Incentive package finalized

BYLINE: Laura Hipp lhipp@clarionledger.com

*Plans to lure plant to the Columbus area survive scare at Capitol

Political bickering between Mississippi legislators on Friday almost cost the Columbus area a proposed 500-job diesel engine factory.

A last-minute attempt by the House to fund a burn center angered the Senate, which then ended the special session before a $48.4 million incentive package was finalized.

House members eventually passed Senate Bill 2001 but not before chastising the senators for leaving town.

Gov. Haley Barbour called the session to lure a $300 million powertrain manufacturing and assembly plant to a 394-acre site at the Golden Triangle Regional Airport. A one-day session cost taxpayers about $56,965.

"What matters is the Legislature passed everything needed for this economic development project to come to our state," Barbour said in a statement.

The Mississippi Development Authority and the company will finalize a contract outlining incentives. Company officials did not want their identity disclosed, so the prospect's nickname became "Project Jupiter."

During tense debate in the House, state Rep. Jeff Smith slipped and said the company made Peterbilt trucks while pleading with colleagues to consider the Senate package.

"We need to be more forthcoming, and if they're so fickle they can't let us use their names, I'm sorry," Smith, D-Columbus, told the Ways and Means Committee. "But they will come to our area if we do something today."

Peterbilt's owner, PACCAR Inc., which also makes Kenworth trucks, has searched the Southeast for sites to build a diesel engine factory.

Construction could begin in July on the plant, which would make 9.2-liter and 12.9-liter engines for Peterbilt trucks.

The project is the second major economic development package approved this year. In March, Toyota received a $323.9 million incentive package to bring more than 2,000 jobs to Blue Springs.

PACCAR must create 500 initial full-time jobs with salaries ranging between $36,000 and $40,000 annually. The company's estimated annual payroll would be $18 million, with a minimum $300 million investment in the plant. Production would begin in 2010.

The Four County Electric Power Association will add infrastructure to improve the plant.

Lowndes County will spend up to $15 million to prepare the site for development and add infrastructure. The state will provide $48.4 million for job training, road improvements, site preparation and water service. A payroll tax rebate and exemptions from sales and use taxes also apply.

Within an hour of the session's start, the Senate unanimously passed the package. The breakdown began when Rep. Steve Holland added a $10 million burn center at the University of Mississippi Medical Center into another bill, Senate Bill 2004.

"It's my No. 1 issue," said Holland, D-Plant-ersville, a staunch advocate for a burn treatment center. The state's only burn facility closed in 2005. "We're talking about 10 measly million dollars."

Holland's move angered the Senate, which has not supported a burn center. The proposal also was not included in Barbour's agenda for the session and may not have become law. Governors set the agenda for special sessions. Senators then decided to go home.

"We have accomplished what we came here to do," Lt. Gov. Amy Tuck said. "We have passed the legislation that was in the proclamation issued by the governor."

Smiles from Columbus-area officials quickly vanished as the prospect's consultants warned of a move to Arkansas if lawmakers here could not agree.

"When we start stumbling here, these companies can't wait," said Joe Higgins Jr., CEO of the Columbus Lowndes Development Link. "They've got to have a site in their hands by May 11. They've got to start digging in July because they've got production schedules."

Representatives took the Senate's exit as a sign of disrespect and fumed for a few hours before taking the Senate version of the bill.

"You're going to use this (burn center) bill as a whipping stick to hit my people," Rep. Tyrone Ellis, D-Starkville, said of the Senate. "That's uncalled for. Why would you put all these jobs in jeopardy?"

The package passed the House without objection.

Senate Bill 2004, which included budgeted money for the session, died. However, both chambers have enough money in their budgets to pay for Friday's work.