Bill Johnson, president and chief executive officer of Tennessee Valley Authority, speaks Wednesday about the certification of 1,252 acres of Limestone County farmland as a TVA mega site. Behind Johnson from left are Joe Ritch, chairman of the TVA board of directors; Ed Castille, director of Alabama Industrial Development Training; Huntsville Mayor Tommy Battle; and Limestone County Commission Chairman Mark Yarbrough.

A piece of farmland in Huntsville-annexed Limestone County could soon be home to a world-class industry after receiving Tennessee Valley Authority ‘megasite’ certification.

Officials with TVA, the city of Huntsville, Huntsville/Madison County Chamber of Commerce, state of Alabama and Limestone County Commission made the announcement Wednesday. Economic and government leaders spoke to the media across the street from the 1,252-acre property known as the Sewell tract.

The property, which has been kept under option by the city of Huntsville for six years, was previously considered by Volkswagen for a new manufacturing facility. Volkswagen ultimately decided to build in Chattanooga. Officials hope to land an industry of Volkswagen’s caliber on the Sewell site.

“We’ve been in the megasite program for 12 years and we’ve created 30,000 new jobs and a capital investment of more than $6 billion,” said Bill Johnson, president and CEO of TVA. “We have this piece of farmland behind us. … Within a year, I want to see something done over here. Not started, but done. So let’s get to it.”

Huntsville native Joe Ritch, chairman of the TVA Board of Directors, referred to the tract as a “field of dreams.”

“We have a shovel-ready site ready to bring jobs, and I look forward to coming to the groundbreaking,” he said.

Johnson later explained TVA and economic development officials would be searing for “the right prospect” for the property. He added the one-year time frame is “aggressive,” but said there has already been interest expressed in the property.

Limestone County Commission Chairman Mark Yarbrough credited Huntsville Mayor Tommy Battle with Wednesday’s announcement. Yarbrough recalled receiving a congratulatory phone call from Battle the night he won the chairman’s post. He said Battle wanted to discuss future plans over breakfast at 7 a.m. the next day.

Yarbrough explained Battle discussed his goals for Huntsville-annexed portions of Limestone County, and receiving a TVA megasite certification was one of those. The chairman said having the Sewell site certified not only gives the region a chance to compete for a lucrative project, but also to lead the way.

“We continue to be excited about our success in economic development and we’ll continue the teamwork aspect and keep on keeping on,” he said.

Industries sought

Both Yarbrough and Battle said there has been interest in the property, but declined to name specific industries.

“We’ve had a few nibbles, but no bites,” Battle said. “Nothing we can set a hook to.”

What officials will look for, Battle said, is a high-tech industry known for advanced manufacturing techniques. Another critical component will be the industry’s ability to act as a job multiplier for the region.

Johnson said the decision by Volkswagen to set up shop on a TVA megasite outside Chattanooga led to a $1 billion investment and 2,000 direct jobs. The project created an additional 9,000 jobs as supply businesses relocated to the Chattanooga area. Those secondary jobs also injected an additional $500 million per year into the city’s economy.

Five of seven previously certified megasites have landed industrial projects with a collective investment of more than $5 billion, officials said.

Battle said economic development leaders already put the brakes on a rolled steel mill interested in the project because it didn’t fit with the neighborhood or the area. He said the project that lands on the Sewell site will be one that “all of North Alabama can be excited about.”

Certification process

In order for a site to be certified, it must be at least 1,000 acres with interstate access, have the potential for rail service, and utility service capable of serving a major manufacturing company.

During the certification process, the site must also undergo a series of due diligence studies to determine the capacity of the land to accommodate a manufacturing operation. It also must show that no damage would be done to the environmental, historical or cultural nature of the surrounding area.

The Huntsville-annexed site was certified by McCallum Sweeney Consulting.

“The location decision process demands available sites and those sites need to be ready for development,” said Kimberly L. Williams, principal at McCallum Sweeney Consulting. “By achieving certification, the economic development team has proven that the Huntsville Mega Site is ready for development.”

What the certification means

Any project lured to the Sewell tract would be eligible for any number of state, local and TVA incentives. Infrastructure improvements have traditionally been a bargaining chip for local governments.

Gary Scroggins, general manager of Athens Utilities, said he worked with officials for two years on the Volkswagen project, so he has an idea about what will be required for a new industry. Athens Utilities is building a new electrical substation not far from the Sewell tract, but Scroggins said an additional substation may be needed, depending on the size of the prospective industry.

Last year, the Huntsville City Council voted to approve a tax-increment finance district for 7,131 acres located to the west of the Sewell tract and north of the Polaris manufacturing facility on Greenbrier Road. Infrastructure upgrades to be funded out of the city’s sixth TIF district include the four-laning of Old Highway 20, the completion of the four-lane Greenbrier Parkway and running sanitary sewer lines from Limestone Creek to the TVA megasite.

Having the seal of approval from TVA essentially makes the Sewell tract shovel-ready, or as Battle called it, “plug and play.”

“We’ve taken all the questions out of the property,” he said, adding geotechnical site work is compete as are soil samples and infrastructure concerns. “You can set up an industry and know everything is in place, so it’s much more desirable. In the real estate world, questions are what kill you every time and there’s no questions on this.”