Category Archives: Business

The reason behind the UAB athletics announcement

state appropriationsThis morning The Terminal sent an email to Jim Bakken, director of media relations at the University of Alabama at Birmingham (UAB), requesting a breakdown of revenue sources at the school for the last 3-5 years. We were specifically asking for those numbers to be broken down between research and non-research sources.

It is our contention that the original decision to announce the discontinuation of UAB’s bowling, rifle, and football teams would be understood in a much broader context once folks take a closer look at that data. We’ve since found other ways to make our case.

The key to this approach to the story is taking a step back and looking at the entire university and not just athletics and its budget in a vacuum. Many of the arguments associated with saving the program are based on proving UAB can afford to pay for athletics. If you base it purely on cash in hand and access to the money in the budget, this is a true statement — the school can afford to field a full slate of teams. If you remember it is one department in one of the state’s most valuable resources — and one that recently hasn’t been able to provide for merit raises, etc. — you realize it becomes a flimsy proposition quickly.

A look at the 2013 financial report (particularly pages 5 and 6 for purposes of our initial statement of facts) gives us the first lovely graphic accompanying this article. It shows the appropriations received by UAB from the state of Alabama from 2009 – 2013. It essentially suggests that appropriations have remained flat for that time frame.  The findings reported by Yellowhammer News back in September shows that the total decline has been slow, but steady — a result of the recognition of UAB’s importance to the state economy. The decline for UAB (5%) incidentally is not nearly as precipitous as the ones for the main campus in Tuscaloosa (20.7%) and Huntsville (19.2%) during that same 1987-2012 time period they referenced. This will come into play at the end of this piece.

uab staff profileA look back at this piece filed by former Birmingham News reporter Hannah Wolfson in September 2011 shows that the budgets for all three schools in the university system rely heavily on increasing enrollment numbers. Officials have tried very hard to resist raising student fees and tuition, even though that’s the only non-research related funding potentially under the school’s control. It’s what allows them to pay for non-hospital and non-research faculty related positions. It also allows for the subsidy for athletics. Basically, non-research related funding is what’s used to pay for most of the non-hospital positions at UAB. That would be the reason for the use of the second graphic taken from the report in this piece. The inability to see significant increases in funding means you can’t afford cost of living increases, non-capital efforts, or (as evidenced on Tuesday) pay raises for coaches in athletics if the program is being propped up via a subsidy from the academic side. Research funds can’t necessarily be used because they’re basically earmarked for specific projects.

One thing to remember as you look at when this article was filed is what else was going on at the time — the UAB on-campus stadium effort. It provides the basis for another theory as to why it was never taken up by the Board of Trustees for consideration two months later.

Following this to its logical conclusion, it can be hypothesized that Ray Watts didn’t cut football because he was out to hurt UAB; he cut football to keep UAB from suffering a fate similar to the current situation at the University of Maryland – a hiring freeze for all non-research related positions. It would also explain not only why Carol Garrison resigned before but why Judy Bonner announced her resignation late last year at Alabama. It also explains why the university has been so excited with regard to its recent increases in research funding, specifically from the National Institutes of Health.

Incidentally, Maryland did just announce this brand new project — one that won’t be affected by their hiring freeze. This is after they made a move back in 2012 that may look familiar to those who’ve been following the UAB situation — except they chose to keep football.

There are other effects to this effort — ones we’re continuing to investigate at this time.

The Baking Bandits plan to open brick and mortar space after winning REV Birmingham’s first ever “Big Pitch”

The Nest Birmingham open houseSaturday evening, November 8, saw The Baking Bandits win REV Birmingham’s “The Big Pitch” —  a first-time business plan competition sponsored by PNC Bank. Ten businesses vied for a $10,000 prize (with an additional $5,000 audience choice award presented by AL.com and given to The Magic City Spool Bus, a mobile sewing studio concept) and received business coaching and mentoring throughout the process.

Kristen Farmer Hall and her fellow bandits, daughters Emma and Eleanor, sat down to discuss everything that’d happened in the past year on October 30 in their new event space, The Nest, in Birmingham’s Avondale commercial district. This interview took place one day after the initial mentor pairing for The Big Pitch, a week before their first public appearance for the competition and as the Bandits were celebrating a year of baking. Emma watched videos on a smart phone while Eleanor read from a book while Kristen talked about the whirlwind that’s been the last twelve months.

“I’m thrilled with the way it’s been received. What started out as baking lessons turned into a one-week pop-up shop, which turned into a spring, summer and fall of sell-out farmers markets,” said Hall. “This week we celebrated our one-year anniversary and we’re thinking about opening a brick-and-mortar, so it’s been an unexpected journey.”

It’s a journey that started as a labor of love. “I started baking with [my daughters] on Sundays. For me, baking has always been about sharing. Baking and sharing and being comfortable in the kitchen has always been therapeutic for me. I recognized that for most people the kitchen is not therapeutic and it’s a stressful place. I wanted to start the girls young, and in the kitchen, and cracking eggs, and making a mess.”

The fruits of their labor led to another dilemma with a simple solution. “When you make cookies, you have cookies all over your house. So we started packaging them up and delivering them to friends and neighbors and became known as the Baking Bandits.” It’s also led to cookies and other baked goods (including galettes and scones) being available at Lucy’s Coffee and Tea as well as two of the city’s newest eateries — Bottle & Bone and Revelator Coffee.

The adventure has now brought them to a space in the Avondale Bricks that’s already received rave reviews as it’s hosted everything from an event during the city’s second annual Design Week to wedding receptions. The space, selected after a sixteen-month process, is one that allows for Hall to think about the possibilities and opportunities. “Interestingly enough, I chose this space in Avondale for the Nest, but it happens to be a brilliant location for a bakery,” she said.  “In the last few months, there’s been such a food renaissance here in Avondale, it really is a perfect addition to the neighborhood. We had nightlife, entertainment, and bars, and we’ve now grown a lunch into dinner crowd, but we still don’t have breakfast and before lunch,” she continued. It’s part of a renaissance taking place throughout the city, and one that Hall credits in part to “the entrepreneurial spirit of Birmingham coming back” and to “a lot of us who have dreams and skills and desires” being given the opportunity to pursue them.

“It still requires hard work… a great business idea, and it requires you solving the problem, but it can be done, and it’s exciting too that Birmingham is really supporting and excited and taken to the renaissance.”

Hall has pursued other artistic endeavors, including (and most notably) Spark Design Studio, a project featuring handmade glass jewelry and housewares that led to an appearance on HGTV back in 2009. She points out that those efforts — and her previous career in fundraising — have prepared her for this latest chapter. “I feel like I’ve really found my niche,” Hall says.  “It’s a combination of chemistry, creativity, marketing and so many other things that I love.”

The culinary creative is also participating in the first class of Co.Starters, a new nine-week offering from Create Birmingham (formerly the Cultural Alliance of Greater Birmingham) in partnership with REV Birmingham and MAKEbhm. “[The program] has been incredible because basically it takes you through that business from an idea to reality and you have to face hard truth and the hard numbers,” said Hall. “It’s also not your traditional business plan experience either. It’s taking you through a lot of the emotional side of things, and that’s helpful.” she continued.

During the conversation, Hall spoke of the hope she had for the space if The Bandits were awarded the prize money.

BakingBanditsFanPagephoto“I definitely love the idea of being a community spot, for people to come and enjoy life, work, and other things.” She continued, “I’ve talked to freelancers and other creatives… stay-at home moms, working moms — it’s a really broad group of people who live in Crestwood, Avondale, Forest Park, Woodlawn — to just kind of become a nest. As I envisioned The Nest, the bakery was never part of the original vision, but it all kind of works together.” It also brings with it a whole new set of questions. “The idea of opening a brick and mortar bakery is an interesting one in terms of ‘Do I want to have a single location that people come and get Baking Bandits?’ or ‘Do I have want to have the full experience here at the Nest and then you’re able to get it elsewhere?’,” said Hall.

All of the recent opportunities have led Hall to take a day by day approach to the future, though it definitely received a boost last night as a result of the win. When asked about how plans for the bakery would proceed if she won, Hall said, “…depending on what happens [with the Big Pitch], I would say 3 to 4 months — probably a shortened timeline just because we’ve already located a space; we already have a space; the space is actually already built out completely for a cafe except for our kitchen in the back. We’ve have elements for it, but we’ve got some work to do back there. We’re sort of poised for a relatively quick turnaround.” After all, they’ve been able to test the market for a year now. It also means she’s been able to realize something few get an opportunity to enjoy: “It’s interesting, the two things that I love, baking and events, can all be in one space.”

UPDATED: Trader Joe’s arrives in Birmingham in late 2015

UPDATE: 9/17/2014As suggested in the second paragraph below, this afternoon the Birmingham Business Journal has confirmed the space Trader Joe’s will occupy is the current Banana Republic location.

trader-joesMembers of the “Bring Trader Joe’s to Birmingham” fan page on Facebook, rejoice! Trader Joe’s has announced their intention to open at The Summit during the second half of 2015, according to reports from AL.com and ABC 33/40 this morning. Both cite a release from the Monrovia, California-based company, notoriously tight-lipped about proposed locations until absolutely necessary, saying the 12,600 square foot store will be at 209 Summit Boulevard – the development’s southern portion.

The address suggests there will be other announcements in the coming days about new construction or the relocation and/or closing of stores (though the AL.com version of the story has been updated with the exact address being removed) as there is no vacancy currently in that portion of the lifestyle center.

A search of the city’s permitting database in late February and early March suggested a new project was coming to the popular lifestyle center. The location is more central to the metro area than people realize (and still within Birmingham’s city limits — as are the Nordstrom Rack and Target locations in Shelby County). The announcement also does not contradict a statement made back in 2011 — and comments made by the store’s founder at that time. The store’s size and announced location follow a trend first examined in 2011 by the Los Angeles Times — one seen as a way to capture more revenue. It will be the first full-service grocer at The Summit since Bruno’s closed in May 2009 following its parent company’s bankruptcy filing.

A representative for the chain informed the Birmingham Business Journal as recently as March that the market was not on the radar. This was shortly after an anonymous tip sent to this website led to attempts to reach out to both Trader Joe’s and Bayer Properties this spring. No response was received.

Huntsville was optimistic about its chances of landing a Trader Joe’s (as evidenced by this Reddit thread), but today’s announcement came with a statement similar to that one about Birmingham in 2011. It may only be a matter of time then, Rocket City…

The mayor negotiating direct flight options isn’t that far-fetched — for several reasons

Straßenbahn BremenYesterday’s report about negotiations taking place between Birmingham, AL and the German state of Bremen by Joseph Bryant in AL.com had some scratching their heads. Instead, it probably should have had folks wondering why it had taken so long to get to this point.

An agreement signed in November 2011 between Alabama’s development office and Germany’s tenth largest city could be key in understanding how and why these talks are taking place — plus a reminder that it’s not uncommon for these types of negotiations to take place at all.

Alabama’s secretary of commerce, Greg Canfield, shared the following information with AL.com via a prepared statement back when the pact was announced:

“We have 68 German companies who have invested more than $5.8 billion in Alabama. Since 2000, these companies have been responsible for 10,305 announced jobs in our state.”

This document produced by the U.S. Consulate General’s office in Hamburg (it’s only eight pages) in 2011 spells out most of the reasons why the agreement still makes sense. The most recognizable of those companies has a significant presence in Central Alabama — it’s Mercedes-Benz. The company’s plant in Bremen is producing the same C-series W205 sedans currently under production in Vance, AL. It was the main focus of a follow-up visit made by the Bremen Economic Development agency in 2012.

The recently completed $201.6 million renovation and expansion of Birmingham-Shuttlesworth International Airport gives the facility an opportunity to provide a less-crowded alternative to Hartsfield-Jackson International in Atlanta, It does not serve as a hub (Delta’s main hub is located in Atlanta while Southwest effectively treats Nashville as its gateway to the southeastern United States). That said, as the Birmingham Business Journal recently suggested, incentives will play a key role in whatever ends up happening with regards to international or domestic direct flight service. It also doesn’t hurt that the current expansion project provides for additional gates to be added when and if the need is identified — and that a recently released master plan for Hartsfield still needs to be priced out and receive public input.

While it may seem weird to hear about the mayor being involved in negotiations to secure direct flights, it is not unprecedented. The example most relatable may be what happened in Columbia, MO. Shortly after the announcement that the Tigers would be joining the SEC, then first-term Mayor Bob McDavid was able to secure direct flight service via Delta to and from Atlanta, GA. This service was discontinued shortly after it was announced — but only because Delta thought American Airlines received a better incentive package to provide direct flight service to Chicago, IL (via O’Hare) and Dallas, TX. A more recent example (resulting in direct flight service to the same two cities) is what Bismarck, ND was able to secure from American via incentives.

Whether or not Birmingham is successful, the precedent is there. Time will tell what options will be available to area residents.

Photo: Straßenbahn Bremenkaffeeeinstein/Flickr.

 

Multi-million dollar renovation underway at The Redmont Hotel

Redmont renovation beginsIf you’ve driven by The Redmont Hotel in recent weeks, you’ve noticed plywood covering some of the windows and doors on the ground floor. The last two days have brought increased activity to the historic hotel as the first significant signs of its estimated $13.4 million renovation are now visible. Crews and machinery were in front of the building this morning. It will be the first extensive project undertaken at the hotel since 2007.

The property was one of the first ten to be awarded state tax credits as part of the Alabama Historic Rehabilitation Tax Credit program earlier this year. It appears to be the first of those located in Birmingham to move forward with related work.

Last August saw Hay Creek Hotels announced as the hotel management company hired to oversee the renovation. They’ve already created a landing page for the property in its reservation network; Stewart Perry is serving as the project’s general contractor. The hotel has held a renovation sale during the last month, with management holding a party in the lobby back in June. Attendees were told at that time the property’s rooftop bar, Above, would open before the renovation was completed.

Is Uber preparing for an arrival in Birmingham?

http://storify.com/bhamterminal/uber-may-be-preparing-to-enter-metro-birmingham

East Lake residents to get choices for their morning cup

east59interiorIt’s been several months since the REVIVE pop-up initiative visited several of REV Birmingham‘s commercial districts. One of the long-awaited results of that effort in East Lake is the opening of East 59, a coffee shop to be located at 7619 1st Avenue North near Oporto-Madrid Blvd. A May 19 status update to the company’s fan page on Facebook let folks know they’d been approved for build-out, keeping them on-track for the summer opening long mentioned on their website. They won’t be the only ones keeping area residents caffeinated this summer though…

coffeebooksbluesA Kickstarter campaign launched by Sharrif Simmons suggests area residents will have at least two coffee houses to choose from later this summer, though the second will have a different vibe. The New York native is looking to open Coffee, Books, and Blues by July, bringing an independent bookstore and music venue to the area at 752 81st St., S., near the corner of Rugby Avenue and 81st St. S. Simmons once worked at the famed Liberation Bookstore in Harlem and is its late founder Una Mulzac‘s great nephew. He plans to offer a selection of both new and used books. There are also plans to serve as a performance venue and to host a farmers market on Sundays.

Looking forward to seeing how both of these efforts move forward.