City, county to vote Monday on $3 million agreement to improve road access to Austal USA

Mobile County
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MOBILE, Ala. (WKRG) — The Mobile County Commission will vote on Monday, Oct. 25, on an agreement among the City of Mobile, Mobile County, and Austal USA to provide $3 million to the shipping company to improve access to its facility.

The project agreement calls for the City of Mobile and Mobile County to each contribute $1.5 million. Austal USA will be responsible for any costs that exceed that amount. The improvements include creating access roads and turn lanes at certain intersections near the facility. The proposed improvements will also benefit traffic flow to the nearby AIDT Maritime Training Center.

Mobile County says the project will advance economic development and increase employment. “The increased property values, increased tax revenues, additional economic activity, creation of new jobs, and the other benefits described herein will directly benefit the county and serve a valid and sufficient public purpose,” the county’s public notice states.

Austal USA is developing, constructing, and equipping a new steel-hull vessel construction operation. According to the agreement, Austal USA is expected to employ at least 3,300 full-time employees, earning an average annual wage of at least about $57,000, exclusive of fringe benefits, with a total capital investment in developing, modernizing, and equipping the facility estimated to be about $100,000,000.

Read the full legal notice of the public meeting from the Mobile County Commission below:

LEGAL NOTICE OF PUBLIC MEETING OF THE MOBILE COUNTY COMMISSION

Notice is hereby given that the County Commission (the “County Commission”) of Mobile County, Alabama (the “County”) will meet in public session at 10:00 a.m. on Monday, October 25, 2021, at Mobile Government Plaza located at 205 Government Street, Mobile, Alabama for the purpose of consideration of the transaction of any business that may properly come before the County Commission; such business to include the authorization by 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 Project Agreement by the County (the “Project Agreement”) to be entered by and between the County, the City of Mobile, Alabama (the “City”), and Austal USA, LLC (the “Company”), as more particularly described hereinbelow. The Project Agreement will be executed and delivered by the Company to the County and the City. The Company is developing, constructing, and equipping a new steel-hull 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 wage of at least approximately Fifty-Seven Thousand Dollars ($57,000.00), exclusive of fringe benefits, with a total capital investment in developing, modernizing, and equipping the Facility estimated to be approximately One Hundred Million Dollars ($100,000,000.00) (the “Project”) within the timelines and subject to the recapture payment obligations of the Company provided in the Project Agreement. To make the Project site suitable for the Project and the Company, certain road and access improvements are required, which include the construction of access roads and improving intersections to accommodate turning movement and certain other access improvements (the “Road and Access Improvements”), a portion of which may be dedicated 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 upon completion and access to both the Facility and the adjacent AIDT Maritime Training Center. The Company will be a direct beneficiary of the Project Agreement and the Road and Access Improvements. Pursuant to Amendment No. 772 of the Constitution of Alabama of 1901, as amended, and the Project Agreement, for the purpose of economic development of the County, the County will reimburse the Company for 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), benefitting the Company in consideration of the Company’s development of the Project, subject to the fulfillment by Company of certain commitments as described in the Project Agreement. The County will make such payments to the Company in up to three (3) annual installment payments of Five Hundred Thousand US Dollars ($500,000.00) per payment. The first installment payment will be made by the County within sixty (60) days following certification by the Company of completion of the Road and Access Improvements and receipt from the Company or its general contractor of documentation acceptable to the County and the City documenting the Total Cost of the Road and Access Improvements. The County will make up to two (2) additional annual installment payments to the Company on the following two (2) anniversaries of the initial installment payment date. As described in the Project Agreement, the City will also reimburse the Company for 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 shall be solely responsible for all expenditures associated with the Road and Access Improvements exceeding $3,000,000.00. The Project Agreement will be issued and delivered by the County pursuant to Amendment No. 772 to the Constitution of Alabama of 1901, as amended. The amounts payable by the County under the Project Agreement are payable from all general revenues of the County lawfully available for such purpose. The Project Agreement will be effective as of the date stated in the preamble of the Project Agreement. The County seeks to achieve, by undertaking its obligations pursuant to 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 trade, commerce, industry, and employment opportunities in the County; and to promote the convenience, order, prosperity, and welfare of its citizens. The increased property values, increased tax revenues, additional economic activity, creation of new jobs, and the other benefits described herein will directly benefit the County and serve a valid and sufficient public purpose. The County proposes to expend public funds for the benefit of the Company. The County Commission expects to determine at its public meeting, or any continuance thereof, that the expenditure of funds in connection with the transaction described above will serve a valid and sufficient public purpose, notwithstanding any incidental benefit accruing to the Company or any other private entity or entities. All interested persons may examine and review the Project Agreement and all relevant documents pursuant to which the expenditures are to be issued, and make copies thereof at personal expense, at the offices of the Mobile County Administrator of the County located on Eighth Floor, South Tower, 205 Government Street, Mobile, Alabama, during normal business hours, before and after the scheduled meeting of Monday, October 25, 2021, of the Mobile County Commission referenced herein. PRESS REGISTER October 10, 2021

Mobile County Commission

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