While Michigan's economy is still in trouble, Birmingham is ending the year on a economic high note and poised for what looks to be a bright 2011.

Boosted by Oakland County's AAA bond rating and low debt, Birmingham saw the addition of 23 new retailers since February 2010, with 11 stores closing.  This boost in business has inspired optimism among residents, city leaders and retailers, according to John Heiney, director of Birmingham's Principal Shopping District (PSD). 

Oakland County Executive L. Brooks Patterson, who spoke at an event in October hosted by the Mackinac Center for Public Policy at the Townsend Hotel, said Birmingham is expected to thrive in the coming years. "If Oakland County is the brightest galaxy in the state of Michigan, then Birmingham is the brightest star in that galaxy," he  said.

Thriving in a down economy

It's a story Michigan residents know all too well:  The bankruptcies of automakers General Motors and Chrysler sent Oakland County's unemployment rate soaring to 15.6 percent in 2009, higher than the state average of 15.2 percent. 

The loss of jobs from GM, which was Oakland County's largest employer, sent an already-suffering market reeling.  In Birmingham, the closure of Jacobson's department store in 2002 had already hurt the community's property values.  Coupled with storefronts that were still empty, Birmingham braced itself for the ?? market's blows.

This had been the story for many cities throughout Metro Detroit, but Birmingham and Oakland County were able to write their own endings.  The county earned an AAA bond rating in 1998, one of only two counties in Michigan and one of only 32 counties nationwide to earn this distinction. The rating gives Oakland County access to the lowest possible interest rates to fund projects.

Since 1994, Oakland County hasn't had any pension costs (using, instead, a pension trust fund), saving a total of $70 million over 16 years.  In 2009, the county went from a two-year to a three-year balanced budget, allowing county and city leaders to better observe economic trends and react to them.

A small-town standout

Birmingham, however, has gone beyond Oakland County in restoring its economic health.

"Birmingham has become an all-around business hub," Heiney said.

With Internet companies such as Google and AOL, law firms such as Clark Hill and financial houses like Munder Capital, Heiney said Birmingham is working to strengthen its economic foundation by keeping professional services in mind.

"Most of these (firms) choose Birmingham for its quality of life," Heiney said. "They particularly like having restaurants and entertainment venues within walking distances of their offices."

With a workforce that is already highly educated, Patterson urged Birmingham to continue attracting knowledge workers. The number of employees in professional services careers is expected grow by 17 percent by 2018, according to the Bureau of Labor Statistics.

"Birmingham would definitely benefit from having more professional service providers here," Heiney said.

The number of shopping and dining options in Birmingham has also contributed to the city's economic vitality.  While the professional firms give Birmingham clout, Heiney said, its cosmopolitan attitude and entertainment opportunities regularly attract residents from surrounding communities.

Although many storefronts are still empty, Birmingham's occupancy rates sit comfortably at 92.6 percent for retail  and 84 percent for office space.

Birmingham is on track to have 23-25 new businesses open this year, Heiney said. That is the average in recent years, but it is particularly impressive this year because of the poor economy, he said.

The city hired a retail leasing consultant last June, who has been working to invite national and local retailers downtown, Heiney said.

Neighborhood support

The key to Birmingham's economic success, however,  lies in the support of its residents and shop owners, Heiney said.

When Scandia Home moved from The Collections at Somerset in neighboring Troy to 237 Pierce Street in downtown Birmingham this summer, it was attempting to be closer to its customer base and find a better atmosphere. What it found was a customer base excited to see more local retailers, manager and owner Maria Jackson said. 

"(People) were worried that Birmingham was turning into a restaurant district, so they were happy to bring back shopping to the downtown," Jackson said.

Retailers aren't the only ones excited, though. Elaine McMahon, retired vice president of small business for Comerica Bank and a 35-year Birmingham resident, claims economic viability is attainable when residents get involved.

"I love this community … and I make a concerted effort to shop in Birmingham," McMahon said. "(People) shouldn't complain about stores going out of business if you're not going to frequent them. If you really care about this city, you should support it."