Go Zone designation not yet set for Colbert

Alabama officials are trying to beat the calendar in submitting proper documents to include Colbert County as a hurricane damaged area in hopes of securing cheaper financing for a Canadian rail car plant building in the Shoals.

Alabama is trying to qualify Colbert County for federal Go Zone Opportunity funds, which were authorized in the wake of the hurricanes that hit the Gulf Coast in 2005.

"I talked to (U.S.) Congressman (Bud) Cramer and he's doing everything he can to get the designation done before the end of the year," Gov. Bob Riley said.

Cramer, a Democrat from Huntsville, is the federal House of Representatives member for Colbert County.

Riley has set aside $300 million for the National Alabama railcar plant, which is being built in the in Barton Riverfront Industrial Park.

Part of the state's financial commitment, as well as the amount local taxpayers are putting up, could be significantly reduced if Colbert qualifies for a portion of nearly $2.1 billion that has been authorized for Alabama's hurricane damaged areas of southwest and west Alabama. Hurricane Katrina caused dramatic damage in Alabama, Mississippi and Louisiana, and the federal money is designated for companies that are opening and creating jobs in the affected areas.

Colbert County is not currently eligible for the money, but Riley reasons that since Mississippi counties contiguous to Colbert County are designated Go Zone areas then Colbert County should be, too.

"It's very important to all our municipalities in the state and to (National Alabama executive Gregory) Aziz," Riley said.

Aziz is chairman and chief executive officer of National Steel Car Ltd., of Canada, the parent company of National Alabama Corp.

Aziz and Riley announced July 18 that Colbert County had been chosen for a $350 million rail car manufacturing plant that could employ 1,800.

If Go Zone financing becomes available for National Alabama, local and state governments won't have to come up with about $14 million to $25 million to cover certain costs outlined in the contract that brought the company to the Shoals. Instead, the federal money will go directly to the company to help it begin operations.

"(Cramer) has indicated to me that he has gotten support from his colleagues ... we're trying to find a vehicle to attach this to," Riley said.

A spokesman for Cramer, Adam Muhlendorf, couldn't be reached for comment.

The deadline to notify the appropriating agency that Go Zone funds will not be used for the project is Jan. 31, said Marc Green, director of investments for the Retirement Systems of Alabama.

"They should know by the end of the calendar year 2007," Green said of attempts to authorize funding.

Go Zones funds are cheaper financing because of tax implications.

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