Riley calls a special session on incentives

BYLINE: KIM CHANDLER News staff writer

MONTGOMERY - Gov. Bob Riley on Friday called a special session beginning Feb. 26 to approve millions in incentives to bring a 2,700-employee steel plant and other industries to Alabama.

Riley said Friday the state needed to act immediately to win thousands of jobs.

''Alabama is pursuing major economic development projects that would create thousands of new jobs all across the state, but if we fail to take action immediately, we run the risk of losing these jobs to other states. I'm not willing to take that chance. No one should be willing to take that chance,'' he said.

Riley will ask lawmakers to approve a constitutional amendment to increase the state's bond-issuing capacity from $350 million to $750 million. Riley spokesman Jeff Emerson said the extra bonding authority will be used to offer incentive packages to 10 companies - three of which will be making decisions soon where to locate their plants.

Emerson said the pressing projects include the 2,700-employee ThyssenKrupp

steel plant, which is considering a location in Mobile County; a plant for the Montgomery area that would employ 500 to 1,000 people; and a plant for northwest Alabama that would employ 1,500.

A constitutional amendment requires approval by the Legislature and by Alabama voters in a statewide referendum.

''Several of the companies we are pursuing have told us they want to begin construction this summer,'' said Neal Wade, head of the Alabama Development Office, the economic development agency. ''Waiting until the fall will probably kill our chances of bringing these jobs here. That's why time is of the essence.''

Democrats pledged support for industrial recruitment, although several disagreed with Riley's plan to call a speedy fiveday special session.

''I have not talked to a single person who does not support this,'' said Senate Majority Leader Zeb Little, D-Cullman. But Little said passing legislation in five days is sometimes difficult with simple bills. ''I haven't seen a complex bill pass in five days. It's a huge gamble.''

Little had earlier suggested the governor avoid the $100,000 or more cost of a special session by waiting until the regular session convenes March 6. For a special session, Little said it would be better to bring lawmakers in early, ''preferably on Monday,'' to give adequate time to pass and study the legislation.

House Speaker Seth Hammett, D-Andalusia, agreed the state needed to move quickly to approve an incentive package ''that will allow our state to compete for these good-paying jobs our people need and deserve.''

Hammett also urged Riley to meet with as many members of the Legislature as possible before the beginning of the special session. ''I think it is critical to have a successful outcome and I pledge support to help make that happen,'' Hammett said.

Any state bond deal also could provide money for incentives for an Isuzu assembly plant that could locate in Birmingham. Isuzu Manufacturing Services of America Inc., a subsidiary of Tokyo-based Isuzu Motors Ltd., recently bought the 300,000-square-foot former Del Monte Corp. distribution center in Pinson Valley for nearly $8 million. Negotiations between local and state officials were said to be continuing.

''That would be a coup for Birmingham'' because of Birmingham's past difficulties in recruiting industries, said David Bronner, chief executive of the Retirement Systems of Alabama.

Riley's session call includes bills to create irrevocable trusts to pay billions in health care costs for retired teachers and state workers. The state government faces an estimated $20 billion bill in coming decades for state retirees' health insurance.

Creating the trusts would reassure bond-rating agencies that Alabama was taking steps to pay its large future health bills, Bronner said.

EMAIL: kchandler@bhamnews.com