Alabama business roundup: Headlines from across the state
Here’s a roundup of some of the top business headlines from across the state this week: AL.com: Up from the ashes: Developers awarded $3.7 million federal loan to transform Birmingham’s historic Powell School Developers seeking to restore and redevelop Birmingham’s oldest school building have been awarded a $3.7 million federal loan to undertake the project. U.S. Rep. Terri Sewell, D-Birmingham, today announced the award from the U.S. Department of Housing and Urban Development to Integral Group to redevelop the 127-year-old Powell School building downtown. Integral plans to convert the building into 24 units of studio, one-bedroom and two-bedroom apartments. “I am thrilled that this award will play a vital role in redeveloping downtown Birmingham,” Sewell said. “This project will create opportunities for economic development and bring much needed attention to the area. I applaud the efforts of local leaders who have joined together in ensuring that we address deteriorating and blighting structures in the Magic City.” The HUD loan is through the Section 108 Loan Guarantee Program designed to eliminate and prevent blight. Powell School, at 2329 Sixth Ave. N., was built in 1888. The Victorian structure was nearly destroyed by a massive fire in Jan. 2011. When demolition appeared imminent, historic preservationists urged the city of Birmingham to spare the structure to give them more time to find other options. Mayor William Bell and the City Council then agreed to turn ownership of the property, along with $500,000 of seed money, to the Alabama Trust for Historic Preservation. Preservationists used the money to clean and secure the building, along with replacing the destroyed roof. “We are delighted that HUD has approved that loan and we are optimistic that we will be able to see renovation begin in the next few months,” said Michael Calvert, former president of Operation New Birmingham, who has served as a volunteer with the Alabama Trust for Historic Preservation to market the old school. “This was a key and it is a critical element, no question about it. The other things that are critical are the historic tax credits that we believe have been reserved both by the state of Alabama and the federal government.” Mayor William Bell also celebrated today’s announcement, calling the loan a major step in returning life to the historic building. “We had some concerns early on that the building was beyond repair,” Bell said, recalling the devastating fire. “It could have gone either way. This gives us an opportunity not only to save a structure, but to also create more residential space in the downtown area. Bell said the Powell School project was one of two major redevelopments in which the city collaborated with developers seeking HUD assistance. The other was the Pizitz Building currently being redeveloped by Bayer Properties. According to its plan, Integral will hire a team that includes Birmingham-based Williams Blackstock Architects and Christy/Cobb Inc. engineering. Integral is already established downtown as the management and leasing manager for Park Place, the mixed-income Hope VI development that surrounds Powell School. Alabama Newscenter: Tall timber: Forests on the rise throughout Alabama Contrary to popular belief that urban encroachment is depleting forests, timberland is actually increasing in Alabama. The state now has a record-high 23 million acres of timber, putting it third in the country behind Georgia and Oregon, according to a new report by the Alabama Forestry Commission. Since 2000, timber volume has grown 18 percent, and now accounts for 69 percent of the state’s total area. Meanwhile, the rate of replacing harvested timber continues to outpace cutting, with every ton of timber harvested replaced by 1.55 tons of new growth. “The annualized inventory of Alabama’s forests continues to show all the benefits we derive from our vast forests – wood products, clean water, clean air, wildlife habitat and recreational opportunities – can be managed in a sustainable way,” said State Forester Greg Pate. “The fact more land is being put into timberland is icing on the cake.” Another myth is Alabama is overrun with pine trees. But the ratio of pines to hardwoods is about equal, with 9.9 million acres of pines and 9.8 million in hardwoods. A mixture of hardwood and softwood trees account for 3.2 million acres. The vast majority of Alabama’s timberland, 94 percent, is privately owned; the rest is in public hands. About 7 percent of the state’s timberland is owned by “forest industries” – that is, companies that process wood, according to the Forestry Commission report, while 87 percent is owned by non-industrial, private owners. Birmingham Business Journal: Coal War, Part III: What EPA regulations mean for Alabama coal producers *Editor’s Note: This is the third installment of the BBJ’s five-part online series investigating the state of Alabama’s coal industry and its future.* Aside from market forces, much of the blame for the recent downturn in the Alabama coal industry has been focused primarily on one entity – the Environmental Protection Agency. Even last week, the government agencymodified a previous decree to Alabama Power Co., leading the utility to announce it would permanently close three coal-fired facilities and swap four others to natural gas. Alabama Power in 2014 also blamed federal regulations when it announced it would close two coal-fired units in Walker County. This week, though, the EPA was dealt a setback to its policy when the U.S. Supreme Court ruled the EPA had not taken cost into consideration when asking utilities to expedite the process of cutting mercury emissions from their coal-fired power plants. While the new changes to EPA regulations have Alabama Power reconsidering its energy production, what do they mean for Alabama coal producers like Hoover-based Walter Energy Inc.and Drummond Co. Inc.? What EPA regulations are hurting Alabama coal producers? Ron Gord, head of the air quality division at the Alabama Department of Environmental Management, said in an interview with the Birmingham Business Journal that the most recent regulation put in place – the Cross State Air Pollution Rule, or CSAPR – likely won’t have a major impact on coal producers. Yellowhammer News: World’s largest
Alabama business roundup: headlines from across the state
Here’s a roundup of some of the top business headlines from across the state you may have missed this weekend: AL.com: Auburn University’s FAA-approved flight school for drones to launch in July Auburn University’s FAA-authorized Unmanned Aircraft Systems Flight School is expected to be ready for lift-off next month, according to Alabama Newscenter. Bill Hutto, director of the Auburn University Aviation Center, said the flight school for drones will begin offering classes to the public in July, according to the report. In April, the university announced the FAA’s approval of the project, which Alabama Lt. Gov. Kay Ivey called a “major win for the state.” The flight school will offer flight training outdoors as well as classroom instruction on safety and other topics. In addition, the training center will administer the written exam and flying test required by the FAA. In the future, Hutto said the university will offer courses more specialized in specfic fields, such as agriculture, law enforcement and other careers that may benefit from drone use. “This is an honor for Auburn University,” said Bill Hutto, director of the Auburn University Aviation Center. “We will conduct commercial flight training for operators of unmanned aircraft systems outdoors and untethered. We will have the ability to offer training courses at different locations here and around the state for Auburn students, faculty, members of other public agencies and the general public.” Alabama Newscenter: Coastal Alabama Business Chamber a global finalist The Coastal Alabama Business Chamber in Gulf Shores is one of three finalists for Chamber of the Year in the worldwide Association of Chamber of Commerce Executives. Thirty-three members were invited to apply for the prestigious honor based on metrics including finances, membership retention, objectives, staff size, population size and other key benchmarks. The other two cities that qualified are Lake Houston, Texas, and Vail, Colo. “We are beyond honored to be selected.” Ed Rodriguez, executive director of the CABC, said, “It shows that people are taking notice of our incredible members and their dedicated service to this community.” Rodriguez has served as the executive director of the chamber for four years. He is a fourth generation Floridian, and has always lived and worked in a coastal area, so when this job opened, it was a natural move. “There are so many similarities between my home at Amelia Island and here at Gulf Shores. Both are islands based on tourism economy, both have historic forts, and both have huge shrimp festivals! I love being here.” Rodriguez, 53, has led the small staff of six to one of the top honors in the profession. What is his secret? “We have a large volunteer base that serves our membership, literally hundreds of volunteers. I have never seen a similar group of people so dedicated to service and selfless giving,” he said. “They operate with the motto: ‘It is not about us. It is about our community.’ We had 500 volunteers during the Shrimp Festival and countless others for the Reef Foundation, Entrepreneur Academy, Education Foundation, Coastal Christmas Initiative, Merry Market Festival, and many other programs. We are literally changing lives and improving our economy right here on the Alabama Gulf Coast.” When asked what makes the Coastal Alabama Business Chamber different, Rodriguez smiles. “We have another motto we live by: ‘We are not your grandpa’s chamber!’ We have members with massive amounts of energy fueling our programs and activities,” he said. “They sacrifice so much, and every minute they give is a minute away from their business. Our chamber is a battleship full of people working together to make it all happen.” The ACCE Conference will be held in Montréal, Canada August 11-14. The top three finalists will be interviewed and asked to show more data and metrics, and then a winner will be named. Alabama Newscenter: It’s official: Hyundai signs four-year sponsorship deal with NFL Hyundai Motor Co. signed a four-year deal with the National Football League to become an official sponsor of the most-watched sports league in the U.S. The Seoul-based company will be able to use NFL trademarks and have access to major events, according to a joint statement from the NFL and Hyundai. Financial terms weren’t disclosed. The deal comes amid the Hyundai’s efforts to cut costs and reduce production as sales and profit declined after a stronger won and weaker yen undermined the company’s ability to compete against Japanese rivals. The carmaker is counting on the new NFL deal to boost market exposure in the U.S., which will ultimately lead to an increase in sales. As part of the new sponsorship, Hyundai will have use of NFL trademarks across various marketing channels, including branded content, advertising and promotional materials. The NFL has become a year-round sport and Hyundai will have access to some of the biggest events on the calendar, such as the Super Bowl, NFL Combine, NFL Draft, NFL Kickoff and NFL Playoffs. Hyundai will also provide promotional vehicles at the Super Bowl and other events throughout the year.“We are huge football fans at Hyundai and feel there is no better venue to reach consumers, increase consideration and tell the Hyundai brand story,” Dave Zuchowski, chief executive officer at Hyundai Motor America, said in the statement. “We can’t wait to show the NFL’s 188 million fans the great design, advanced technologies, dynamic performance and numerous safety features within theHyundai lineup.” “We are pleased to welcome Hyundai to our family of sponsors,” Renie Anderson, the NFL’s senior vice president of sponsorship, said in a release. “We appreciate Hyundai’s enthusiasm as we work together to reach our fans with innovative programs during our season and with our major calendar events throughout the year.” Hyundai will launch its activation with a major presence during NFL kickoff activities on Sept. 10. Hyundai’s sales in the U.S. rose 2.2 percent to 303,648 units in the first five months of this year, trailing the industry’s average growth of 4.5 percent, according to the company’s website data. Hyundai’s U.S. market share slipped to 4.3 percent this year through May from
Business roundup: headlines from across the state
Here’s a roundup of some of the top business headlines from across the stat you might have missed this weekend: AL.com: Uber cars on Mobile streets, but not yet legal You could say Charles McCann is the prototypical Uber driver: He has a day job managing a storage facility and gives rides in his spare time. Since the company began operating in Mobile recently, McCann, 68, has raked in about $391 during more than 30 trips. And he doesn’t want his new line of work to disappear. A committee of the Mobile City Council will examine next week an amendment that could allow driver’s like McCann, who work for so-called “transportation network companies,” to operate legally in Mobile. But in the meantime, there’s little certainty about where Uber drivers fall in existing law. “I don’t mind doing whatever they want us to do, really,” McCann said Friday from the driver seat of his beige-colored Buick LaCrosse. “I would hate for them to throw us out now because I’ve (started) going.” Uber representatives say communities simply need to catch up with innovation, and some existing transportation companies — shuttle services, taxis and limousines — believe they’re both one and the same. Councilmembers will begin parsing the difference at the public safety committee meeting, which was moved one week earlier than planned, on June 23 at 3 p.m. But the Uber cars remain unmarked and roaming city streets. That fact has already irritated some nerves. On its website, the company said Friday that it will make all Uber rides free “for the short term” to demonstrate its willingness to create new rules in Mobile. An amendment to city law, creating a distinction for companies like Uber and Lyft, which operate primarily through smartphone apps, was introduced this week. During a June 11 press conference, Mayor Sandy Stimpson said the law he sponsored with Councilman Levon Manzie would allow Uber to operate “in a manner that is safe, convenient and best serves the citizens of our city.” Peace offerings aside, some council members feel the company has already chosen to skirt municipal law. An email exchange revealed a rift between the mayor’s office and some council members concerning Uber’s operations without council approval. The mayor’s office has said that the company is operating pending approval of the ordinance changes, a model that’s been done in several cities before. And if the law doesn’t pass, they’ll consider regulating them like all other vehicles for hire. An attorney representing Mobile Bay Transportation Company has called into question the practice, sending a sternly-worded letter to the City Council and its attorney; the mayor, police chief and city attorney. In the letter provided to AL.com, attorney Jarrod White said the company owned by state Rep. Margie Wilcox, R-Mobile, could “immediately go to court and obtain a temporary restraining order against Uber and its drivers” putting a stop to their operation. “However, we see litigation as a last resort and are not going to take such action at this time.” Negotiating elsewhere If past examples are any indication for what the debate could be like, then the outcome could go one way or the other. Uber says it operates in more than 300 cities around the world. There have been some successful regional examples in cities like New Orleans, Chattanooga, Tenn. and Pensacola, Fla. But for every one of those, there are some not-so-positive cases like the outcomes in Tuscaloosa, Auburn and Birmingham. As the chair of the transportation and communications committee, Councilwoman Kim Rafferty led negotiations with Uber in Birmingham. They were careful, she said in a recent interview, about altering their code as so much about the digital ride-hailing business model is still unknown. “We decided instead of saying yes or no and starting to modify our code…what we could do is define them as a transportation company and define their drivers as taxis drivers,” Rafferty said. Representatives for both Uber and Lyft, she said, would later say the law was too “antiquated” and “cumbersome” for them to operate in Alabama’s largest city. That was almost one year ago. “We invited them in. They said no,” Rafferty said. “We passed the definitions; never heard from them again.” Mobile wants to be the exception, the mayor has said, finding a way to let them in. Many Mobile council members, too, have expressed a willingness to keep an open mind and consider all the facts. Drivers in Mobile Kaitlin Durkosh, an Uber spokesperson, said the company has “dozens of local drivers partnering” with it, but declined to give a precise number. In an email, Durkosh said she could not divulge the number of rides completed in Mobile either. Durkosh said: “…what I can tell you is that we’ve seen an overwhelmingly positive response from residents and visitors of Mobile.” At least one of those drivers is McCann, who was trolling for rides early Friday. Many of his trips so far have been around downtown Mobile; but also trips to the airport and one woman who needed a ride to the courthouse after her car gave out earlier Friday morning. McCann said he signed up to be a driver months ago, but wasn’t sure of the city’s prospects. “I finally gave up. I figured they’ll never get in Mobile, either the cab lobby is too tough or Mobile doesn’t want them,” McCann said. He forget about them, until about two weeks ago when he got a call from Uber. McCann said they told him they were close to a launch and asked if he was ready to drive. “And I did it,” he said, “and I’ve never met any of them. I just get with them on email.” Update: This story was updated June 19, 2015 at 8:09 p.m. to include information that Uber will give free rides temporarily. Alabama Newscenter: Economic development alliance in East Alabama sees potential along I-20 For years, economic development partnerships have been forming along regional “corridors” in the state. They include the I-85 Corridor Alliance, the Coastal Alabama Partnership in
Business roundup: headlines from across the state
Here are some of this week’s top business stories from across the state: AL.com: Alabama Gas to return $9 million to customers this winter Alabama Gas Corp. customers will get a little relief on their bills this winter because the company’s earnings and projected earnings exceed the range allowed by the Public Service Commission. The adjustment, which will return about $9.1 million to customers, is part of the PSC’s normal review of the utility’s earnings. A typical residential customer will see a decrease of $3.50 per month from December through March because of the adjustment, according to the company. Savings will vary based on the amount of gas used. The PSC allows Alabama Gas a return on average common equity of 10.5 percent to 10.95 percent. The company’s projected return for the year ending Sept. 30 was above that range, 12.12 percent. At its monthly meeting on Tuesday, the PSC voted to delay the return of the money until the cold weather months because it would benefit more customers, Commission President Twinkle Cavanaugh said. Alabama Gas has about 420,000 customers and has about a 4 percent increase in customers in the winter, according to the company. Birmingham Business Journal: Huntsville named possible location for Dream Chaser landing Huntsville will soon be the location for Sierra Nevada Corp. to conduct a feasibility study relating to a possible Dream Chaser spacecraft landing, which could result in more jobs for the Rocket City. City officials said the studies will begin soon, as SNC begins to examine the possibility of landing the spacecraft at the Huntsville International Airport, according to a report from AL.com. Depending on the results of the study, the Huntsville airport could be the first to accommodate landings, coming back from either the International Space Station or low-Earth orbit missions. SNC first opened in Huntsville in 2012 at 1525 Perimeter Parkway. The firm built their first Alabama-based office in the hopes of attracting a high-skilled local workforce and collaborating with partner companies. Areas of business for SNC include: Communications, navigation, surveillance/air traffic management, integrated mission systems and space systems. SNC primarily serves customers such as NASA, the U.S. Army and Missile Command (AMCOM) and Missile Defense Agency (MDA). Based in Sparks, Nev., SNC has more than 3,000 employees in 33 locations in 18 states The Dothan Eagle: Michelin to invest $22 million in Dothan plant, add jobs An additional 40 jobs are expected in 2016 at the Dothan Michelin plant in an effort to increase production at the facility by 10 percent, officials announced Monday. A news release from Michelin North America stated that the company intends to invest $22 million at the plant, which will include significant equipment upgrades in order to increase the production of its high-performance light truck and SUV passenger tires. The upgrades are expected to be completed by next summer. According to Michelin spokesman Tony Fouladpour, the company’s primary tire lines are the Premier LTX, LTX M/S2 and Latitude Tour. Dothan manufactures the Premier LTX, among other brands. The Michelin news release attributed support for the project to the local Industrial Development Board, which Dothan Area Chamber of Commerce President Matt Parker said assisted the city and Houston County with putting together development incentives for the Michelin investment. Parker said one incentive includes employee training assistance through Alabama Industrial Development Training. “We’re constantly maximizing opportunity with Alabama incentives to keep our plants in operation,” Parker said. “I’m so proud that our community is very aggressive in supporting expansion.” The Dothan facility currently employs 560 people, according to Fouladpour. GulfLive.com: Paris-based aircraft support company opening facility in Alabama A French company says it will open a facility on the Alabama coast to support the new Airbus factory in Mobile. Hutchinson Corp. announced plans for a plant in Mobile on Monday at the Paris Air Show. The center will deliver thermal acoustic insulation systems for airplanes. It will include a repair center and a service center. The industrial development board in Mobile approved tax incentives for the $2 million facility last week. Airbus is a major customer of Hutchinson. The European airplane manufacturer is currently preparing to open an A320 assembly plant in Mobile. Mobile County Commission President Connie Hudson says officials expect other suppliers to follow Airbus into the American market. The Hutchinson facility is expected to being operating later this year in Mobile Aeroplex at Brookley.
