City Council – Highlights from the January 11, 2018 Meeting
Published on January 12, 2018
Toyota-Mazda Development Agreement
Council voted unanimously to approve a Development Agreement with the Industrial Development Board and Toyota Motor North America that is expected to provide a $5.6 billion return on investment in the next 20 years. In turn the City will offer the companies incentives and abatements valued at $320 million. The global automotive giants announced Jan. 10, they will invest $1.6 billion into a joint-venture automotive manufacturing plant on the TVA megasite in west Huntsville.
Mayor Tommy Battle outlined details of the agreement, called Project New World, to include about $80 million in hard costs for the City. This will be used, in part, to acquire land and build a rail spur to connect to Norfolk Southern. $107 million will be spent on infrastructure improvements (roads/sewer) that were already budgeted in the 10-year capital plan. These projects will now be accelerated to meet Toyota-Mazda’s timeline for opening in 2021. The bulk of the remaining costs are considered “indirect” and include waiving fees and permits, inspections support, and non-educational tax abatements.
TIF 7 Public Hearing
Council held a public hearing on a proposed ordinance to create a new Tax Increment Financing District in west Huntsville. The TIF 7 district would encompass about 5,500 acres on property that includes the TVA megasite, future home of Toyota-Mazda’s $1.6 billion automotive manufacturing plant. Urban Development Director Shane Davis said TIF 7 will allow the City to borrow up to $151 million within the next five years to fund infrastructure improvements in support of new industry. The property currently yields about $30,600 in annual taxes, and these collections will not be captured by the TIF district. Revenues generated above that amount, as a result of new investment and development within the district, are estimated to be in excess of $20 million per year and will be used to pay off debt.
Infrastructure projects slated for TIF 7 include:
- Extension of Greenbrier Parkway to I-65 (five-lane divided highway) $46 million
- Old Highway 20 improvements $28 million
- Sewer $ 7 million
- Industrial property acquisitions $68 million
Davis told Council the goal is to implement public investment projects in an area of Huntsville that would otherwise struggle to provide economic growth.
Council set a date for a special session on Wednesday, Jan. 17, at 6 p.m. to consider the TIF 7 proposal.
Departments
Authorized Public Works to hire Reed Contracting to repave and improve municipal streets. Contract amount is $1,881,793.85.
Approved a $20,000 contract with Firefly Restoration, LLC for the restoration and rebuild of the City’s 1927 Ahrens-Fox Fire Truck.
Two public hearings were set for Feb. 22 at 6 p.m. to consider a zoning request for 84.65 acres of newly annexed property lying on the north side of Bibb Garrett Road and on the east side of Interstate 65 to Planned Industrial District. Council will also hear public comments on an amendment to the zoning ordinance to update existing Highway Business C-4 District language.
Appointed two part-time municipal court judges to serve as substitutes: Patrick Lamar, and Marcia St.Louis
Upcoming
City Council Special Session, Wednesday, Jan. 17, at 6 p.m.
City Council Regular Meeting, Thursday, Feb. 8, at 6 p.m.
For more information, including hyperlinked contracts, visit Council Agendas and Minutes or view video recordings of past Council Meetings in the HSV TV video library.
