Subject: [NEXTEL-1] Colbert commits to Nextel

From: Marcel <[email-masked]>
Date: Tue, 31 Dec 2002 14:27:00 -0500

Colbert commits to Nextel

By Robert Palmer
Staff Writer
December 31. 2002 12:00AM

 The Colbert County Commission closed ranks with other Shoals governments Monday night,
committing $250,000 to lure a Nextel call center and 500 jobs.

In a three-minute called meeting, the commission voted to draw money from an existing
general obligation bond and transfer it to the Shoals Economic Development Authority to be
pooled with other money to create a $2 million incentive package.

If Nextel agrees to use the old Wal-Mart building in Southgate Mall for the center, the
incentive will be used to buy computer and telecommunications equipment for the inbound
call center.

"I think this will put a lot of textile workers back to work," said Commissioner Troy
Woodis, referring to Shoals workers who lost their jobs when clothing plants closed and
moved to Central America.

Colbert is pooling money with Lauderdale County, Florence, Muscle Shoals, Tuscumbia and
Sheffield to attract Nextel, which also is reportedly considering Shreveport, La., for the
call center.

However, there are a number of catches for Nextel to get the money.

To receive the first $1 million, Nextel must sign a commitment to open the center and sign
a minimum 15-year lease with Aronov Reality, which owns the building. Ninety days after
the agreement is signed, Nextel would get the money.

Secondly, Nextel must reach and maintain full employment for 12 months before the second
$1 million is paid.

The equipment purchased with $1 million of the incentive would be mortgaged as security
against the investment of the local governments. The company would be required to repay
the money on a prorated basis if the employment level drops below 400 for any 60-day
period.

Other local governments are expected to include the same provisions in their agreements.

All local governments except Sheffield have either voted to pay the conditional incentive,
or have made verbal commitments. Sheffield's council could meet later this week.

Local officials are expected to meet with Nextel on Friday to discuss the project. The
company wants to know by Friday whether the incentive will be made available.

The local contributions to the incentive were divided with Muscle Shoals paying $1 million
because it will receive the greatest direct benefit. Colbert, Lauderdale and Florence will
pay $250,000 each, and Tuscumbia and Sheffield will pay $125,000 each.

Nextel will not receive sales or property tax abatements if the inventive package is
accepted.

Robert Palmer can be reached at 740-5734 or [email-masked].

http://www.timesdaily.com/apps/pbcs.dll/article?Site=FT&Date=20021231&Category=NEWS&ArtNo=212310323&Ref=AR&Profile=1011

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