Noted Alabama economist Keivan Deravi, Ph.D.,* studied the economic impact of the Cahaba Center at Grandview and the relocation of Trinity Medical Center. His extensive report was included as part of Trinity’s application to the State Health Planning and Development Agency.

Highlights of the report include:

Year One Impact

• Activities related to the first year of construction and operations are expected to generate:
• 3,931 jobs
• $125,526,640 in job earnings
• $376,580 county tax revenues
• $2,761,586 city tax revenues

Phase I Impact

• First three years after initiation of construction
• Activities include completion of hospital structure, construction of two adjacent medical office buildings, two hotels, numerous retail operations, an office building and four parking decks
• Economic impact of construction and operations = $881,258,708

Phase II Impact

• Years four – 14 after initiation of construction
• Activities include construction of four additional office buildings and four new parking structures
• Economic impact of construction and operations = $482,518,934

15-Year Impact

• Total tax collection over a 15-year period (from commencement to completion of the project) could top $142 million of the City, $37 million for the County and $48 million for schools.
• As operations ramp up, thousands of permanent jobs would be created in the new hospital, hotels, office buildings and retail businesses of the Cahaba Center. When the development is complete, an estimated 5,500 people could be employed at Cahaba Center, creating a total economic impact of more than 9,000 local jobs and $405 million in additional annual earnings for the region.
• Dr. Deravi describes the economic impact estimated for this project as comparable to that of Alabama’s recent most prized and recognizable economic developments, including some of its automobile and mega projects.

 

*

Keivan Deravi, Ph.D., is an economics professor at Auburn University Montgomery.  Dr. Deravi has been a consultant to a major lobbying firm in Washington, D.C. as well as law firms in New York and Alabama. He has been quoted in the Wall Street Journal, London Financial Times, and Forbes magazine. He is the author of many journal articles. His research papers have appeared in a wide range of professional journals, including Journal of Banking and Finance, Economic Inquiry, and Southern Economic Journal, three of the most prestigious economic journals.