Partnerships between local municipal officials and economic development organizations are quite common in recruiting businesses to the area. What is unique about the situation in Shelby County is that commercial real estate developers have also joined this partnership, risking their own capital to invest in developments. They are securing their own private funding sources to build warehousing, manufacturing and light industrial speculative (spec) buildings to attract businesses to Shelby County.

Eason, Graham and Sandner, Inc. is one such commercial real estate developer investing in Shelby County. In 2005, the company identified a site for a spec building within the Shelby West Corporate Park, located in the City of Alabaster at 1-65, Exit 234, just north of the Shelby County Airport. During the acquisition process, it found a potential tenant but there was a problem with meeting a tight timeframe for occupancy. “With the commitment of our contractor- Brasfield & Gorrie, James Dedes of the Shelby County Economic & Industrial Development Authority (SCEIDA), Alex Dudchock- Shelby County Manager and others within the City of Alabaster, we were able to move the project forward,” applauds Mark Byers, SIOR, with Eason, Graham and Sandner.

A project undertaking like this is a win-win for all parties involved. The local municipalities win because they benefit from the tax base that businesses bring in along with creating quality jobs for area citizens, the economic development partners win because they have state-of-the-art facilities to show prospective businesses, and developers win from the return on investment they recoup from leasing or selling the properties.

According to James Dedes, their formula for success is simple, “The public sector can’t do it alone. The private sector can’t do it alone. It takes a joint effort and each party must compliment what the other parties are doing.” Dedes reflects back in 2000 when SCEIDA built its first spec building. The sale of that bilding and a second one built and sold shortly thereafter “demonstrated to the private sector that these types of projects can be profitable in South Shelby County.”

But the winning relationship does not come without some risks. Local municipalities must provide the necessary site infrastructure by offering tax incentives, granting building permits, and coordinating with the utility companies for services. Commercial developers put up their own capital and market the facility with hopes of finding a suitable tenant. However, the payoffs can be very rewarding once the buildings are constructed and occupied.

The City of Alabaster is a major benefactor of this winning combination. Shelby West Corporate Park is flourishing with twelve tenants. One of its tenants is AGC Automotive Americas (recently expanded in the Eason Graham and Sandner building) which employs 321 people. Asset Management Solutions is also a tenant in the building. Other companies in the park include Armstrong Relocation, BTC Wholesale Distributors, Inc., Ditch Witch of Birmingham, National Scouting Report, Guardian Installed Services, Carja Technical Services, Thompson Tractor, Atlanta Hardwood Corporation, and Weller Remanufactured Products.

The economic boom in Shelby County does not stop there. Just a few miles farther South on U.S. Highway 31, off I-65, is another light industrial development in the City of Calera. Shelby Commerce Park, which is marketed by Graham & Company, consists of four buildings. Graham and Company invested $45 million to construct the park’s buildings, which are zoned for class A bulk distribution.

Ogden Deaton, SIOR, vice president with Graham and Company and broker for Shelby Commerce Park is quite pleased with this relationship. “Graham & Company and a private partnership group purchased the 96 acres in 2001 and with the help of Mayor Roy (Calera) and the City of Calera and James Dedes of Shelby County we were able to obtain the necessary infrastructure to begin initial site development.” The City of Calera and Shelby County continued to offer assistance during the entire development process, including providing tax abatements to entice new companies to the area. “We just completed the final phase of the park which now totals over 1.5 million square feet of office and warehouse space and is home to over 500 new employees. With the support of the City and County, we were able to utilize our private funds to create available space to lure prospects to the area.”

Custom Marketing is one of the development’s most successful companies. In fact, the company recently announced a major expansion in Calera. Custom Marketing distributes products for several companies, including the highly successful Southern Living at Home line of merchandise.

Now that the template for success has been established, there will be more and more of these partnerships between the public sector and private sector entities. It’s a winning formula that allows communities to grow commercially, which also has a direct impact on residential growth and overall quality of life.