Legislators consider plan to lure industry

MONTGOMERY -- Legislators on Monday began considering Gov. Bob Riley's plan to increase industry recruiting incentives by $400 million to lure up to 10,000 jobs to Alabama, including a German steel maker.

ThyssenKrupp wants to locate a 2,700-employee steel plant either in Mobile County or Louisiana.

The Shoals hopes to be chosen for a 1,500-job plant, and an industry with between 500 and 1,000 jobs is being courted for Montgomery. As many as 10 or more projects with at least 10,000 jobs are being targeted, Riley's office said.

While no one is predicting Riley will fail in his attempt to increase the Capital Improvement Trust Fund bond ceiling from $350 million to $750 million, Senate Democrats said they want assurance the incentives will-be used for the right-projects.

Sen. Lowell Barron, D-Fyffe, said Democrats plan to amend Riley's proposed constitutional amendment to require a unanimous vote of the five-member CITF review-committee.

Barron said the committee, consisting of three gubernatorial appointees and two legislators, can approve a project with only three votes.

"The governor still will be driving the ship, but I believe he should have more oversight,'' Barron said. "If the projects are meritorious, then there should be no problems with it.''

Riley also wants legislators to create two irrevocable trusts to begin paying for health-care benefits for retired teachers and state employees.

Riley called the Legislature into special session at 5 p.m. Monday and asked House and Senate members to increase the CITF borrowing capacity.

If the Legislature approves the constitutional amendment, voters would consider it in a June 5 referendum. Voters approved the $350 million CITF ceiling in a 2000 constitutional amendment.

Sen. Bobby Denton, D-Muscle Shoals, said Riley's proposals-need to be handled swiftly but-correctly.

"The problem with these administratively is deciding where the money goes,'' Denton said. "We need to do it right.''

Sen. Roger Bedford, D-Russellville, said lawmakers planned to meet with Riley to inform him of concerns. He said legislators will be the ones who will sell Riley's proposed new industrial bond ceiling to voters back home.

"We're not going to give the governor a blank check,'' Bedford said. "We want to know what (the) companies are and what they want and what other states are offering.''

Bedford said most industrial projects are secret, and they should remain that way.

Riley wants extra bonding capacity to lure ThyssenKrupp, the two other projects and potentially dozens more.

Riley, Lt. Gov. Jim Folsom Jr. and House Speaker Seth Hammett, D-Andalusia, courted the industrial project in Germany two weeks ago knowing that Alabama is competing with Loui-siana for the project.

Louisiana Gov. Kathleen Blanco left for Germany this week for a renewed pitch to the steel company, The Associated Press reported. Louisiana's Legislature in December approved a $300 million cash incentive.

Riley countered this week with assurances from the governors from Mississippi and Florida and the U.S. senators from the three states that would help promote Alabama's proposed site in north Mobile County.

"There is an impressive amount of influence in this partnership between Alabama, Florida and Mississippi,'' Riley said. "If ThyssenKrupp selects Alabama, they will have the united efforts of all three states working with them to make their facility the best in the world.''

Alabama Finance Director Jim Main said Mississippi is competing for the proposed Shoals project, and Georgia is competing for the Montgomery project.

"The projects are time-sensitive,'' Main said. "They want to break ground mid-summer.''

Dana Beyerle can be reached at (334) 264-6605 or dtb12345@aol.com.