Munitions company gets $26M in incentives for move to Blount County

The incentives package negotiated to bring Advanced Munitions International to Blount County from Arizona totals about $26.6 million, reports the News Sentinel. That excludes local property tax abatements by the county and the city of Alcoa.

AMI and state and local officials announced Oct. 20 that the company, based in Payson, Ariz., will invest hundreds of millions in building a new “global headquarters” and munitions manufacturing facility in Partnership Park in Alcoa, ultimately creating hundreds of jobs. The company said it expects to start construction next spring and open in late 2018.

The incentives package includes:

— The $11,325,000 agreed-upon value of the 236 acres deeded over to the company Oct. 19 by the Industrial Development Board of Blount County, Maryville and Alcoa. The IDB acquired the bulk of the property, 222.5 acres, for $2,336,460 in 1998, county property records show.

— A TVA grant of $6,769,224, which the federally owned utility has refused to publicly disclose.

— A previously undisclosed state economic development grant of $6,050,000, in two phases, which the state Department of Economic and Community Development (ECD) confirmed Wednesday.

— A grant of $125,000 from Oak Ridge National Laboratory.

— Highway improvements totaling $2.3 million for access to the facility, mostly funded by the state.

— Property tax abatements on the facility and its equipment for the first six years the plant is in operation. The company would pay 40 percent of the property taxes it would otherwise owe in its first year of operation, 50 percent the second and so on until it pays 90 percent the sixth year and 100 percent in years seven and thereafter.

The agreement says that the industrial development board will convey the land to AMI for $1, then reacquire the property and lease it and the facility to the company “with a nominal $1 purchase option. It says the board will issue industrial development revenue notes for the cost of the improvements and buildings, and AMI will pay the board the amount necessary to pay debt service on the note.