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Senate passes Shoals tax bills

Published: Friday, May 25, 2007 at 3:30 a.m.
Last Modified: Thursday, May 24, 2007 at 11:00 p.m.

MONTGOMERY -- Fears eased Thursday among local economic development and government officials who have been concerned about the future of three bills critical to the Shoals landing a major industry.

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After weeks of being lost in a Senate squabble, senators passed two bills giving authority to commissioners in Colbert and Lauderdale counties to impose a half-cent sales tax.

The money generated goes toward economic development initiatives in the Shoals, including a fund that would provide incentives to a boxcar company eyeing Colbert County for a possible expansion.

Another bill, which sets up a committee to oversee and approve all expenditures from the sales tax fund, was sent to the governor's office Thursday for consideration.

The House, on a 36-0 vote, gave final passage to that bill. Gov. Bob Riley has said he supports the legislation, which would create the Shoals Industrial Development Committee.

Sen. Bobby Denton, D-Muscle Shoals, was able to pass the sales tax bills despite a session-long fight over rules. The bills are now headed to the House in the waning days of the 2007 legislative session, with plenty of time to get them passed.

Without the sales tax, the Shoals cannot deliver needed incentives to lure the boxcar company to the Barton Riverfront Industrial Park. The company plans to employ 1,500-1,800 workers.

The state is also on board with an incentive package designed to attract the railroad boxcar plant, which is known by the code name "Project Tiger."

Company officials have been in the Shoals for the past two days.

Seeing the bills making progress was welcomed news for Colbert County Commission Chairman Rex Burleson and others. He said the incentive money will be instrumental in luring Project Tiger to northwest Alabama.

"It's good they did something," Burleson said. "This is the first step that we have to have to bring in this project."

Lt. Gov. Jim Folsom praised Denton for sticking with his local bills through criticism against him and numerous delay tactics that had threatened to close down the Senate. Tactics included a threat by Riley to stall the remainder of the legislative session over an unrelated $1.052 billion bond issue.

"Everybody knows how hard you worked for this,'' Folsom told Denton while the Senate was in session. "Some of this got caught up in the procedural moves in the session, and you worked very hard for it.''

Although it appeared Senate filibusters would kill the session, Denton remained optimistic and predicted the bills would pass.

"Thank you members of the Senate and both houses for everybody's cooperation in helping the people of the Shoals' district,'' Denton said. "It's a big industry for our area. Now it has to go and pass the House.''

On several occasions, Denton noted the danger of relying on one set of bills. He said important legislation generally is introduced in both houses and travels in tandem. Shoals House members did not introduce the bills, relying on Denton to pass them in the Senate first.

With only three days left in the session, barely enough time to pass the two bills, the strategy almost backfired. In fact, a fourth, less important bill in the package died Thursday because it was delivered to Denton virtually too late in the session for introduction.

That bill would have revamped the Shoals Economic Development Authority board by reducing the number of board members.

SEDA Executive Director Forrest Wright said Denton should be commended for hanging tough when it appeared the session may end without passage of the bills.

"Senator Denton has accomplished a yeoman's job at getting that legislation through the Senate,'' Wright said. "Of course, we're not home free until it's through the House and the governor signs it.''

Rep. Mike Curtis, D-Greenhill, said the bills will receive priority attention in the House.

"He got them through and we're working as a delegation to get this done; it will move out of the House,'' Curtis said of Denton. "After the (ThyssenKrupp steel plant), this was the second major industry for the state. We're looking at 1,500 to 1,800 jobs and it's very important.''

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


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