HUNTSVILLE, Ala. - The Toyota-Mazda plant deal comes with an expected $1.6 billion investment by the automakers, but it also includes incentives by the state and local governments to the companies.
Alabama beat out multiple states to win the deal and the promise of 4,000 jobs. The state has announced it has committed significant resources to the project, including $90 million in tax credits over 10 years, $210 million in investment credit, $25 million in abated sales taxes and $14 million in property tax abatements over 20 years.
The state has also committed up to $20 million in training and recruiting services, along with a training center.
That's $359 million in state incentives right there.
The City of Huntsville is among the other governments making commitments. We`re still pursuing details, which will be spelled out in a development agreement the city council will vote on Thursday.
"There will be considerable incentives involved from the city of Huntsville, as well as the other governmental entities, involved," explained Huntsville City Attorney Trey Riley. "But in any endeavor like this, the equation that comes to mind is -- what will the citizens receive?"
Huntsville officials said Thursday they were not prepared to release how much the city has committed to spending to make the deal happen until the Huntsville City Council meeting Thursday. They said the incentive figure of $48 million, cited by a city council member Wednesday, was not the correct figure.
Huntsville City Councilman Jennie Robinson said the project includes the 1,200 acre TVA Mega Site in Limestone County, complete with utilities, but the city had to add land to the deal. "Toyota required some additional acreage, so the city has been acquiring that acreage for the project," said Robinson. "The city will then provide similarly the sewer, the roads, the utilities, all the other infrastructure to make it possible to make the plant go up."
Robinson said what the city will pay out in incentives will be paid make in multiple ways.
"When you look at (this) ... investment compared to $1.6 billion investment that Toyota's making and then you look at what we will recoup in property tax and sales tax revenue from all those folks who come with those 4,000 jobs, plus the jobs that will follow in the wake of those 4,000 jobs."
The Huntsville City Council will take up the detailed development agreement with Toyota and Mazda at its regular meeting Thursday night.
Updated at 12:33 p.m. to reflect City of Huntsville's comment that the $48 million incentive figure is incorrect. Officials declined to provide the correct figure.