Huntsville updates

[HSVTiger]

Missouri Boeing incentives

Boeing could save 20 percent or more of its payroll costs at a new jetliner factory if it accepts Missouri's bid to build the 777X in St. Louis.

Under the plan proposed by Democratic Gov. Jay Nixon, Boeing would benefit from four economic development programs that provide benefits either by allowing employers to keep the money taken from their employees' paychecks for state taxes or by providing a credit based on payroll.



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Union leaders agree to concessions to lure Boeing
Senate committee approves Boeing incentives for debate
The bill written by Nixon's office creates a new economic development designation for an "aerospace project." It must have 2,000 jobs or more within 10 years to receive the benefits that would be allowed under a special umbrella cap of $150 million per year for the four incentive programs.

That would almost double the current combined cap on the four programs, which are Missouri Works; Missouri Business Use Incentives for Large-Scale Development, or BUILD; the Missouri Works Training program; and the Real Property Tax Increment Allocation Redevelopment program.

"These are all existing programs that we have now that we are talking about putting additional authority in," Nixon told reporters after meeting with Senate Republicans yesterday. "So working inside the structure we already have is important."

That message seemed to work with many GOP lawmakers. "I also have a comfort level with these four programs in existence, that we are not reinventing the wheel, that there are taxpayer protections already worked into those programs, and it gave me a heightened sense of comfort," said Sen. Eric Schmitt, R-Glendale, who will sponsor the bill in the Senate.

Each of the programs being used provides refundable tax credits, which means the state will pay the company money if the credits exceed Boeing's tax bill.

Missouri Works, which is currently capped at $106 million annually for all participants, allows companies to keep the money withheld from employees plus other credits for a total of as much as 9 percent of payroll. Missouri Works Training provides a tax credit of as much as 2.5 percent of payroll for payments to train workers at community colleges.

The BUILD program finances construction and equipment for the plant and gives tax credits for repaying the debt. The tax increment program is also based on the cost of completing the factory and allows as much as half of payroll taxes to be directed to paying off development costs.

This article was published in the Tuesday, December 3, 2013 edition of the Columbia Daily Tribune

[stewdog1]

Originally Posted by HSVTiger

There is huge interest in the alnd around this interchange, it will probably develop quickly
you can thank the potential Boeing plant for jump starting this along with the negative reports aldot was getting from Mayor Battle.

see they admit it

Gov. Bentley said the reason the interchange took so long to get going was because historically North Alabama has been "left out" of getting the infrastructure help it needed.

Gov. Bentley said there's not a better group of people to work with than the leadership "in this part of the state" and added there's more infrastructure projects to come.

"State transportation dollars are scarce. We don't have as many as we would like," he said. "But we certainly need to put scarce dollars in the areas of the state that would benefit the most from it and create the most jobs. And I believe this part of the state is an area we need to concentrate on."

Remember, Madison cut the check to the state over a month ago for their part in the intersection. Definitely thank this possible Boeing deal with getting them off their be-hinds.

I find it ridiculous on al.com all the negativity from posters on there surrounding this and the Boeing stuff.

[David1502]

Huntsville Mayor Tommy Battle has proposed a one cent increase in sales tax to pay for Huntsville's portion to get $125 million in matching funds from the State of Alabama for $250 million in road improvements for Huntsville and Madison County. Here is the link for Battle's proposal: http://blog.al.com/breaking/2013/12/...cart_big-photo

The list for road improvements is pretty thorough and quite impressive and includes the following:
1. An additional westbound lane from Shields Rd. to east of Chapman Mountain
2. Additional Overpasses on Memorial Parkway at Byrd Spring Rd., Lilly Flag Rd. and Mastin Lake Rd.
3. Six Lane U.S. 72 from Providence Main to County Line Rd.
4. Complete the next leg of the Northern Bypass form Bob Wade Lane to North Memorial Parkway

Here is the link from al.com http://blog.al.com/breaking/2013/12/..._125m_for.html

What do you all think about the chances of getting the additional sales tax and the road improvements?

[HSVTiger]

Originally Posted by David1502

Huntsville Mayor Tommy Battle has proposed a one cent increase in sales tax to pay for Huntsville's portion to get $125 million in matching funds from the State of Alabama for $250 million in road improvements for Huntsville and Madison County. Here is the link for Battle's proposal: http://blog.al.com/breaking/2013/12/...cart_big-photo

The list for road improvements is pretty thorough and quite impressive and includes the following:
1. An additional westbound lane from Shields Rd. to east of Chapman Mountain
2. Additional Overpasses on Memorial Parkway at Byrd Spring Rd., Lilly Flag Rd. and Mastin Lake Rd.
3. Six Lane U.S. 72 from Providence Main to County Line Rd.
4. Complete the next leg of the Northern Bypass form Bob Wade Lane to North Memorial Parkway

Here is the link from al.com http://blog.al.com/breaking/2013/12/..._125m_for.html

What do you all think about the chances of getting the additional sales tax and the road improvements?

good, but I wonder about the projects that are still delayed and there are many.
Bob Wade interchange needs a total redesign, Moores Mill/Shields overpasses, additional lanes on I-565 etc
The Mayor keeps harping on commute time..thats not the issue..we want Huntsville's infrastructure to enter the 21st century.
Maybe Belks should negotiate with aldot, they are good at getting what they want.

[SpawnOfVulcan]

Judging by the location criteria described in this article... it really seems like Huntsville stands a pretty good chance at landing this. LINK

In the St. Louis Post-Dispatch report, business writer Tim Logan said the ideal site for a new Boeing jetliner plant would be adjacent to a large airport with a 9,000-foot runway that can accommodate both 777X and 747-400 freighter planes.

Logan said the company also wants to be close to a major highway and have access to a "dedicated direct rail spur into the site for parts delivery."

[HSVTiger]

Originally Posted by tascalisa

Judging by the location criteria described in this article... it really seems like Huntsville stands a pretty good chance at landing this. LINK

oh yeah Huntsville's airport is one of those hidden gems, one runway two miles long, room for 3-4 others along with the Intermodal side with daily 747 freighter service. Large airport is not meaning passenger service I don't think but infrastructure and Huntsville has everything they need.

Add Greensboro NC to the list

The city is one of three in North Carolina that Boeing has asked to submit a bid for the new 777X plant, said Mayor Nancy Vaughan. Charlotte is one of the other cities.

Greensboro's presentation is due to Boeing by Monday, Vaughan said.

The 777X is Boeing's new large twin-engine jet that was announced last month. It's expected to begin production in 2017, and the first delivery is expected in 2020.

Boeing has reached out to cities in 12 states for bids on the plant, Vaughan said.

Documents obtained by the Charlotte Observer show Boeing wants land for the plant at little or no cost, as well as tax incentives. It also said it needs a technically skilled workforce.

and in Charlotte
Charlotte has undeveloped land around Charlotte Douglas International Airport and a new rail yard. It's unclear how much the city and the state would be able to offer in tax breaks.
The company already has a plant in North Charleston, S.C., that makes the 787 Dreamliner. North Charleston is one of the locations being considered.
The deadline for bids is next Tuesday.

[HSVTiger]

Huntsville sent man to the moon, I think we can build airplanes..
and you wonder if Boeing would love to set up shop in a state where Airbus is locating? It would create some interesting dynamics for sure.

From al.com
Alabama's chances of landing a Boeing 777X aircraft assembly plant in Huntsville are slim, according to two aerospace industry analysts who are following the high-stakes competition.

The state's key drawback is the lack of experience among its workforce when it comes to building planes, said Scott Hamilton of Leeham Co., a Seattle area-based aerospace consulting firm.

"There's a good defense footprint in Huntsville, but building rockets is very different from building commercial planes," he told al.com. "I wouldn't rule out Alabama but I don't think it's in the top tier of what I would look for."

Hamilton said the decision by Boeing's European rival, Airbus, to build its first U.S. aircraft assembly plant in Mobile is different from the one Boeing will make. Airbus didn't have a U.S. footprint, while Boeing has a number of sites where there is institutional knowledge in the construction or repair of planes.

He cites Boeing's existing production facility in Everett, Wash., as the top contender, despite an ongoing flap with the union there. After that, he ranks sites in California, Texas and Missouri above Alabama.

Richard Aboulafia of The Teal Group in Fairfax, Va., also sees Huntsville as a longshot.

Washington state has big advantages over the other sites, he writes in an analysis of the issue, and the only other site that makes any sense is South Carolina, where Boeing assembles its 787 Dreamliner.

But another analyst gives Alabama more favorable odds.

"In the absence of some blinding flash of reality hitting the Machinists in Seattle, Alabama is close to the top of the list in terms of places Boeing would like to do 777X assembly," Loren Thompson of Lexington Institute, an Arlington, Va.-based research group, said in an interview.


Boeing announced last month that it would look for a new production site for the 777X after the International Association of Machinists in Washington rejected a contract extension that involved large concessions on pensions and wages. It also would have kept production of the plane there.

The company has talked to more than 20 states about incentives related to the set-up of a 777X production line, including Alabama. State officials are working to submit a proposal by Tuesday, as other states are reportedly offering billions to land the project.


Analysts agree that Boeing is sincere about moving production out of Washington, but there's also the possibility that other states' concessions could be used as leverage in further negotiations with the union.

Thompson says Long Beach, Calif., where Boeing builds military planes, would be the ideal location, but Alabama has an advantage over California when it comes to lower labor costs.

He also cites Alabama's low taxes and status a right-to-work state, as well as a bill passed by the Legislature earlier this year that sets a time limit on legal liability for commercial aircraft manufacturers for defects that could give rise to lawsuits.

Supporters of the bill said it is important to help recruit suppliers for Airbus.

Boeing's substantial presence in Huntsville also is an advantage, Thompson added. The company employs more than 2,600 people there, with operations that include missile defense, space launch systems and a design center that focuses on commercial products such as the 737 and 787 airliners.

As for the workforce, Thompson said skills for jobs in auto manufacturing, which has a heavy presence in Alabama, are compatible with building planes.

"Most studies indicate there's a large reservoir of people that could be trained," he said.

But Hamilton, of Leeham Co., said Boeing has a number of locations across the U.S. where it already has a built-in workforce familiar with the construction or repair of planes. He cites Long Beach, as well as San Antonio and St. Louis as examples.

"After that, everybody is a greenfield site with no institutional knowledge of putting together an airplane," he said.

And it's no secret that Boeing has had production delays and other problems with its South Carolina assembly line in North Charleston, which was a greenfield project.

One thing that is clear, Thompson said, is that Boeing must get its costs down.

[HSVTiger]

Stars may move and then may come back as a new team/ownership and a new downtown stadium.
On item that may be an issue with Biloxi would be it's ties to gambling revenue.

The Biloxi City Council tabled its vote Tuesday on a minor league stadium in the city, with city attorney Michael Collins telling the Biloxi Sun-Herald that "additional documentation" was needed before a vote could be held.

Presumably some of that documentation was the assurance the Huntsville Stars will be moving to Biloxi for the 2015 season. They are the team being targeted by a group wanting a Southern League franchise.

The Stars, team officials stress, will be in operation in Huntsville in 2014 no matter the outcome of a sale and city leaders are optimistic that should the Stars be sold, Huntsville would be able to quickly bring in another franchise. Sources throughout the Southern League have said they want Huntsville as a member because of its geography and tradition, recognizing the potential for success.

The Southern League board of directors met in private session Wednesday afternoon, but no announcement was forthcoming regarding a vote to approve the potential sale. The league owners have been asked to abide by a gag order when it pertains to transfers of teams and other moves.

Any sale or transfer of a team must be approved by the other league owners and by Minor League Baseball.

[TimCity2000]

wow, definitely would be a blow to my childhood to see the stars leave

surreal to think that i saw mark mcgwire and jose canseco play in the 80s in HSV.

[Huntsvillenative]

I say let the Stars leave along with their owner and go after the Greenville Braves with a new downtown stadium proposal as the selling point. The Braves have a huge local following here and would be able pack in large crowds every game because the locals will be interested in seeing future Braves. Myself included. One of the reasons the Stars have had low attendance, aside from poor facility, is because nobody around here cares for the Brewers as they do the Braves.

The Huntsville Braves anyone?

Correction. They are the Mississippi Braves now. Located in Pearl, MS.

[HSVTiger]

Originally Posted by TimCity2000

wow, definitely would be a blow to my childhood to see the stars leave

surreal to think that i saw mark mcgwire and jose canseco play in the 80s in HSV.

yep at one time the Stars may have been the hottest minor league team in the country.
The stadium was build right before the current trend of being downtown with amenities and character. It was all about multi-purpose/sterile and acres of parking.
I think it will be a good thing in the long run with hopefully a new team and a downtown stadium complex. Wonder if Mark Cuban likes baseball investing?

[SpawnOfVulcan]

Btw, new negotiations are going on between the workers union and Boeing in Seattle. This isn't entirely surprising. While Huntsville stood a great chance at landing the plant, I don't think I ever truly believed they weren't site searching just force the union back to the table.

[HSVTiger]

Originally Posted by tascalisa

Btw, new negotiations are going on between the workers union and Boeing in Seattle. This isn't entirely surprising. While Huntsville stood a great chance at landing the plant, I don't think I ever truly believed they weren't site searching just force the union back to the table.

even if they stay in Seattle look for Huntsville to benefit. Boeing could still re locate some work like they are doing with the design center.
Of course there are approximately 16 other states/sites that are on the hook as well. Huntsville hasn't lost anything especially if we never had it. If an agreement isn't reached today or at least a vote opportunity then look out.

[OCA REP]

Originally Posted by Huntsvillenative

I say let the Stars leave along with their owner and go after the Greenville Braves with a new downtown stadium proposal as the selling point. The Braves have a huge local following here and would be able pack in large crowds every game because the locals will be interested in seeing future Braves. Myself included. One of the reasons the Stars have had low attendance, aside from poor facility, is because nobody around here cares for the Brewers as they do the Braves.

The Huntsville Braves anyone?

Correction. They are the Mississippi Braves now. Located in Pearl, MS.

Your post makes it apparent why the Stars are looking to exit Huntsville. You dream of a downtown ballpark, but do not support the team enough to realize that they play in the AA Southern League and are regular opponents of the Mississippi Braves. The Braves have an awesome facility in Pearl and would have no desire to relocate to Huntsville, AL. City leadership dropped the ball many years ago by not addressing the aging facility and allowing attendance to decline without putting a plan in place to develop an alternative (hopefully downtown) location.

[Huntsvillenative]

Originally Posted by OCA REP

Your post makes it apparent why the Stars are looking to exit Huntsville. You dream of a downtown ballpark, but do not support the team enough to realize that they play in the AA Southern League and are regular opponents of the Mississippi Braves. The Braves have an awesome facility in Pearl and would have no desire to relocate to Huntsville, AL. City leadership dropped the ball many years ago by not addressing the aging facility and allowing attendance to decline without putting a plan in place to develop an alternative (hopefully downtown) location.

Pearl is like Athens to Huntsville. Very small with a population of 26,000. Huntsville on the other hand is the third largest city in the state with about 300,000 residents within a 20 minute driving range. Of course the owners would be interested IF a new downtown stadium were to be built by the city and featured accessible clubs, restaurants etc. Pearl sits in a very similar surrounding as does Joe Davis Stadium now. Meaning a lot of concrete and no nightlife. Another negative is that Trustmark Park only has 5,500 permanent seats. A new downtown stadium would have at least 7,000 or more. That, alone with easy access to hotels, shopping and nightlife entertainment, would be very intriguing to the Braves AA owners, and to the Atlanta Braves as well by having the team close by in a larger market.

Huntsville could also think big and build an unique mid-size stadium of about 10,000 for triple-A baseball which would draw in much larger support locally. But the cost would double if that were the case. As it is, the city is looking at a 7,000+ seat stadium for around $30 million. That's what I have heard anyway.

[JuanHunt]

The Miss. Braves had a 2013 attendance about 50% larger than the Stars. Maybe there is more to it than just the stadium.

FWIW, the city and the owners of the Coke plant property have reached an impasse and there may not be a deal.

[HSVTiger]

Welcome home Boeing

not 777 plane building related but another step

Boeing plans to establish a $17 million research center in Huntsville that will bring up to 400 engineering-related jobs to the city.
The company is restructuring one of its divisions, Boeing Research and Technology, which now has a limited presence in Huntsville. As a result, the company is shifting work to Alabama from other states.
The project is separate from the 777X aircraft production line that states and cities across the country, including Alabama and Huntsville, are currently aiming to land, according to Greg Canfield, secretary of the Alabama Department of Commerce

[Huntsvillenative]

Originally Posted by JuanHunt

The Miss. Braves had a 2013 attendance about 50% larger than the Stars. Maybe there is more to it than just the stadium.

FWIW, the city and the owners of the Coke plant property have reached an impasse and there may not be a deal.

IF true, then it's Coke playing hard ball trying to get what they can knowing the land is prime real estate. That being said, there are ways for the city to get the land out from under Coke, too.

[JuanHunt]

Originally Posted by Huntsvillenative

IF true, then it's Coke playing hard ball trying to get what they can knowing the land is prime real estate. That being said, there are ways for the city to get the land out from under Coke, too.

The parties agreed on a price, some of the other details were the issue. If the city really wants the land, they just have to write the check.

[Huntsvillenative]

Originally Posted by JuanHunt

The parties agreed on a price, some of the other details were the issue. If the city really wants the land, they just have to write the check.

If it comes down to it the city can file for imminent domain. And take the land with no cost. Not a popular option but this has been done for other stadium developments around the nation.