Exemption tabled by Morgan tax board
According to reports, the Morgan County Board of Tax Assessors balked at approving a tax exemption proposal involving the planned Rivian EV plant on April 27.
The JDA of Morgan, Newton, Jasper and Walton counties responded by claiming that the board held an illegal meeting on April 27 by failing to provide proper public notice.
The JDA wants the board to call another meeting to approve the tax exemption. The Walton County Board of Tax Assessors had already approved the tax exemption the day before.
The JDA says that in most cases PILOT payments are not made to government entities for three or more years, but Rivian will begin submitting the payments next year. “With the addition of Rivian, local PILOTs and tax revenues generated from Stanton Springs and Stanton Springs North are estimated to total more than $900 million over the next 25 years,” the press release said. “The primary benefactor of these funds are the local school districts, which will collectively receive approximately 60% of this amount. The balance should be distributed to the four counties and the City of Social Circle for continuation of their government functions, including police, fire, roads, parks and other services for the public benefit.” According to the JDA, the property where the Rivian EV plant is to be located currently generates tax revenues of approximately $80,000 annually.
“In 2023, this property will begin generating $1.5 million annually for six years and then the PILOTs increase significantly, starting with a jump to $12 million in year seven,” the press release says. “Under the agreements, if Rivian exceeds its initial investment commitment of $5 billion, then the PILOT payments also increase based on a defined schedule in the agreement.”
“We are excited that the JDA has taken this important step, so we can begin sharing the incredible benefits this opportunity will provide to its adopted local communities.” Georgia Department of Economic Development Commissioner Pat Wilson said.
“The positive generational effects will be tremendous for the area, and we look forward to being able to celebrate the full scope of this project in the near future.”
THE JDA says an economic impact analysis shows that the projected total impact of Rivian’s 7,500 jobs will have a significant impact on employment and labor income.
“The results show that in addition to the direct jobs created, there are an additional 7,978 jobs created as an indirect and induced result of the Rivian project,” the JDA press release said. “Collectively, these 15,478 jobs are projected to generate over $1 billion in labor income. The analysis also shows that the total value added of the project exceeds $2 billion and the total output (value of industry production) is over $7 billion.
Reports say Andrea Gray, the attorney for the JDA, wrote a letter to the Morgan Board of Tax Assessors and asserted that the April 27 meeting was in violation of the Georgia Open Meetings Act. Gray also asserts that board member John Artz of Rutledge created an atmosphere of intimidation for other board members by “empowering unruly disruption by many of his companions from the opposition group,” according to a story in the Newton Citizen. Artz is married to the president of an anti-Rivian group, according to the same story.
“While the meeting was not valid, his actions prevented the board from even considering the substance of the matter before them,” Gray wrote. “He served to detract from the issue for decision, encouraged questions from the anti-Rivian crowd, which were far beyond the purview of issues before the board for decision, and forced the matter to be tabled even against the advice of his own legal counsel.”
According to another press release, the JDA had already approved the final Economic Development Agreement (EDA) between the JDA, the State of Georgia and Rivian. This agreement outlines the commitments made by the all three parties to develop the facility at Stanton Springs North.
“By signing these agreements and approving this development, we are taking a significant step toward realizing the original vision of the JDA from more than two decades ago: create an industrial park east of Atlanta with high-tech, good paying jobs for years to come,” said Jerry Silvio, Chairman, JDA. “Rivian’s jobs and investment, combined with our existing bio and hightech companies, mean we are adding unprecedented opportunity for the state and region. Opportunity like this not only translates into new jobs for our families, but it also means more resources and growth for our counties, providing the opportunity to reduce the tax burden on local homeowners, improve schools and invest in parks, trails and public safety.”
According to the JDA, the agreement ensures that the project follows locally required standards pertaining to water quality, groundwater recharge and runoff and other important local ordinances.