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Representative for Evonik asks Mobile County to approve amendment increasing capital target and delaying operation date
Summary
A representative for Evonik asked the Mobile County Commission to approve a first amendment to a 2022 project agreement that raises the capital investment target and delays the commencement date; staff and outside bodies have approved related adjustments, and the representative said there is no additional county cost.
Jay Watkins, a lawyer with Maynard Nexon representing Evonik, told the Mobile County Commission on Monday that Evonik seeks a first amendment to a 2022 local project agreement to increase the company’s capital-investment target and push back the facility’s start-up date.
“We amended this project agreement through the chamber of the state department of commerce as well as with the industrial development board. Both of those have approved the amendment to increase the capital, expenditure and the commencement date,” Jay Watkins said. He told commissioners the amendment “is no additional cost to the county. We’re simply extending the completion date and increasing the capital expenditures that are approved under the project agreement.”
Watkins said the facility is a raw-material production line that must be sited near the existing Evonik campus because the material is “sensitive” and does not transport well. He told the commission that the project has experienced design and construction delays and cited inflation and rising materials and labor costs.
Watkins described earlier project figures inconsistently in the spoken remarks: he said the company initially sought a capital investment in the “176,000,000, excuse me, dollars 462,000” range and later said the project has grown to “$3,380,000,000.” The commission’s agenda text for the item (read during the meeting) lists an amendment that revises the capital investment from $176,462,000 to $380,000,000 and amends commencement and reporting dates; it also states the amendment does not alter the county’s financial commitment in the original agreement.
The commission did not complete a formal recorded vote on the amendment in the excerpted conference transcript. Commissioners acknowledged the request and thanked Watkins and the county staff. The agenda lists the item as “Approve 1st Amendment to the local project agreement between Evonik Corporation and the County of Mobile, known as Project MAL,” and shows the updated targets and dates to be recorded in the project file.
What happens next: the amendment is on the commission’s agenda for consideration; any formal approval, vote tally or signed amendment will appear in the minutes and contract documents on the county docket.
