By BRIAN LAWSON
Times Business Writer brianl@htimes.com

The Base Realignment and Closure Commission recommendation to move two major U.S. Army Commands to Huntsville from Virginia is expected to touch most aspects of life in Madison County as it expands the area's business profile.

The move is expected to begin in 2007 and continue until 2011.

Nearly 5,000 civilian and military jobs are expected to be created in Huntsville directly through the BRAC changes, and a large number of defense contractor jobs are likely to follow that movement.

"There is tremendous interest in the community right now from businesses that have a presence here and are looking to expand and from those who don't," said Mike Ward, vice president of governmental affairs for the Huntsville-Madison County Chamber of Commerce. "We are having a lot of meetings with people planning to grow their presence here or open an office."

Ward said it is difficult at the end of 2005 to quantify the size of the relocation, but he said the BRAC results are a "very big deal."

With that many new jobs, economic activity will reverberate, with new consumers, employers and business opportunities.

Joe Ritch, who helped lead Huntsville's BRAC efforts, said some of the positions filled in Virginia may come open as families decide not to relocate to this area. Ritch said that could mean job opportunities for current area residents and may lead to more hiring by local companies.

Ward said the move to Huntsville of the Army's Materiel Command will mean Huntsville will be home to one of the Army's few four-star generals. That, in turn, means top executives from major aerospace and defense companies will be regular visitors to Huntsville, which will raise the community's profile.

The Materiel Command is also the Army's purchasing arm, so anybody who is interested in doing business with the Army is likely to develop some connection to Huntsville.

The U.S. Army Security Assistance Command, which oversees and manages foreign military sales, will also relocate to Huntsville. Ward said that will mean another increase in visitors to Huntsville and another level of international exposure for the community.

The jobs that are moving here are also good-paying positions, Ward said, better than the current average income. Madison County's mean income is roughly $40,000, according to the U.S. Bureau of Labor Statistics.

The workers will bring well-paid spouses as well. Many of those people will need to find work, which can serve as a stimulus for business growth, startups and fresh ideas.

Huntsville's more than 60 federal offices are also likely to see gains through the new arrivals.

2. New biotech oasis

Biotechnology pioneer Jim Hudson supplied the vision, Gov. Bob Riley made the announcement and in August, Huntsville learned that it would be the home of a world-class $130 million biotechnology center.

Hudson, who also founded and led Research Genetics here for many years, said the "Hudson-Alpha Institute for Biotechnology" in Cummings Research Park will combine non-profit research on a campus-like environment and offer space for biotechnology companies to base operations and develop products.

The effort includes a $50 million commitment from the state of Alabama and $80 million from private donors, who have asked not to be identified.

The institute is currently searching for a director and is scheduled to break ground in mid-January. It is expected to open in mid-2007.

Hudson called the project the most exciting thing he's ever been involved with, and Riley said the institute will help make Alabama a world leader in biotechnology.

It will house eight research teams and begin with between 500 and 600 employees with a $37 million payroll by 2008.

The institute is expected to create some 900 direct jobs. Over 10 years, Hudson expects the institute and adjacent facilities to employ 1,600 people with an $83 million payroll.

Adtran changes, gas prices lead rest of top stories

Huntsville Times
From staff reports

BRAC's expected economic impact on the area topped the list of the top local business stories in 2005, as voted on by the Times business staff. The second-biggest story of last year was the announcement of the $130 million Hudson-Alpha Institute for Biotechnology to be built in Cummings Research Park.

Here's a look at the rest of the top 10:

3. Adtran CEO Mark Smith retires

Adtran co-founder, chairman and longtime CEO Mark Smith announced in July he would retire on his 65th birthday, Sept. 10.

Smith was succeeded in Adtran's top job by Tom Stanton, an Adtran senior vice president.

Howard Thrailkill, Adtran's longtime president and chief operating officer, also retired the same day. Danny Windham, 45, senior vice president and director of Adtran's enterprise networks division, succeeded Thrailkill as chief operating officer.

Smith served as Adtran's CEO for 19 years after co-founding the telecommunications products company in 1986. He will remain the company's chairman.

Adtran has grown to a company with annual revenues of more than $400 million. Adtran employs about 1,600 people and has a market cap of $2.35 billion.

Smith was among the first people to work for Olin King at the company that became SCI Systems. He later founded Universal Data Systems, which he sold to Motorola.

Smith was inducted into the Alabama Business Hall of Fame in October. He is also a member of the Alabama Engineering Hall of Fame and the first Lifetime Achievement Award winner by the Alabama Information Technology Association.

4. Gas prices jump over $3 a gallon

With oil prices climbing through the summer, gas prices had started to rise before Hurricane Katrina, but the devastating storm's effect on offshore production and refinery operations in the Gulf of Mexico led to a costly few months for drivers.

Drivers were forced to recall the Arab fuel crises of the 1970s with prices shooting up and up, dwindling supplies and plenty of frustration.

By early September Huntsville-area drivers were paying an average of $3.16 a gallon for regular unleaded gasoline, according to AAA.

Around Thanksgiving, with oil companies taking heated criticism and starting to draw the interest of Congress, prices fell considerably, down to around $2.15 a gallon on average in Huntsville. Prices briefly fell below $2 a gallon.

5. Thrailkill nominated to TVA board

In November, President Bush nominated Huntsville businessman Howard Thrailkill to serve on the Tennessee Valley Authority's board of directors. Thrailkill, if confirmed by the Senate, would be the first Alabamian to sit on the TVA board, which oversees the nation's largest public utility.

Thrailkill was renominated by the White House in December for a longer term than he was originally nominated to serve. The original term would have ended in May 2007, but the new nomination would end May 2011.

Bush announced five nominees to fill new seats on the expanded TVA board. In addition to Thrailkill, the nominees include three Tennesseans and one Kentuckian.

"Following his confirmation, Howard will be the first Alabamian to serve the TVA in this capacity, and his appointment marks the beginning of what I am confident will be a permanent tradition," U.S. Sen. Richard Shelby, R-Tuscaloosa, said when Thrailkill was nominated. "I have long been an advocate for the need of an Alabamian on the board, and I am pleased the president chose Howard for this important position."

6. Hotels, new developmentsunder way

The skyline of downtown Huntsville is changing, and some new hotel developments account for part of the new look. Construction of the 10-story Embassy Suites convention hotel reached a milestone in December with the topping of its highest floor. Construction on the $40 million, 300-room hotel got under way in December 2004. Officials hope to open the hotel by late fall 2006.

Work also continues on the Big Spring Summit office tower, which also will feature a second high-rise building of condominiums.

In Cummings Research Park, a groundbreaking was held in May for Bridge Street, a $210 million development that will mix restaurants, shops, entertainment and offices. Bridge Street, a European-style town center planned for a 100-acre site in Cummings Research Park, will also feature the new Westin Huntsville Hotel & Residences. The Westin, the first in Alabama, will have 200 rooms, 45 luxury condominiums on the top five floors of the 11-story structure and a conference center.

When fully developed, Bridge Street will have 75 stores and restaurants. Most of the stores and restaurants will be open by May 2007, with the office space to be finished a couple of months later. The Westin will be ready to open shortly after that.

In other news involving a downtown hotel, Big Spring Partners, a nonprofit downtown development group, purchased the 6.5-acre tract that houses the Holiday Inn Select. Proponents say the buy will help the city ensure the property's continued use as a hotel to accommodate major conventions, concerts, athletic events and shows.

7. Toyota plant expands

Huntsville's Toyota Motor Manufacturing Alabama plant broke ground in April on a $250 million expansion at its northwest Huntsville plant.

The expansion, which will allow for the production of additional V-8 engines, will nearly double the size of the plant, taking it from about 443,000 square feet to more than 700,000 square feet.

These V-8 engines will be built for the Tundra and Sequoia SUVs produced in Indiana and for Tundras that will be produced at a new Toyota plant under construction in San Antonio, Texas.

The expansion is expected to include an additional 300 jobs. Production is expected to begin in late 2006.

8. Boeing workers strike

Boeing machinists in Huntsville and Decatur, involving about 485 jobs, went on strike Nov. 2 in response to a company contract offer.

The strike was ongoing at presstime. Workers have complained the contract offer changed the terms for retiree medical care, eliminated new hires from the benefits offered to current workers and would unfairly raise worker health care costs.

Boeing said the offer was fair and reflected the company's desire to reduce its long-term health care costs.

Since the strike began, no contract talks have been held.

The strike has also delayed the launch of three Boeing rockets.

9. Winn-Dixie closes stores

The Winn-Dixie Stores company announced over the summer that it would close 326 stores and cut 22,000 jobs, unless it could find buyers.

The company closed 10 stores across North Alabama. Each store had about 70 employees.

Winn-Dixie, based in Jacksonville, Fla., conducted store-closing sales at 224 stores that were not sold at auction, including Huntsville stores on Whitesburg Drive, Winchester Road and Oakwood Avenue.

A former Winn-Dixie store at 7950 U.S. 72 at Wall-Triana Highway in Madison became the area's third Star Super Market store.

A former Winn-Dixie store in Meridianville was purchased by C&S Wholesale Grocers Inc. and became a Southern Family Markets store in September.

10. Siemens to close a local plant

Siemens VDO Automotive reported in July it would close one of two former DaimlerChrysler plants it purchased in Huntsville in 2004 and move some product lines to Mexico.

The company's Wynn Drive plant is expected to be closed by late summer 2007 and the company did not make clear how many of the plant's 400 workers would be affected. United Auto Workers union officials said the workers could be folded into jobs at the company's plant near the Huntsville International Airport, but company officials said it was premature to say no jobs would be affected by the changes.

Siemens wants to move the dashboard cluster work currently done on Wynn Drive to its Guadalajara plant because the plant specializes in that work. The Jetplex Industrial Park plant will continue its electrical work for engines and car bodies, according to company officials.

The two plants currently employ about 1,500 people, down from about 2,400 employees in 2003.