Bessemer Opportunity Zone plans to capitalize on traffic, nearby population and revitalization

It’s been said that the three most important things in real estate are location, location, location.

The City of Bessemer has unveiled its prospectus for a federally funded Opportunity Zone, and the plan talks about leveraging the city’s proximity to more than a quarter of a million people.

While the population of Bessemer is 27,000, it is estimated that the 10-mile radius around the area is home to a population of 271,637 people in 108,674 households, which includes Hoover and Helena. That population generates an estimated $6.2 billion in spending, and officials believe some of that spending can reach Bessemer’s Opportunity Zone.

Lots of traffic flows through and around Bessemer. The prospectus states that 11,000 vehicles travel from Highway 11, 6,000 vehicles travel along 18th Street, 5,500 vehicles travel on 19th Street and 50,000 vehicles travel on I-59 less than a mile from the area. As money is invested into the city, the goal is to capitalize on this surrounding traffic.

An Opportunity Zone promotes investment in distressed areas in hopes of aiding economic and job growth in low-income communities while providing tax benefits to investors. The designation allows for potential funding and resources including Community Development Block Grant, tax credits and incentives.

The Opportunity Zone identified by the city includes downtown, Westlake and a portion of Jonesboro from Fourth Avenue North to Ninth Street. Most of Bessemer’s historic properties, which are part of the Historic District designation, are included in the Opportunity Zone.

The zone has a population of 2,813 people with a median age of 42. It includes 923 housing units with 41.5% being owner-occupied. The median household income in this area is $30,000.

The designation comes with compromises. Certain businesses are not allowed for inclusion within the parameters. These businesses – called “sin” businesses – include massage parlors, hot tub or suntan facilities, racetracks or other gambling facilities or businesses that allow the sale of alcohol for off-site consumption. Ninety percent of funds must be used within the qualified area, and existing businesses must double their investments plus $1.

The Opportunity Zone would complement the ongoing renovation efforts downtown, including the Lincoln Theater, the Train Depot, City Hall, the Freight and Mobility Project and the Multi-Use Trail. The city also boasts of its recent boom in industry, including businesses like Amazon, FedEx, Dollar General, Carvana, Milo’s and more.