State committee OKs bond issue

MONTGOMERY - A state committee Wednesday approved borrowing $305 million to help support 26 Alabama industrial projects including the National Alabama freight car manufacturing plant in Colbert County.

The state Bond Commission approved a $305 million bond issue to pay for approved grants to large and small projects including $220 million for the $3.7 billion ThyssenKrupp steel plant in southwest Alabama and three other major projects.

The commission approved $40 million for National Alabama Corp., the 1,800-job freight car manufacturing plant planned in Colbert County, $20 million for a modernization of the Goodyear Tire and Rubber Co. plant in Gadsden, and $15 million for the Hyundai automotive assembly plant's planned Kia subsidiary.

'This money helps existing Alabama companies and we're going to use it to benefit economic expansion,' said Gov. Bob Riley, chairman of the commission.

The bond issue is a vehicle to raise money from investors and will be paid back over 20 years, state finance director Jim Main said.

The money will be available for state use in early August. Recipients will use the funds to reimburse expenses for their industrial projects. Merrill Lynch and Co. is the apparent lowest responsive bidder of 10 bidders with a lifetime interest rate of 4.42 percent.

'These 1,800 jobs will change our economy for the good as well as enhance the quality of life for northwest Alabama,' said Sen. Roger Bedford, D-Russellville, said about the $40 million for National Alabama plant's construction and equipment purchase.

The company plans to start production of rail cars in 2009 from its location Barton Industrial Park in Colbert County, officials said. Besides $40 million bond for National Alabama, the approval means industrial grants for northwest Alabama communities.

According to Bedford, they include $500,000 to the city of Hamilton's regional airport hanger to boost industrial recruitment, $400,000 for road and water to Vina's industrial park, $32,000 for a geo-technical study of Hamilton's industrial park, $192,736 for road and water to Russellville's industrial park, $125,000 for an access road to the Haleyville-Winston County Industrial Development Authority's industrial park, $200,000 for water and roads to the Lamar County industrial park, and $202,800 for roads and water for the Marion County industrial park.

He said infrastructure improvements in northwest Alabama are designed to attract offshoot industries for the Toyota assembly plant in Tupelo, Miss.

Another potential source of state money for National Alabama is a $900 million federal hurricane fund that isn't approved for northwest Alabama. The Riley Administration is trying to get congressional approval to include northwest Alabama in counties that can legally use GO Zone funds.

GO Zone stands for Gulf Opportunity Zone, but federal funding is available only for 11 southwest Alabama counties that had damage from hurricanes in 2005.

Dana Beyerle can be reached at (334) 264-6605 or dtb123@aol.com.