http://www.al.com/business/index.ssf/2014/01/ten_projects_that_qualify_for.html
Ten Alabama historic building renovations will get the $20 million in initial tax credits as part of the inaugural Alabama Historic Rehabilitation Tax Credit program, officials said today.Four of the 10 projects are in Birmingham, two are in Mobile, two in Tuscaloosa and one each in Montgomery and Anniston.
Altogether, private investors plan to spend $87.4 million to return 14 historic buildings to productive new uses. The projects are expected to generate more than 2,300 new jobs and add $70 million in new salaries over the next three years, officials project.
The projects are among those to apply for the new tax credits – which allow owners to claim tax credits for 25 percent of eligible costs – under a program passed by the Legislature last spring that mirrors a federal program aimed at preserving and revitalizing historic buildings.
Since October, the Alabama Historical Commission has used a lottery system and other factors to cull and prioritize the 21 applicants for the initial $20 million in tax credits. Investors requested $37 million in Alabama income tax credit reservations. The 21 applicants resulted in 12 deemed complete and eligible for the credit.
Since the credits requested exceeded the $20 million cap, the 10 projects have qualified for the 2014 credits and 10 eligible projects are on a waiting list. Many of the wait-listed projects plan to start work in 2014, anticipating receiving credits that will come available in the 2015 fiscal year, beginning Oct. 1, 2014.
The commission said several projects too low on the lottery list to receive a full-credit allocation have deferred their projects until 2015, when they could receive credits in the full amount requested.
Because it is a tax credit, some officials have advocated removing the $20 million cap to help spur more historic renovations that would qualify.
“The historic preservation tax credit really is a smart economic development tool,” Elizabeth Sanders, member of the Alabama Historical Commission, said in a statement. “The more dollars invested in returning old buildings to new uses, the more communities and the state benefit financially. These renovated buildings will serve as economic engines for a quarter century or more.”
The projects qualifying for this year’s credits are:
- Brown Marx Tower at 2008 First Avenue N. in Birmingham to be renovated into retail and apartments.
- Former Federal Reserve Bank of Atlanta, Birmingham Branch at 1801 Fifth Ave. North to be renovated for a hotel and office space.
- Redmont Hotel at 2101 Fifth Ave. North in Birmingham to be renovated and remain a hotel.
- Cain Furniture Company Building at 1716 Second Ave. North in Birmingham to be converted into apartments.
- 951 Government Street Building at 951 Government St. in Mobile to be renovated into retail on the ground floor and apartments on the upper floors.
- Edwards Brothers Furniture Company Building at 558 Dauphin and 5 North Cedar St. in Mobile to be renovated into retail and apartments.
- Norton-Cochrane-Fitts Residence at 19 Audubon Place in Tuscaloosa to be renovated as a private residence.
- First National Bank of Tuscaloosa at 2330 University Blvd. in Tuscaloosa to be renovated into a commercial mixed-use project.
- Jefferson Davis Hotel at 334 Montgomery St. in Montgomery to be renovated into apartments.
- Fort McClellan Headquarters and Barracks at 179, 180 & 223 Headquarters Rd., 615 Powers Ave., and 436 Buckner Dr. in Anniston to be developed into an independent living facility.