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February 20, 2013
Big River Steel Collecting Investors – Nucor Getting Nervous
Written by Sandy Williams
Written by: Sandy Williams
The Arkansas Senate and House questioned a panel of economic development and finance officials last week on plans for the $1.1 billion Big River Steel project in Osceola, Ark. The meetings were a preliminary step in legislature approval of a $125 million bond issue for the proposed steel plant. The state’s Amendment 82 allows for the Arkansas legislature to use general obligation bonds for major economic development projects.
The proposed state investment is comprised of a $50 million loan, a $50 million grant, $20 million for pilings and infrastructure and $5 million for bond insurance. Other incentives offered to the project include sales tax refunds on building materials, machinery and equipment; 4 percent income tax credit for five years; $10 million from the Governor’s Quick Action Closing Fund; $5 million from the Department of Workforce Services Trust Fund; a recycling tax credit equal to 30 percent of eligible recycling costs; and a sales tax exemption on utilities including natural gas and electricity.
