City considers $20M incentive to lure $300M project

A proposal for UAB Medical West to relocate its hospital from Bessemer to Hoover has some Hoover residents stirring.

Hoover Mayor Frank Brocato on June 4 announced the city was pursuing a $300 million non-retail project that would bring more than 1,000 jobs to Hoover. Brocato would not name the entity, but sources told the Hoover Sun that the city is indeed in talks with UAB Medical West about relocation.

The area being promoted as a hospital site is along Interstate 459, right next to the Stadium Trace Village development under construction at the entrance to Trace Crossings, one of the sources said. The idea is for the shopping center entrance off John Hawkins Parkway to extend on to the hospital site. Another idea being considered is to build a more direct route off I-459 directly to Stadium Trace Village and the hospital site.

Brocato asked the Hoover City Council to consider committing $20 million to provide land, building site preparation, utilities and traffic improvements to help lure the $300 million project.

“It involves the single biggest investment in our city since the construction of the Riverchase Galleria,” Brocato said. “While this is not a retail project, it’s something that will fundamentally change Hoover for the better. We can’t afford to miss out on this opportunity.”

The mayor said in early June he expected to see an announcement about the project by early July or early August.

Keith Pennington, CEO of the 310-bed Medical West hospital in Bessemer, issued a statement that said the hospital has proudly served residents of western Jefferson County — including Bessemer, Fairfield, Hoover, Hueytown, McCalla, Midfield, Tannehill, Vance and other communities — for more than 50 years and the hospital remains committed to the people of west Jefferson County.

No decision made

“While we have made no secret of our long-term intention to construct a replacement hospital for the current Medical West facility, no decision has been reached on how, if, when or where that project might be undertaken,” Pennington said. “We will continue to evaluate our plans for the future of Medical West so we can best fulfill our mission, which is to provide the highest quality care to all of our communities in a patient-focused environment.”

Three years ago, Medical West opened a freestanding emergency department in Hoover near the intersection of Interstate 459 and John Hawkins Parkway, which is across the interstate from the proposed hospital site.

Last year, there were news reports that Medical West had bought 48 acres in McCalla off I-459 Exit 1, nine miles away. But hospital officials then would not comment on specific plans for the land, calling it a long-term investment for future growth.

Then in April of this year, UAB announced plans to relocate its clinic at 2321 John Hawkins Parkway (near Lake Crest) to the Stadium Trace Village development on the other side of I-459.

The current clinic has about 9,000 square feet of space, and the new medical office building will have 39,000 square feet and house a variety of medical services, including primary care doctors, obstetrics, gynecology, oral surgery and other specialties, UAB spokesman Bob Shepard said.

City Council questions

Several Hoover City Council members would not confirm that UAB Medical West is the project the city is considering.

However, Council President Gene Smith said he does have a lot of questions and concerns about whether the city should spend $20 million or more to bring a $300 million investment with 1,000 jobs to the city.

He wants to know how the entity the city is pursuing will benefit the city and whether it will pay property taxes or generate other revenues for Hoover. “I’m wanting to hear the return on investment,” Smith said.

Smith said he also wants to know if other incentives or tax abatements are being sought.

Councilman Curt Posey said, at first glance, any project that involves a $300 million investment in Hoover and 1,000 new jobs for the city would be great. That will mean 1,000 more people who will be eating in Hoover restaurants and shopping in Hoover stores, he said.

Putting $20 million into making a project like that a reality should be worth the investment, Posey said. “We did the same with the Galleria,” he said.

Still, Posey said he would like to see an economic impact study before making a final commitment to invest that much money. “It’s not my money. It’s the taxpayers’ money,” he said.

Councilman Derrick Murphy said he wanted to get more details about the proposed project and would listen to stakeholders and the mayor’s office before making a decision.

Economic impact

An economic impact study conducted for UAB last year indicated that Medical West had a $169 million economic impact on Alabama in fiscal 2016, including $79.5 million of in-state direct spending by the hospital and an $89.5 million ripple effect of those dollars on other businesses in the state.

That study also indicated Medical West contributed $7 million to state and local governments in fiscal 2016, but the study did not spell out how much of that revenue went to the city of Bessemer, nor how much of the economic impact was in the city of Bessemer.

Former Hoover Mayor Tony Petelos made a big push to get a hospital in Hoover during his time in office. His efforts led to Medical West’s stand-alone emergency room in western Hoover and Brookwood Baptist Health’s stand-alone emergency room at Tattersall Park near Greystone in eastern Hoover, but no hospital.

Some Hoover residents say they don’t want a hospital in their city and don’t want the council to put out $20 million to help bring it.

Brookwood Medical Center, Grandview Hospital, St. Vincent’s Hospital and Shelby Baptist Medical Center are not that far away, Green Valley resident Barbara Wheeler said.”I just thought it was unnecessary,” she said.

Other residents have said they like the idea of a hospital in Hoover, but some residents in other parts of western Jefferson County say they don’t want to see Medical West move from Bessemer.

“I really wish it would stay in this area,” said Jonathan Cole of Hueytown. “It’s closer to get to from Hueytown, Oak Grove, Concord, the Rock Creek area. … It would definitely be a loss for this community. I was born in this hospital 37 years ago.”

If Medical West does move to Hoover, Cole hopes it would at least leave an emergency room at the current location, he said.