Press Releases

Council approves up to $1.7 million incentive package for expanding Shipt HQ

PRESS RELEASE                                                                         Tuesday July 10, 2018

Contact: Chiara Perry

Phone: 205-254-2036

Cell: 205-383-8432

chiara.perry@birminghamal.gov

 

BIRMINGHAM, AL – An estimated 881 new jobs are expected in the city as part of the incentive package for Shipt Inc. that was unanimously approved by the Birmingham City Council on Tuesday; the average salary of those positions is expected to be $50,000.

Shipt Inc., a Birmingham-based tech company that was acquired by Target for $550 million last year, recently announced their intentions to maintain and grow their headquarters in Birmingham.

The goal of the incentive strategy is to invest in Birmingham’s workforce and parts of the agreement are dependent on certain employment criteria being met.

The workforce investment strategy is threefold, Carpenter explained. Collectively it will be known as the “Putting People First” program.

  • Talent Investment Program (TIP): Provides additional funding for the company to recruit high-demand, hard-to-reach occupations.
  • Talent Acceleration Program (TAP): Designed to take workers who may be low-skill and low-wage and set aside funding for those employees to access new tuition pools and learn new skills while furthering their education.
  • Talent Optimization Program (TOP): This component is designed to help the company hire local talent. It pushes additional funding to the company as a way to hire Innovate Birmingham graduates and residents of the city. It creates a pool of funding to partner with universities and other local entities to train mid-level managers, a group that Carpenter said there is a shortage of in Birmingham (70 percent of Innovate Birmingham participants are city residents).

In conjunction with the Shipt incentive deal, the council also approved the sale of the city-owned parking deck that is attached to the John Hand Building, which will continue to house the expanding Shipt HQ.

The money from the $1 million sale to SPT Parking Deck LLC, a subsidiary of Shipt, will be transferred to the newly formed Community Revitalization Fund, established by Mayor Randall Woodfin to address issues surrounding infrastructure and weed abatement in Birmingham’s Neighborhood.

This press release is a contribution from Cody Owens in the Office of Public Information for the Birmingham City Council. For media inquiries please contact Birmingham City Council Interim Director of Public Information Chiara Perry at 205.383.8432.