The Birmingham City Council approved nearly $4 million to continue the demolition of the former Carraway Hospital and signed a new agreement to spend millions developing the property.

Corporate Realty bought the Carraway Hospital site in 2020 after the city re-zoned the property for mixed-use and approved over $13 million in incentives, including a $4.1 million grant to help the company acquire the property.

The incentives also include $9.1 million, which would be based on tax revenues generated by the entire development.

The planned $340 million development, now referred to as "The Star at Uptown," is intended to include single-family and multifamily residential properties as well as hotel, retail, office and entertainment facilities.

It could also potentially include a new amphitheater, which would replace the existing Oak Mountain Amphitheatre in Pelham. The new theater would be owned by Birmingham Jefferson Convention Center (BJCC) and managed by Live Nation. It would be slightly smaller than the 10,500-seater in Pelham, inclusive of only 8,900 to 9,000 seats.

If the amphitheater project moves forward, it would require a $5 million investment from the city.

Birmingham Mayor Randall Woodfin convinced the council to fork out $3.7 million for demolition during their meeting on Tuesday, according to reports. The money will come from American Rescue Plan Act funding and will be an advanced payment of the $4.5 million in future tax abatement that has been promised. 

Demolition of the property already began over the summer.

The council also forged a new agreement with Northside Redevelopment LLC, which, according to Iron City Ink, is the name Corporate Realty is using to carry out the development project. The Carraway property, as well as many of the properties in the surrounding area, are listed under the Northside name in the Jefferson County Parcel Look-up. 

Under the amended agreement, the city promised a total of $12.35 million for the project, which is expected to cost $346 million. This includes the $4.1 million grant already paid for property acquisition, the $3.7 million for continued demolition and $4.55 million in incentives.

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