Arsenal office park bill advances

Senate panel OKs TIF district for$1 billion complex

MONTGOMERY – A bill that would allow Huntsville to form a special tax increment finance district for a 470-acre, $1 billion office park at Redstone Arsenal got a big boost Thursday.

It won unanimous and bipartisan approval by the Senate Finance and Taxation General Fund Committee.

Sen. Tom Butler, D-Madison, the Senate sponsor, said he hoped the bill would be considered by the full Senate next week.

“We’re trying to put it on a fast track because it’s a huge piece of the (BRAC) puzzle,” he said. “I think we’ve educated as many people, particularly on that committee, as possible how important that bill is.”

Butler amended the bill so that the TIF would not extend beyond 35 years. A TIF district allows the city to borrow money for public improvements and repay the debt with property tax revenue gains resulting from the improvements.

In this case, the developer, LW Redstone, has agreed to buy the bonds directly and be repaid as the tax growth happens.

Although BRAC, which will bring an estimated 10,000 government and contractor jobs to Huntsville and North Alabama, will have an economic impact statewide, Butler said Huntsville will bear the brunt of related problems such as the need for improved roads and more classrooms.

The new development would eventually include 4 million square feet of office space and employ about 14,000 people. Butler said it would generate $80 million alone in sales taxes off construction materials.

“We’re behind the curve, and we can’t go fast enough,” he said.

The Madison County House and Senate delegation are fully supportive of the bill.

“All five Madison County senators now are supporting it, including, (Sen. Paul) Sanford (R-Huntsville),” said Butler.

Sanford had declined to sign the bill earlier because he hadn’t read it, but Butler said Sanford told him Wednesday he backs it.