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The Birmingham City Council on Tuesday approved a 10-year tax abatement incentive for a firm planning to build an $82 million, 140-room hotel overlooking Railroad Park.
The agreement will abate all non-educational state, county and municipal taxes associated with the project, which will include a restaurant and retail space.
The development firm, Parkside Hotel Partners, plans to build the structure on a brownfield site at 1625, 1627 and 1631 First Avenue South. It would be on the south side of the park, just west of the KultureCity National Accessibility Park being built on the old Powell Steam Plant property. The council also approved the rebate of state lodging taxes for the project through the Sweet Home Alabama Tourism Investment Act.
Rainbow Viaduct study and public engagement

In other business, the council approved a $125,000 agreement with REV Birmingham Inc. to develop and manage a public engagement process as well as develop a request-for-proposal process for the Richard Arrington Jr. Boulevard and 22nd Street bridges, just east of the Parkside area.
The bridge on Richard Arrington, called the Rainbow Viaduct, opened in 1891. Officials closed it to cars and trucks in January 2022 because of structural concerns.
Colin Alexander, program manager for Birmingham’s Department of Transportation, spoke to the council’s transportation committee on Monday about the project. He said that if the REV agreement is approved, the city’s next step will be putting out a request for qualification for a structural study of the bridge.
The REV agreement will run through December 2027.
The council on Tuesday also approved:
- A three-year agreement between the Birmingham Police Department and the U.S. Drug Enforcement Agency for two local police to participate in the DEA’s High Intensity Drug Trafficking Area Task Force as well as the Synthetics Precursors Enforcement and Regulation Task Force. The agreement includes federal funds to reimburse the city for salary, benefits and expenses for the two task force members.
- An agreement giving $219,500 to the Central Alabama Redevelopment Alliance to implement the city’s Nonprofit Accelerator Program. According to the council’s agenda, this project aims to “strengthen the capacity, sustainability, and long-term impact of nonprofit organizations throughout Alabama by supporting grassroots, emerging and community-based nonprofits through training, technical assistance, leadership development and strategic partnerships.”
- A measure setting a public hearing on Oct. 13 for a rezoning proposal that would allow for a new Boys & Girls Club of Central Alabama at 1259 Huffman Road.


