The Arkansas Senate Committee on Agriculture, Forestry and Economic Development on Tuesday unanimously approved the authorization of a bill that will allow economic development incentives and several other orders to fund the Big River Steel Mill construction.
The committee voted to advance Senate Bill 820, which also allows the issuance of general obligation bonds in connection with the steel mill. All orders fall into compliance with Amendment 82 of the Arkansas Constitution.
The specific incentives being paid for under Amendment 82 include a $70 million grant to fund infrastructure costs associated with building the mill, a $50 million loan that the company will pay back and a $20 million grant that is dedicated to the cost of stabilizing the ground on which the mill will be built, next to the Mississippi River.
The approval gives the committee the clearance to look into the funds, but the full approval of what funds will be used will require more research.
Several officials spoke both for and against the authorization in the meeting. Arkansas Economic Development Commission Executive Director Grant Tennille, Osceola Mayor Dickie Kennemore and Big River Steel Chief Executive Officer John Correnti all spoke in favor of the bill, while Nucor Steel Arkansas Chief Executive Officer Sam Commella spoke against it.
The bill will now go to the House committee, which Tennille said will vote on the bill tomorrow.
"We're confident it will be approved in the House Committee and we're confident that it will pass on the floor," Tennille said.
Read Wednesday's Arkansas Democrat-Gazette for more details.