into the Market Lofts on Third
• The revitalization of the first floor of the historic Burger-Phillips Building

These Birmingham neighborhoods could see new investment in Opportunity Zone 2.0

Following the U.S. Department of the Treasury’s November 5 announcement of the new Opportunity Zone 2.0 designations, the City of Birmingham is working to connect experienced developers and investors with opportunities throughout the city.

“This is an opportunity to attract new investment to communities that have historically been overlooked and unlock possibilities for transformative growth. But realizing that potential requires more than tax incentives. It requires partnering with competitive development teams and identifying projects that deliver lasting value.

We want to attract visionary developers, locally and nationally, who can help create jobs, expand housing opportunities and build wealth in ways that directly benefit Birmingham residents.”

Mayor Randall L. Woodfin

Within Birmingham, areas identified through the region’s Opportunity Zone application include historic and emerging commercial districts, redevelopment sites and residential communities with potential for new investment. Some of the locations identified include:

• Woodlawn
• Norwood
• Former Carraway Hospital campus
• Downtown Birmingham
• Ensley
• Historic Ensley Works site
• Smithfield
• Titusville

“Opportunity Zones 2.0 give us another tool to help move investment into communities with significant potential. We are interested in working with experienced developers who understand how to use this tool strategically and who are committed to projects that create sustainable economic opportunities for the communities where they invest.”

Coreata R. Houser, Director, Department of Innovation and Economic Opportunity, City of Birmingham

The City of Birmingham is encouraging developers and investors, both locally and nationally, to explore opportunities throughout the designated areas by connecting with the City’s Department of Innovation and Economic Opportunity via ieo@birminghamal.gov.