Senate follies slow approval for incentives

MONTGOMERY -- Gov. Bob Riley is hoping German steel maker ThyssenKrupp chooses Alabama today over Louisiana for its $2.9 billion, 2,700-employee plant.

An announcement is expected at 10:30 a.m. today about the plant that could be built in south Alabama.

No matter ThyssenKrupp's decision, a major project for the Shoals is in the wings.

Identified by its code name, Project Tiger, the plant could create more than 1,500 jobs and pump hundreds of millions of dollars into north Alabama's economy.

"We commonly say this is the biggest thing that could happen to the Shoals since Reynolds,'' Tuscumbia Mayor Bill Shoemaker said Thursday.

Meanwhile, northeast Alabama legislators, especially those in Gadsden, are counting on Riley to work toward completing Goodyear's modernization project.

A modernization of the Goodyear tire plant could preserve hundreds of jobs. It's the largest employer in a town that saw the closing of a major steel plant.

"The economic impact of this is 1,300 or 1,400 employees and I think the payroll is around $82 million,'' said Gadsden Mayor Sherman Guyton.

He said the total economic impact is about $550 million. "It's critical we get it,'' Guyton said.

Goodyear's needs aren't as time critical as Project Tiger's. Guyton said Goodyear could take several years to invest $125 million to $150 million on its upgrade but its investment depends on local incentives.

The Shoals project that would locate in Colbert County depends greatly on the state's incentive package that includes significant contributions by Shoals' governments.

And the vehicles for that significant contribution are tied up by partisan bickering over unrelated issues in the state Senate.

Local governments in the Shoals have agreed to seek a half-cent sales tax increase to pay their share of Project Tiger incentives. Those sales tax bills are stalled in the Senate.

"It's essential this legislation passes, otherwise we don't have the revenue to pay incentives for them to come here,'' Shoemaker said.

Riley said earlier this week that time is not yet critical for Project Tiger legislation but he does want the issue resolved by the end of the session in mid-June.

"It is not a deal killer if it doesn't pass tomorrow, but we need it in a couple of weeks,'' Shoemaker said.

Shoemaker said local officials have signed a confidentiality agreement that prohibits discussing Project Tiger's requirements.

"A lot of people have expertise on the tally and what the payback is and what kind of revenues will our area receive,'' Shoemaker said. "The (payback) range is in the area of 10 years. There are some parts ... that could extend 12 years to 13 years' payback.''

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