One of the most prominent vacant buildings in downtown Birmingham is about to get a $24 million transformation into 140 workforce housing apartments thanks to opportunity zone funding and a new initiative by the city of Birmingham.

Birmingham Mayor Randall Woodfin used the redevelopment announcement of the Stonewall/American Life building at 2308 Fourth Ave. N. to unveil the Birmingham Inclusive Growth (BIG) Partnership, a two-pronged effort to identify potential opportunity zone projects in one of the city’s two dozen designated opportunity zones, and to work with a separate investment board to find opportunity zone dollars to fund those projects.

“We believe that this innovative vehicle can help drive investment in Birmingham’s 24 opportunity zones – guided by community voice, bolstered by city resources and elevated by respected leaders in the investment community who believe in Birmingham’s potential,” Woodfin said.

Although the opportunity zone projects announced in Birmingham thus far have been mostly downtown, Woodfin noted that potential exists in almost every part of the city.

“They touch 77 out of 99 neighborhoods,” Woodfin said of the 24 opportunity zones in Birmingham. “That is a major, major opportunity – pun intended – to invest in the entire city, not just the central city.”

Birmingham in opportunity zone spotlight with $24 million American Life project from Alabama NewsCenter on Vimeo.

Woodfin said the city is working with Opportunity Alabama on an educational program that will see 500 residents trained by June 2020 in identifying and presenting opportunity zone projects.

Alex Flachsbart, founder of Opportunity Alabama, said Birmingham is prepared to be a leader in how opportunity zones are designed to help elevate communities.

RELATED: Alabama, Birmingham preparing for economic impact ofOpportunity Zones

“We have been excited for months now about releasing to the public the city of Birmingham’s incredible vision for opportunity zones, which Opportunity Alabama has been an integral part in creating and now bringing to life,” Flachsbart said.

“Where we see the greatest potential is in Birmingham’s 77 neighborhoods that are all in opportunity zones and that all have the ability to surface projects just like this one,” he said. “That’s why over the course of the next two months we’re putting together a first-of-its-kind-nationally educational curriculum designed to help communities understand how this program can benefit them and raise projects up in all the neighborhoods so that we can see opportunity zone capital flowing out to the entire city and not just downtown.”

Woodfin said the American Life building is symbolic.

“If you drive along on any highway that surrounds downtown, you can’t help but notice the 12-story, blighted building that we’re standing in front of right now,” Woodfin said. “At the top of this building, above cracked windows and shuttered doors, are painted words ‘American Life.’ For the last four decades, these words suspended on an eyesore in our city center have hung over Birmingham as a constant reminder that even though we enjoy pockets of prosperity, hardships still persist in Birmingham and all of our Americans’ life. But today we are announcing that the American Life building is once again going to be filled with life.”

Ed Ticheli is the owner and developer of the American Life building.

“We’ve owned the building since 2004 and we’re about to put her into service with 140 units of workforce housing,” Ticheli said.

Ticheli said the apartments will not be low-income housing that requires a separate approval process. Rather, rents are designed to provide affordable apartments for the working class who desire to live closer to their jobs.

Ticheli said rents will run from $700 per month to $1,200 per month and will average 750 square feet. He said the units will be small as 350 square feet and as large as 800 to 1,200 square feet duplexes on the first floor.

Five of the units will be reserved for placements by the Dannon Project, which helps people reintegrate into the workforce after prison or other obstacles.

Demolition and abatement work will begin in the next 45 days and the project will take about 14 months to complete. PNC Bank is financing.

Ticheli said it was the opportunity zone designation that helped make the project a reality.

“It’s been a godsend, not just for our team, but for the city of Birmingham because now the people who commute and hour and a half each way will have affordable housing here,” he said.

Ticheli said although the building has most recently been known as the Stonewall Building, he is leaning toward using the American Life name.

“I really do like ‘American Life’ because it symbolizes what we’re doing here,” he said.

The Stonewall/American Life building is about to go from eyesore to workforce housing thanks to opportunity zone investment. (contributed) The Stonewall/American Life building is about to go from eyesore to workforce housing thanks to opportunity zone investment. (contributed) The Stonewall/American Life building is about to go from eyesore to workforce housing thanks to opportunity zone investment. (contributed)

Ticheli is eyeing an additional project next to the American Life building.

“Hopefully we will get the other 400 units up next door in time to come, with retail and a 600-space parking deck,” he said. “I think it’s going to be a game-changer. You’re right by the highway. If we put a nice little grocery story in here, I think it’s going to be fantastic.”

Woodfin was joined by Los Angeles Mayor Eric Garcetti and Columbia, S.C., Mayor Steve Benjamin, both of whom serve on the advisory council of Accelerator for America, which has spearheaded the opportunity zones initiative across the country.

“Our signature work that brings us here to Birmingham is opportunity zones – this moment to say to any community that your ZIP code is not a debit, it is an asset,” Garcetti said. “That it will attract investment, but we will make sure that that investment brings the community with it – listens to, comes from and hand-in-hand, that’s what we see here. That is exactly what is happening in Birmingham.”

Benjamin, who is president of the U.S. Conference of Mayors, said “Birmingham is very much on the leading edge” when it comes to adopted opportunity zone policies.

“We’re here because opportunity is here in Birmingham,” he said. “We’re here in Birmingham right now because we are learning from Birmingham. The reality is that Birmingham is a leader in this movement.”

That’s music to the ears of Flachsbart, who has been singing the tune of opportunity zones in the state for the past year.

“When you go back to the policy goal of opportunity zones, it wasn’t just to do the big buildings downtown, it was to do the little things in neighborhoods,” he said. “And, more importantly it was to facilitate investment into businesses, into startups that are located in communities across the U.S. Here in Birmingham, we have a comprehensive strategy for building a pipeline, both on the real estate side and on the active business side, to service those opportunities, bring local capital to those opportunities, and help to see a whole new wave of additional growth. While we’re all standing here today talking about this and while we’re all incredibly excited about it, I think the real story is going to come over the next two or three months as this effort starts to roll out on a citywide basis.”

While real estate projects have been the biggest beneficiary of opportunity zone investment so far, Flachsbart said there is some clarification of the opportunity zone regulations underway now that should see more investment flow into startup companies and active businesses.

“We’re very hopeful, based on initial guidance that we’ve gotten publicly from Treasury, that that is going to throw the doors wide open for investment into the exact kinds of startups and operating companies in neighborhoods that this program was supposed to promote in the first place,” he said.

David Fleming, CEO of REV Birmingham, said Birmingham saw it important to be an early adopter of opportunity zones so the city could capitalize once investors were ready.

“Having an intentional strategy is really important and then having projects like this one announced today in Birmingham as a potential recipient of that shows that it does have an impact,” Fleming said.

The American Life project could be the first of many examples.

“This is a great project,” Fleming said. “We’ve been hopeful for years that the right thing would happen here. Really, the planets lined up between getting the state historic tax credit a few years ago to twin with the federal, and then now the opportunity zones is going to help make this project happen. Hopefully this will be a model that a lot of people will replicate around Birmingham.”

Josh Carpenter, director of Birmingham’s office of Innovation and Economic Opportunity, said opportunity zones are a great tool the city can use for growth.

A Meeting of the mayors from Birmingham; Columbia, S.C.; and Los Angeles took place as part of the opportunity zone initiative announcement. (Michael Tomberlin / Alabama NewsCenter) Officials announce the redevelopment of the Stonewall/American Life building and the launch of new opportunity zone initiatives for Birmingham. (Michael Tomberln / Alabama NewsCenter) The Stonewall/American Life building will have 140 workforce apartments after a $24 million transformation. (Michael Tomberlin / Alabama NewsCenter)

“The BIG Partnership is another way that Birmingham is telling the nation that we are open for business.,” he said. “The BIG Partnership could become a model public-private endeavor that harnesses the investment expertise of our investment committee, the convening power and resources of the city and neighborhood-level expertise to drive inclusive growth in our community.”

Garcetti said Birmingham will be held up as an example to others.

“Folks, take it from Accelerator for America. We’re working with 30 cities right now across America in opportunity zones and to all of them and to every city in America we say, ‘Look here at Birmingham,’” he said. “We have been blown away by the partnership, by the success of state and local folks across party lines coming together and do what’s right. Revitalizing an iconic part of this city – this metaphor for an American life and what America’s life can be like in the future – and making sure there is a return for investors while there is a return for community. It can be a win-win and Birmingham is showing us that way.”

The website for the BIG Partnership is www.birminghamoz.org.