Birmingham Mayor Randall Woodfin; Tad Snider, executive director of BJCC; and attorney from city law department speak to city councilors about BJCC stadium funding agreement at March 27, 2018 City Council meeting. (Erin Edgemon/eedgemon@al.com)

The Birmingham City Council on Tuesday committed to contributing $3 million a year for 30 years towards the expansion of the Birmingham-Jefferson Convention Complex which includes a downtown stadium and renovation of Legacy Arena.

The council approved the funding and project cooperation agreements between the city and the BJCC in a 6 to 3 vote.

Councilors Lashunda Scales, Sheila Tyson and Darrell O'Quinn voted against the measure.

The council unanimously approved a resolution that will create a neighborhood revitalization fund.

Mayor Randall Woodfin said the revenues generated from the expansion of the BJCC and new development of the surrounding property will go towards neighborhood revitalization in all 99 neighborhoods.

Tuesday's vote came after four hours of public comment and discussion from councilor members.

"This is the right thing to do because it has a full benefit for our entire city," Woodfin said. He said this project is necessary because of neighborhood revitalization, tourism and progress.

"We can support neighborhood revitalization and economic development," he said.

Woodfin said the city doesn't have to choose between a downtown stadium and Legion Field. He said the city can do both with the additional revenues generated by the BJCC expansion.

Birmingham will pay $3 million annually, beginning this year, on the debt service of city-supported bonds for a period of 30 years, according to the funding agreement. The city will pay using proceeds from the occupational tax or another unspecified tax.

The principal amount of the city-supported bonds is an estimated $46.1 million.

The agreement will terminate if the bonds haven't been issued before the end of the year, according to the agreements.

The BJCC's 20-year, $300 million master plan includes the construction of a $174 million open-air stadium, a Legacy Arena makeover and an outside piazza renovation.

The stadium would have up to 55,000 seats and additional meeting and exhibition space. The Legacy Arena improvements include adding new luxury suites, a club lounge, upgraded concession stands, expansion of the concourse and exterior updates. The loading docks will also be improved and the locker and dressing rooms modernized.

According to a study commissioned by the BJCC, the expansion of the BJCC will generate just under $500,000 in additional revenues to the city each year. Additional city revenues could reach $9.9 million a year with the BJCC expansion, two new hotels near the BJCC and the former Carraway Hospital being redeveloped into a retail and entertainment district.

Several residents expressed their frustration to city councilors over the deal. Supporters included first University of Alabama at Birmingham football coach Jim Hilyer and current UAB football players.

Susan Palmer, president of Central Park Neighborhood Association, said she has a petition for councilors from residents against the city contributing to the project.

Instead of contributing to the BJCC expansion, she asked that the city make the 99 neighborhoods, the schools, the crime and the city the top priority.

Robert Walker, vice president of the Wahouma Neighborhood Association, said the project is wrong for the city.

"It doesn't benefit us anything to build this stadium here," he said. "I ask you to do something different. The people don't want it."

Walker said if the city really needs a new stadium, then build it on city-owned property and not BJCC property.

Edna Freeman, of the Druid Hills neighborhood, which borders the BJCC property, said she doesn't support the stadium. "It will need parking. People will have to move.

"When you talk about four blocks to build a stadium, where is the parking? They are going to buy property for parking," she said.

"We don't need a stadium in our neighborhood," Freeman added. "It can go somewhere else. We need our houses developed. We need property where people want to move in our neighborhood, not tear it down."

The Druid Hills Neighborhood Association voted against the project at one of its recent meetings. The association has supported a dome stadium in the past.

The Rev. Gwendolyn Cook Webb said no vote should take place until the people are allowed to be heard. "The people haven't been heard yet," she said.

"It is like we are going back to the '60s," she said. "'You do what I say do,' is what I heard this morning."

Financial contributions

The BJCC Authority is committing $10.7 million to the annual debt service on the project. Jefferson County has committed $1 million a year for 30 years. UAB and corporate partners have committed to a combined $4 million a year for 10 years through a lease agreement, sponsorship and naming rights.

In the agreement with BJCC, UAB football agrees to a 20-year lease at the new stadium.

The Alabama Legislature passed a bill last week to levy a 3 percent tax on auto leases and rentals in Jefferson County to help support the debt service for the project.

The tax has been on the books since 2001, when it was proposed to help build a domed stadium. The tax, though, has never been collected. The bill would start collection of the tax when the BJCC Authority contractually commits to building the stadium.

When asked what happens after Tuesday's vote, Tad Snider, executive director of the BJCC, said the BJCC's agreement with UAB and corporate commitments need to be finalized.

From there, the BJCC will prepare to go to the bond market and then seek bids to hire engineering, architecture and construction firms and other professionals, he said.

The project cooperation agreement states that the project will commence construction no later than Jan. 1, 2019. The BJCC should make all efforts to have the project completed by July 1, 2021.

According to the agreement, the BJCC will give monthly reports to the city council.

This report will be updated.