Would TK help?
Published 8:55 pm Wednesday, June 6, 2007
By By Lisa Tindell – news reporter
An estimated $3.9 million could find its way into the pockets of some Escambia County residents if an economic impact report released this week by Auburn University at Montgomery officials holds true.
The Alabama Development Office released the report concerning the ThyssenKrupp Steel and Stainless USA project planned in Mobile County. The $3.7 billion plant will be built in the Mount Vernon community near Mobile.
The final report was made public by the Mobile Chamber of Commerce this week after the Alabama Development Office evaluated and forwarded the report to Mobile officials.
The report reveals the results of a study conducted by Keivan Deravi, an economics professor at AUM. Those results could help determine the monetary contributions several local governments, including the Escambia County Commission, will make to the incentives package used to lure the German steel firm to Alabama.
Escambia County commissioners recently signed a revised statement of intent to become a part of the Lower Alabama Economic Development Cooperative - a group the Mobile County Commission hopes will step up and take a portion of the $83.5 million commitment it has made in the deal with ThyssenKrupp.
In the Deravi report, estimates show some 383 employees from Escambia County can count on a job during the construction phase, while 112 will be able to find permanent jobs when operations begin in 2010. Earning estimates for those Escambia County employees show a total of $15.31 million during construction with $3.91 million when operations begin.
Escambia County residents employed by ThyssenKrupp won't be the only people expected to see extra dollars in their pockets during construction and operation. The Deravi reports estimates some $6.74 million will be spent in the retail market during the construction phase with an additional $1.59 million in retail sales after operations begin.
The Mobile County Commission has requested an additional study be conducted since officials there believe the estimates given in the Deravi report may be somewhat conservative. A second study will be conducted by Dr. Semoon Chang, professor of economics and director for the Center for Business and Economic Research at the University of South Alabama. That study is expected to be completed and released before the end of June according to officials at the Mobile Chamber of Commerce.