Jefferson County, Alabama, approves $31.8 million in investments
An expansion of Pack Health is one of five major economic development projects announced this month by the Jefferson County Commission. The expansion is estimated to create 120 jobs over three years. (Brittney Vigna)
In a sign of its economic development muscle, the Jefferson County Commission recently announced five projects in one day that will create hundreds of high-paying jobs and millions in investments while diversifying the economy across the metro area, according to the commission members.
Agreements were announced this month with Pack Health, a local health care company; Kratos, a national security solutions provider that recently acquired the Southern Research Engineering division; The Bray, a Liberty Park joint venture with the city of Vestavia Hills; Southern Research, a nonprofit scientific research organization; and the Birmingham Business Alliance (BBA)’s Supplier Scale program.
A total investment of $31.8 million is spread across two of the projects. The county is investing $750,000 into the study and project from the Birmingham Business Alliance. Three of the projects will create a projected 401 combined jobs over the next five years.
Jefferson County Commissioner Steve Ammons, chair of the Economic Development Committee. (contributed)
“Each of these projects is the result of regional cooperation across multiple agencies,” said County Commissioner Steve Ammons, chair of the Economic Development Committee. “It’s important that we not only bring in new industry to diversify our economy, but continue to support agencies that are established and an integral part of the community as we continue to grow.”
Those are a few projects that have helped make Jefferson County a leader across the state in job creation since 2019, according to the Alabama Department of Commerce. In 2019 the county was fifth in the state for capital investment and fourth in the state in job creation. In 2021 the county was second in capital investment and first in job creation.
The key has been to build relationships, Ammons said.
“We have strong relationships with the Birmingham Business Alliance (BBA), the Department of Commerce, with our local allies in our seven-county region,” he said.
The focus is not only jobs, “but it’s jobs with above-average wage, because we don’t incentivize jobs unless they meet certain criteria, which is above a median income. We require $50,000 a year minimum – which we probably need to look at that and maybe increase,” he said.
Incentivizing jobs with above-average wages improves the overall economy, he said. “That’s going to be more people buying houses, or renting, if they’re just going to be here for a couple of years. … Of course, once they come here, they love it and they want to be here.
“In the grand scheme of things, once you buy a place and you’re buying a car, or you’re going into the restaurants, it has an impact. How much of that is discretionary spending? And how much are you spending in the community to improve your house? Or to go to the Red Mountain Theatre? Or any one of the restaurants? … More money is being infused into the economy because we’re adding jobs.”
Ammons said he is pleased by the timing of projects. “Some of these have been a long time coming. And they all just happen to land just about the same time, but timing is everything, right? It takes a lot of work that people don’t see in the background to make sure that these are good projects. It takes a lot of conversation, it takes a lot of work from our legal team to make sure those agreements are appropriate and are in the best interest of the county. I’m happy at the level in the interest in economic development, especially in the sectors that we we’ve chosen.”
Those sectors, he said, include advanced manufacturing, which includes automotive and aerospace, bio and life sciences, and everything from genomics to biotechnology.
Here’s a closer look at projects recently approved by the Jefferson County Commission:
- Pack Health
About: A local health care company with a capital investment of $5.2 million. Pack Health is an evidence-based patient engagement platform that changes health behaviors to close gaps in care and improve patient outcomes.
Job estimates: This expansion is estimated to create 120 jobs over three years and 200 jobs by Year Five.
Incentive: Amount based on job creation.
Alabama Power and the Alabama Power Foundation have also provided support for Pack Health and its initiatives.
- Kratos
About: A national security solutions provider that recently acquired the Southern Research Engineering division.
Plans: It will invest $26.6 million in the community.
Job estimates: 76 high-paying jobs over a five-year period.
Incentive: Amount based on job creation.
- The Bray
About: A Liberty Park joint venture with the city of Vestavia Hills.
Plans: It will develop approximately 865 acres that will be the new headquarters for Medical Properties Trust and also have residential, hospitality, health care, parks and schools.
Fiscal impact: $70 million in property taxes over the next 25 years for Jefferson County.
- Southern Research
About: A nonprofit scientific research organization.
Plans: It will expand its facilities to develop commercialization capacity with a venture studio and a new 200,000-square-foot research laboratory space.
Job estimates: Approximately 125 new well-paying research-related jobs.
- The Birmingham Business Alliance’s (BBA) Supplier Scale program
About: A supply chain study and program to support business development.
County investment: $750,000.
This story originally was published by The Birmingham Times.
