A landmark
hospital looking for a cash infusion.
A neighborhood in search of a turnaround after years of decline.
An unlikely savior from a distant continent.
All three have come together
thanks to an unusual and little-known government investment program that
allows foreign investors to put money to work in the United States in
exchange for a chance at a visa.
The firm behind the investment is called Shinsegae U.S.A., which is pulling
together 30 Korean investors to pitch in $500,000 each for Physicians
Medical Center Carraway, a city institution that has taken some lumps
in recent years.
The hospital will use the Shinsegae group's $15 million to pay down debt
and buy new equipment.
The investment comes at the right time for Physicians Carraway, whose
predecessor filed bankruptcy. Lately, the hospital and its physician investors
have been striving to get the financial house in order.
Their fortunes seem to be improving.
Physicians Carraway could soon win a rebate of $1.25 million a year in
occupational taxes from the city of Birmingham to go along with the Shinsegae
cash.
Plus, more investor cash from Korea could soon pour in as the Shinsegae
group buys the property the hospital stands on and the buildings it uses,
sold a while back to a real estate firm.
The city also is doing its
part in this story, which will provide a major boost to the Norwood neighborhood
where the hospital has operated for a century.
Mayor Larry Langford last week decided to give the Korean investment group
the old McArthur Elementary School, vacant since 1999 and headed for a
date with the demolition man.
Shinsegae signaled it eventually wants to renovate the structure - at
a cost of between $2.5 million and $3 million - into a teaching center
for Korean nursing students. First, the building will be used as a dormitory
and for English instruction.
A hotel also is in
the works.
All this unlikely investment activity stems from an obscure government
program administered by the Department of Homeland Security. The EB-5
Visa Program works like this: Foreign investors who make a $500,000 investment
in a distressed area can qualify for a permanent Green Card if they meet
certain conditions.
Some have branded the fruit of this program "the $500,000 visa."
For Physicians Carraway, it represents an unexpected bounty.
Greg Paik, vice president at Shinsegae U.S.A., said the group targeted
the Birmingham hospital for investment because it "has a long history,
a good heritage and a great reputation."
And perhaps something more: A brighter future, thanks to these unlikely
partners. Jerry Underwood is business editor of The News. His e-mail:
junderwood@bhamnews.com
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