MONTGOMERY, Ala. — The cost of tempting Hyundai Motor Co. to bring its first U.S. manufacturing plant to Alabama didn't come cheap — more than $234 million of public incentives.

        That includes money for job training, highway improvements, land purchases and tax credits, Finance Director Henry Mabry announced Thursday.

INCENTIVES

Money approved to bring Hyundai Motor Co.'s plant to Alabama:     • $76.7 million in tax breaks     • $61.8 million for training     • $55 million to buy and develop 1,650 acres of rural pasture land where the plant will be located     • $29 million for transportation improvements     • $18.2 million in private enticements, including electricity, a railroad line, natural gas and telecommunications     • $12.1 million for advertising, a housing assistance program and other miscellaneous incentives     Total: $252.8 million.     Source: Alabama Finance Department

        The incentive cost for each of the anticipated 2,000 jobs created is about $117,317 — less than what was paid to lure the Mercedes-Benz plant to Vance but more than Honda demanded for its factory in Lincoln.

        “We didn't provide any incentives we didn't have to,” Mr. Mabry said. “This is a good investment for Alabama.”

        Hyundai announced Monday it would build the $1 billion plant south of Montgomery. It is expected to produce 300,000 vehicles a year by 2005.

        Most of the money originates from Alabama taxpayers. State taxes pay 51 percent and local governments fund 37 percent of the total amount. Private companies pay the remaining 12 percent, for a total of $253 million.

        These enticements were necessary to draw a company of Hyundai's caliber and meet its basic needs, Mr. Mabry said. Anything less could have resulted in the automaker choosing another site, such as one that was considered in Glendale, Ky.

        State economic officials estimated about 4,000 more jobs could be created in impoverished surrounding areas to support the plant's presence. In all, the estimated annual economic impact of the 6,000 new jobs could total $280 million each year.

        The package provides $82 million the company won't have to pay in corporate income taxes over the next 20 years, Mr. Mabry said.

        Hyundai will still have to pay local taxes for education, Mr. Mabry said.

        “What we're trying to do by enticing Hyundai is to better the quality of life in Alabama,” he said. “We were going to do what it took to make Alabama the auto manufacturing capital of the South.”

        An additional $18 million will be provided by private companies for electricity, a railroad line, natural gas and telecommunications.
       

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