Mobile County Signs Incentives as ?Great Value?

Posted on: Jul 12th, 2012 | News and Announcements

The Mobile County Commission today voted on and signed an incentive package for Airbus worth $14.5 million, exactly the same that it had set aside for the aerial refueling tanker project proposed by Airbus in 2005. ?We have cultivated our relationship with Airbus over many years, and we are finding the end result will be even better for us than expected: Airbus will be assembling four planes a month versus 1 ½ for the tanker,? noted Mobile County Commission President Connie Hudson. The package includes $10 million in cash, with payments of $2 million spread out over five years. Also included is a commitment of $1.25 million for soil remediation, a maximum of $1 million for road and drainage work, and payments of $150,000 for 15 years to the Mobile Airport Authority starting in 2016. The Airport Authority payments provides support for use of one of its warehouses by Airbus, which otherwise would bring lease fees to the agency. ?I like that we have a five-year, pay-as-you-go formula for our cash incentive, so we?ll see our investment start paying for itself in economic growth before the total outlay is made,? said Mobile County Commissioner Mike Dean. County Commissioner Merceria Ludgood noted that a huge complement of suppliers to Airbus registered their interest in moving to the Mobile area. ?There?s an economic incentive to move near to your customer,? Ludgood noted. ?It?s a business plan that appealed to Airbus and European suppliers know that it makes good business sense.? Airbus suppliers from all over the world attended numerous meetings with local officials during this week?s airshow in Farnborough, London. ?There seemed to be no limit to the number of suppliers,? Hudson said. ?They covered all aspects, from windshields to wing flaps, to landing gears and more. Airbus? arrival is a fabulous opportunity for all of us.? ?It?s a great value that will pay for itself even over the short term, and certainly over the long term and perhaps for generations,? Ludgood noted. ?I am hoping that local vendors will grab the opportunity as well,? Dean said. ?We have a contractual language that gives our locals a hand-up in getting business if they can qualify and be competitive.?