Etowah Co. approves major tax incentives for 'Project Scout'; Gadsden one of two finalists

The Etowah County Commission on Tuesday approved major tax incentives for “Project Scout” — a subject that’s been danced around in governmental meetings for the last few weeks.

The details remain closely guarded secrets as those directly involved are subject to non-disclosure agreements. However, the bits of information that have circulated, paired with the scope of the incentives granted by the county and recent action by the City of Gadsden, are a sign that this is something massive.

Here are the details shared by city and county officials, and confirmed by David Hooks, director of the Gadsden-Etowah Industrial Development Authority, which is spearheading the project:

• Gadsden is one of the final two candidates for “Project Scout” out of more than 100 sites in the Southeast that were considered.

• “Project Scout” would involve a steel fabrication facility to be located on property at the Northeast Alabama Regional Airport.

• It would involve a capital investment of more than $250 million, and bring more than 300 jobs to the area.

• A decision is expected sometime within the next couple of weeks.

The County Commission on Tuesday voted to exempt the company, should it locate here, from ad valorem taxes for 20 years, and from sales and use taxes during the construction of the facility.

Commission President Craig Inzer Jr. said it was a case of “making our proposal look the best it can,” noting that the IDA can offer a 10-year abatement up front, but the company is seeking 20 years from the city, county and state, and commission approval is required for the county to go any higher than 10 years.

The Gadsden City Council subsequently held the first reading on the acquisition of property at the airport for “Project Scout.” It will be considered at the next meeting on April 4. The council won’t meet next week because members and other city officials will be in Washington, D.C, for the National League of Municipalities Conference.

The council last month authorized Mayor Craig Ford to negotiate the purchase of 150 acres at the airport from the Gadsden Airport Authority for the project. Ford indicated the city would follow protocols recommended by the Federal Aviation Administration throughout the process.

“’Project Scout’ is a big deal, and we hope it comes in,” Commissioner Jamie Grant said. “This is the first thing that’s being done with the IDA, Etowah County and Gadsden all working together, pulling in the same direction.”

The commission last November voted to unite with the IDA on local industrial recruitment efforts, providing the authority with $150,000 in annual funding and gaining two positions on its board.

Inzer noted that he and Shane Ellison, the county’s chief administrative officer, actually took two site selectors for “Project Scout” to the county’s NEAR megasite, even though they knew the project wouldn’t be a good fit for that property because of its size and location.

“We went through the project and who we are, went through the demographics and what the city and county are all about,” he said. “We took them to dinner and found out what they wanted from a site, how many places they were looking at. We rode them around town the next day and went to the megasite.”

Inzer said because of the county’s relationship with the IDA, “We were able to say, ‘Hey, we know this site isn’t going to work for you, but we have this site over there and this one over here.’ We kept them in Etowah County.”

He said having the megasite probably ensured Gadsden had a “seat at the table” in pursuing the project, and that while he doesn’t want to lose sight of what the county is trying to do with that property, “If the IDA and the city place them inside this county, it’s going to help everyone.”

This article originally appeared on The Gadsden Times: Etowah County sweetens incentives package for 'Project Scout'