City, county to vote on $ 3 million deal on Monday to improve road access to Austal USA
MOBILE, Ala. (WKRG) – The Mobile County Commission will vote on Monday, October 25 on an agreement between the city of Mobile, Mobile County and Austal USA to provide $ 3 million to the shipping company to improve the access to its facilities. .
The project agreement calls for the city of Mobile and the county of Mobile to each contribute $ 1.5 million. Austal USA will be responsible for all costs exceeding this amount. The improvements include the creation of access roads and turning lanes at certain intersections near the facility. The proposed improvements will also benefit the flow of traffic to the nearby AIDT maritime training center.
Mobile County says the project will advance economic development and increase employment. “The increase in property values, increased tax revenues, additional economic activity, the creation of new jobs and the other benefits described here will directly benefit the county and serve a valid and sufficient public purpose,” says the county public notice.
Austal USA develops, builds and equips a new steel hull shipbuilding operation. According to the agreement, Austal USA is expected to employ at least 3,300 full-time employees, earning an average annual salary of at least approximately $ 57,000, excluding fringe benefits, with total capital investment in development, the modernization and equipment of the facility estimated to be approximately $ 100,000,000.
Read the full legal notice from the Mobile County Commission public meeting below:
LEGAL NOTICE OF THE PUBLIC ASSEMBLY OF THE MOBILE COUNTY COMMISSION
Notice is hereby given that the County Commission (the “County Commission”) for Mobile County, Alabama (the “County”) will meet in open session at 10:00 am on Monday, October 25, 2021, at Mobile Government Plaza located at 205 Government Street, Mobile, Alabama for the consideration of any business transaction that may be duly submitted to the County Commission; these matters include the authorization of the County Commission pursuant to Amendment No. 772 of the Constitution of Alabama of 1901, as amended, of a resolution (the “Resolution”) authorizing the execution and delivery of a County Project Agreement (the “Project Agreement”) to be entered into by and between the County, City of Mobile, Alabama (the “City”) and Austal USA, LLC (the “Company”) , as described more particularly below. The project agreement will be signed and delivered by the company to the county and city. The Company develops, constructs and equips a new steel-hulled vessel construction operation (the “Facility”) in Mobile County. As part of the development of the Facility, it is expected that the Company (or its affiliates) will employ at least three thousand three hundred (3,300) full-time employees, earning an average annual salary of at least approximately fifty- seven Thousand dollars ($ 57,000.00), excluding fringe benefits, with a total capital investment in the development, modernization and equipment of the facility estimated at approximately one hundred million dollars (100,000,000 .00) (the “Project”) on time and subject to the recovery of the Company’s payment obligations provided for in the Project Agreement. To make the project site suitable for the project and the society, some road and access improvements are needed, including the construction of access roads and the improvement of intersections to allow for turns and some other access improvements. (the “road and access improvements”), part of which may be reserved for public use upon approval and acceptance by the City. The county has determined that the road and access improvements will provide valuable public infrastructure when complete and access to both the facility and the adjacent AIDT Marine Training Center. The Company will be a direct beneficiary of the Project Agreement and of the Roads and Access Improvements. Pursuant to Amendment No. 772 to the Alabama Constitution of 1901, as amended, and the Project Agreement, for the purposes of County Economic Development, the County will reimburse the Company fifty percent (50 %) of the total cost of the road and access improvements, up to one million five hundred thousand US dollars ($ 1,500,000.00), benefiting the company in return for the development of the project by the company, subject to compliance by the company with certain commitments as described in the project agreement. The County will make these payments to the Company in three (3) annual installments of up to five hundred thousand US dollars ($ 500,000.00) per payment. The first payment will be made by the County within sixty (60) days of the Company’s certification of the completion of the road and access improvements and receipt by the Company or its general contractor of documentation acceptable to the Company. county and city documenting the total cost of road and access improvements. The County will pay up to two (2) additional annual installments to the Company on the next two (2) anniversaries of the initial payment date. As described in the project agreement, the City will also reimburse the Company fifty percent (50%) of the total cost of the road and access improvements, up to one million five hundred thousand US dollars (1,500,000 , $ 00). The Company will be solely responsible for all expenses associated with road and access improvements exceeding $ 3,000,000.00. The Project Agreement will be issued and issued by the county in accordance with Amendment # 772 to the Alabama Constitution of 1901, as amended. Amounts payable by the county under the project agreement are payable out of all county general revenues legally available for this purpose. The project agreement will enter into force on the date indicated in the preamble of the project agreement. The County seeks, by fulfilling its obligations under the Project Agreement, to advance the economic development of the County; to increase employment in the county, and to promote and develop for the public good and welfare commerce, commerce, industry and employment opportunities in the county; and promote the convenience, order, prosperity and well-being of its citizens. The increase in property values, increased tax revenues, additional economic activity, the creation of new jobs and the other benefits described here will directly benefit the county and serve a valid and sufficient public purpose. The County proposes to spend public funds for the benefit of the Company. The county commission expects to determine at its public meeting, or any continuation thereof, that the expenditure of funds in connection with the transaction described above will serve a valid and sufficient public purpose, notwithstanding any benefit. accessory due to the company or to any other private entity or entities. All interested persons may review and revise the Project Agreement and all relevant documents under which expenses are to be issued, and make copies thereof at their own expense, at the offices of the County Mobile County Administrator located on the Eighth Floor, South Tower, 205 Government Street, Mobile, Alabama, during regular business hours, before and after the scheduled Monday, October 25, 2021 meeting of the Mobile County Commission mentioned here. PRESS REGISTER 10 October 2021
Mobile County Commission