Big River Steel closes on financing | Arkansas Blog

Tuesday, July 1, 2014

Big River Steel closes on financing

Posted By on Tue, Jul 1, 2014 at 10:44 AM

Big River Steel LLC announced today that it had closed on the financing necessary to build a $1.3 billion steel mill in Mississippi County that supposedly will employ 500.

Construction is expected to take two years.

The mill was opposed by competitor Nucor, which Big River CEO John Correnti helped establish. Nucor particularly objected to the rich government help Big River is getting — millions in state aid, tens of millions in venture capital from the Arkansas Teacher Retirement System, $125 million in low-interest state lending, hugepotential  tax credits for the Koch brothers, who are equity investors.

None dare call this socialism, though a taxpayer-financed agency (Teacher Retirement) has a pretty big hunk of the ownership. Just remember that when businessmen talk about getting government out of their business they don't mean government money. And when they decry welfare programs, they don't mean corporate welfare programs.

UPDATE: The AEDC helpfully put together for me the precise list of state contributions. For the record, it follows on the jump:


BIG RIVER STEEL – Amendment 82

Authorized state to issue up to $125 million 20 year general obligation bonds

· $50 million loan to Big River Steel

· $50 million grant for site preparation

· $20 million grant for subsurface stabilization – pilings

· $5 million bond issuance cost

BIG RIVER STEEL STATE INCENTIVES in Addition to Amendment 82

· Tax Back - provides sales tax refunds on building materials, taxable machinery and equipment associated with the project.

· Advantage Arkansas – 4% income tax credit based on new payroll for new jobs for five years.

· Training Funds — $10 million ($5 million Governor’s Quick Action Closing Fund, and $5 million Department of Workforce Services Trust Fund)

· Recycling Equipment Tax Credit — income tax credit equal to 30 percent of eligible recycling equipment costs. These tax credits will carry forward for 14 years.

· Sales Tax Exemption on Utilities –provides full exemption of sales tax associated with the sale of natural gas and electricity.

· Arkansas Development Finance Authority (ADFA) agreed to make $5 million in bridge-gap funding available to Big River Steel. The $5 million assures the $14 million in local incentives (see below) will be immediately available. Mississippi County/Osceola has more than $9 million in the bank for Big River Steel and the remaining $5 million is to be collected by the end of 2014 via a half-cent sales tax for economic development. ADFA’s $5 million simply makes the full $14 million available today.



LOCAL INCENTIVES

· $12 million from Mississippi County and $2 million from the City of Osceola.


ARKANSAS TEACHER RETIREMENT SYSTEM

· Trustees of the Arkansas Teacher Retirement System (ARTRS) have approved investment of up to $125 million in system funds in Big River Steel (ARTRS originally announced a total investment of $60 million but recently authorized an additional $65 million investment).

Tags: ,

From the ArkTimes store

Favorite

Comments

Showing 1-1 of 1

Add a comment

 
Subscribe to this thread:
Showing 1-1 of 1

Add a comment

More by Max Brantley

  • Anybody around?

    The Thanksgiving open line.
    • Nov 23, 2017
  • Turkeys rescued in Yellville enjoy their Thanksgiving

    Farm Sanctuary, an animal protection organization, sends word that four turkeys rescued from the Yellville Turkey Trot after the annual drops from buildings and an airplane will enjoy Thanksgiving in friendlier places
    • Nov 23, 2017
  • The New Orleans charter school 'miracle'? It's a ruse

    The New Orleans Tribune has a devastating piece of editorial commentary, based on local reporting and test scores, that lays bare the depiction of the charterization of New Orleans public schools 12 years ago as a miracle of the "reform" movement.
    • Nov 23, 2017
  • More »

Readers also liked…

  • Judge anticipates punishment of lawyers in Fort Smith class action case

    Federal Judge P.K. Holmes of Fort Smith issued a 32-page ruling yesterday indicating he contemplates punishment of 16 lawyers who moved a class action lawsuit against an insurance company out of his court to a state court in Polk County after a settlement had been worked out.
    • Apr 15, 2016
  • Women's March planned in Arkansas to mark Trump inauguration

    Speaking of Donald Trump and in answer to a reader's question: There will be a women's march in Arkansas on Jan. 21, the day after inauguration, as well as the national march planned in Washington.
    • Dec 30, 2016
  • IHOP coming down, but .....

    I always scan the Little Rock City Board for items of interest this week and this one caught my eye: A zoning measure required by a proposal to tear down the IHOP at Markham and University.
    • Apr 30, 2016

Most Recent Comments

  • Re: Anybody around?

    • My FB post earlier today: My most memorable Thanksgiving was in 2001, two months after…

    • on November 23, 2017
  • Re: Anybody around?

    • Just in from putting up the Christmas lights. Now to check on the turkey breast…

    • on November 23, 2017
  • Re: Anybody around?

    • Tip Jar

    • on November 23, 2017

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation