International Truck to build engine factory at Jetplex

Airport authority OKs sale of 30-acre lot for $1.8 million

A 300,000-square-foot plant to assemble International Truck and Engine Corp.'s new "big-bore" diesel engines for heavy-duty trucks is expected to be completed by next March.

The Huntsville/Madison County Airport Authority on Tuesday authorized the sale of a 30-acre lot in Jetplex Industrial Park North to International Big Bore Diesels LLC. The plant will be about a quarter of a mile northwest of the existing 700,000-square-foot Huntsville plant - International Diesel of Alabama LLC, a subsidiary of International Truck and Engine Corp.

The airport authority also took action involving two other industrial park projects. Along with the International development, the three industrial park projects represent capital investments totaling more than $47 million, said Brooks Kracke, the park's director. The projects also will mean 245 new employees in all and a payroll of about $12 million a year, he said.

International Diesel estimates total capital investments for the project will reach nearly $42 million. The purchase price of the land, located on Short Pike Road and adjacent to Interstate 565, is $1.8 million and the new building will cost an estimated $21 million. The plant is expected to have 70 employees initially and, after three years, is expected to have 175 employees and a payroll of $9.1 million a year.

An access agreement with airport officials allows the company to proceed with site testing and site preparation before the title is transferred. That work has already started at the property.

The authority also agreed to grant certain tax abatements related to the acquisition of the property and improvements for the International project - about $230,000 a year for a 10-year period in non-educational property taxes, and one-time abatements of about $1.13 million in non-educational sales and use taxes and about $63,000 in mortgage and recording taxes.

The sales agreement provides for a first right of refusal of an additional 18 acres northeast of the site for an additional five years and provides that about 3 acres on the north end of the option parcel be purchased no later than five years from the date that the sales agreement is executed.

The airport authority also authorized the sale of a 4.47-acre lot at 115 Electronics Circle in Jetplex Industrial Park to Industrial Properties of the South.

A 42,000-square-foot light industrial warehousing or distribution facility is planned for that tract.

The purchase price of the land is $245,850, with the total cost of improvements with the project estimated at $2.7 million. The projected completion date for the building is Dec. 31, 2007, and the facility is expected to have 20 employees and a payroll of $500,000 a year.

The authority agreed to tax abatements - about $14,850 a year over a 10-year period in non-education property taxes and one-time abatements of about $82,800 in non-education sales and use taxes and about $3,240 in mortgage and recording taxes.

The authority also granted tax abatements related to the acquisition of property and improvements for another project, Woodmont Park, a planned 98,000-square-foot print warehousing and distribution facility at 2845 Wall Triana Highway.

Jerry and Charlene Graham of Industrial Properties of the South bought the vacant former Perfect Home building at that site from a bankruptcy trustee. The land and building purchase and improvements will bring the project's cost to $2.57 million. The projected completion date is Dec. 15.

The Grahams estimate the facility will have 50 employees and a payroll of $2.25 million a year after three years.