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Mississippi Signs on the Assembly Line

Mississippi has struck a mega-deal with Nissan Motor Co. to build a new auto plant north of Jackson, but will pay a pretty penny to get the plant's 4,000 jobs.

Mississippi has struck a mega-deal with Nissan Motor Co. to build a new auto plant north of Jackson, but will pay a pretty penny to get the plant's 4,000 jobs.

The state is ponying up $295 million for job-training expenses and infrastructure upgrades plus future tax breaks to lure the plant, which will begin turning out sport utility vehicles in 2003. State officials say the plant will not only carry a $160 million annual payroll but will spur side industries and boost Mississippi's image. "It's the well-paying jobs of companies like Nissan and other companies who decide to move here because of Nissan that will keep more Mississippians in Mississippi," says Lisa Mader, spokeswoman for Governor Ronnie Musgrove.

The state legislature approved the deal in November, during a one-day special session. But despite unanimous votes in both chambers, many lawmakers privately expressed reservations at the size of the deal. Nobody, it seems, wanted to come off as anti-business. "If it had been a secret vote, I don't think it would've passed," says one legislator. "It's too much. We're giving away too much money to a wealthy corporation that could've afforded to pay."

Nevertheless, veterans of Mississippi's past smokestack-chasing battles, especially those with neighboring Alabama, say the Magnolia State got a good deal. Seven years ago, Alabama offered $253 million to Mercedes-Benz for 1,500 jobs, which comes out to about $168,000 per job. Mississippi is paying about $73,000 per job. Alabama also vied for the Nissan facility.

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