Incentives could be big part of landing project

A decision appears imminent on a major industrial project that is considering coming to the Shoals.

Barton Riverfront Industrial Park in Colbert County meets site requirements for the company, which has not been identified publicly. The company would bring at least 1,000 jobs, and some with direct knowledge of the project say as many as 2,000 jobs could be at stake.

"This could be the biggest thing in economic development in our area since we landed Ford and Reynolds (in the 1940s and 1950s)," said Florence Mayor Bobby Irons.

Winning the project could come at a cost, though. Local government officials are not sure yet what that price might be or how they will come up with the money needed to lure the company.

Incentives have become a huge factor in recruiting major industries. The state has seen it happen through landing several automobile manufacturing operations in recent years, and the Shoals has experience in that arena when it landed SCA Tissue, a Walgreens call center and North American Lighting.

"At some point, if things go well, I assume there will be a meeting and we'll be told what it will take," Irons said. "Right now, I don't know what we'll have to do.

"We'll have to see what's needed and then determine how we make it happen. We just can't turn our back on this project; it's too important to our area. We'll have to dig deep and do what we have to do."

The Shoals is on the company's short list of about three sites. The type of company looking at the area has not been revealed other than it's a heavy manufacturing operation. Also, the operation will need numerous workers with welding skills.

Northwest-Shoals Community College led an effort last month to identify potential workers in the area with welding experience or an interest. More than 2,800 people responded to the survey, seemingly answering the company's question about available work force.

Officials in Montgomery who have been involved in the project say the company could make a decision within weeks, possibly late this month or in early December.

Forrest Wright, executive director at the Shoals Economic Development Authority, has declined to discuss the pending project. He said, however, that major projects "require a very supportive community."

"It's a business deal for the company. It's certainly not a social service process," Wright said. "It's a very competitive process.

"It's a business deal to the community, too. Our community measures the financial impact of a project and uses the analysis to determine if it's a good financial decision for the community."

Muscle Shoals Mayor David Bradford, like Irons, also anticipates a meeting at which incentives will be discussed. He has been advocating for several years that the area find a sustainable economic development incentive fund. He said that would allow the area to proactive when potential projects consider the Shoals instead of reacting.

"You've got to have property available and infrastructure available for companies looking to come in to your area," Bradford said. "You've got to be willing to give noneducation tax abatements and work with them on building permits and those type things.

"You also have to provide cash incentives if you're going to compete with other sites in this country and other countries. That's just the way it is."

Both mayors said it's unclear how much would be needed from local governments. They also know local governments have either tapped out or are close to depleting local reserves and other available funding options.

Muscle Shoals, for instance, contributed money to help land SCA Tissue and had to carry the largest financial burden in the recruiting of Walgreens and North American Lighting. Bradford and other city officials in Muscle Shoals wonder where more money from his city would come from for the pending project.

"We don't know what it will take," Bradford said. "I know the (Alabama Development Office) is preparing to make a final proposal, with the input of SEDA. I'm sure it will be a substantial amount from the state, and I would think our responsibility would have to be substantial, too."

Muscle Shoals put in $200,000 in cash to help land the North American Lighting project. That doesn't include providing the property and tax abatements. The city also has about $1 million tied up in matching money to help land grants to pay for infrastructure improvements at the Shoals Research Air Park, where the plant is being built.

"We'd have to determine what it's going to take, the kind of jobs involved and where we can find the money," Bradford said. "I do know that projects with this number of jobs are few and far between. We don't want to lose it because this could have a positive influence on our community for 25 years, 40 years and 50 years from now.

"A project like this will take municipal governments, county governments, the state, federal resources and, most of all, community support to get it. You're not going to send a batter to the plate without a bat and ask him or her to hit a home run. We've got to have everyone supporting this to get it done."

Irons said he's confident the area will deliver as it has on other projects.

"It will take creative thinking on a project of this size," he said. "We'll sit around a table and determine how we can best deal with the requirements.

"We'll deal with it with the same attitude we've had on other projects. We'll get it done. It's just a matter of how. There's not an 'if' in anyone's mind."

Bradford agrees, but he added that this effort would be made much easier if the area had an economic development fund already in place, one that sustains itself. He said the fund should be completely separate from the money needed to offset operation expenses at SEDA and should be controlled by the government entities involved.

"Regardless of what happens to this project, we need to develop an economic incentive fund," Bradford said. "I know it's not going to be easy, and some people will disagree, but it's needed if we really want more jobs and good jobs as everyone tells us they want.

"It's something that probably should come up if we reach a point where we hold that meeting. Is it worth it to the community to have these jobs that could be here for the next 50 years and could provide a future for our children and grandchildren? If it's not worth it to put ourselves in a position to compete for this and other projects, then let's quit talking about jobs."

Tom Smith can be reached at 740-5757 or tom.smith@timesdaily.com.