ITEM 3
The Birmingham City Council voted unanimously to approve two loans for Birmingham Southern College totaling $5 million.
The first $2.5 million loan will be forgiven if the terms of the agreement are satisfied, including the school being open for the fall 2024 semester – those funds will be immediately available. The other $2.5 million loan will be repaid over a 20-year term with one percent interest and will be made available to the school next year. The school is leveraging a portion of their existing property as collateral for the loan.
Council President Darrell O’Quinn, explained BSC is an anchor institution for two historic communities: College Hills and Bush Hills. This money is an investment into the stability and economic future of the area, he said.
“One of the things that I was excited about is that Birmingham Southern College, as part of the agreement, is extending three scholarship opportunities for graduates of Birmingham City Schools,” President O’Quinn said. “This isn't a decision we made lightly. All of the considerations in terms of jobs and economic impact to the entire city really factored in to why there was a unanimous decision among the Council to support this today.”
The school employs roughly 300 people (an additional 1,200 indirectly) and has an estimated annual economic impact of $45 million in the city. During the public speakers portion of Tuesday’s meeting, several local business owners expressed support for the aid, saying the success of their business is directly tied to the college.
Councilor JT Moore, who chairs the Community Development Committee, said the goal was to avoid another situation like Carraway Hospital, which was a blight in the community for over a decade.
“Having an empty 200 acre campus in the middle of a neighborhood that is on the verge of a resurgence will set this area back decades,” Councilor JT Moore said. “I understand the concerns of those who disagree with the decision to provide financial support to a private university. Over the last several months, the Birmingham City Council has continued to have these difficult conversations. In my opinion, this is an investment into the future of the surrounding area and our residents who live here.”
With other major institutions like Princeton Baptist Medical Center, Legion Field and the Birmingham CrossPlex all located within a couple miles of the school, losing an anchor like BSC could lead to further disinvestment in the community, lowered home values and a reduction in services, according to city officials.
BSC President Daniel Coleman told reporters following the meeting that they will also be seeking financial support from Jefferson County and urged the state’s executive leadership to re-evaluate their position on denying the loan that was approved by the Alabama State Legislature. The financial support provided by the City of Birmingham will allow BSC to continue operating throughout the remaining school year, according to President Coleman.
BOLD Grant Recipients
On Tuesday, the Birmingham City Council approved a total of seven program agreements through the Building Opportunities for Lasting Development (BOLD) Grant program with the City.
Now in the sixth year, BOLD supports the growth of women-owned, minority-owned, and disadvantaged businesses, and focuses on developing our small businesses environment.
Today’s BOLD funding agreements are as follows:
Birthwell Partners: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with Birthwell Partners, Inc. to help overcome barriers to economic opportunities for 80 residents by providing birth doula services, childbirth and parenting classes, and maternal health advocacy workshops. The project also includes workforce development through Birthwell’s need-based work-study program, which will expand access to doula training for three Birmingham residents and offer continuing education to further develop the skillset of 10 community doulas working with Birmingham’s at-risk families for a term of twelve (12) months, for an amount not to exceed $90,000.
Bundles of Hope Diaper Bank: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with Bundles of Hope Diaper Bank through the BOLD funding program to help overcome barriers to economic opportunities for 1,500 Birmingham residents by distributing diapers, wipes, and menstruation products to community partners and schools for a term of twelve (12) months, for an amount not to exceed $120,000.
MedPLUS Consulting, LLC: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with MedPLUS Consulting, LLC. Through the BOLD Funding Program to support workforce development for three (3) Birmingham residents to become community health workers and to help overcome barriers to economic opportunities for 60 Birmingham residents by providing diabetes prevention for a term of twelve (12) months, for an amount not to exceed $104,695.00.
Diane’s Heart: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with Diane’s Heart, Inc. (Diane’s Heart) under which Diane’s Heart as part of the City’s Building Opportunities for Lasting Development (“BOLD”) Program to support workforce development, overcoming economic barriers, and revitalizing Birmingham’s neighborhoods through the “She Knew There Was More” coaching and mentoring program for 30 Birmingham residents for a term of twelve (12) months, for an amount not to exceed $138,413.00
Urban Impact: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with the Urban Impact, Inc. (Urban Impact) under which Urban Impact as part of the City’s Building Opportunities for Lasting Development (“BOLD”) Program to support small businesses and minority-women-and disadvantaged business enterprises through the Legacy Entrepreneurship Program, which will train 24 legacy businesses in succession planning, safeguarding the legacies of long-established businesses, and facilitating the intergenerational transfer of wealth and business ownership in Black communities for a term of twelve (12) months for an amount not to exceed $150,000.
Is-Able Ministries: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with the Is-Able Ministries though the BOLD Funding Program to support workforce development, overcoming economic barriers, and minority-women and disadvantaged business enterprises through employment training, wraparound services, and financial management training to 60 Birmingham resident for a term of twelve (12) months, for an amount not to exceed $87,050.
Momentum Alumnae Program: A Resolution approving and authorizing the Mayor to execute a BOLD Program Agreement with Momentum Alumnae Program, Inc. through the BOLD Funding Program to support workforce development and overcoming barriers for minority – women- and disadvantaged business enterprises through Momentum Work, an initiative that will provide professional leadership training, wrap-around services, and access to professional expert resources for 50 Birmingham residents for a term of twelve (12) months, for an amount not to exceed $117,500.00.