Judge rules against components of incentive plan
The basis for a $700 million local property tax break for a $5 billion Rivian manufacturing plant was shot down by Ocmulgee Judicial Circuit Chief Superior Court Judge Brenda Trammell as she ruled in favor of a petition by opposition group Morgan County Land, Sky & Water Preservation.
As part of the deal with the Joint Development Authority (JDA), Rivian would still pay $300 million in local property taxes over the next 25 years.
At issue appears to be, among other things, the viability of Rivian as a company.
“Rivian’s cash reserves are quickly drying up, thus casting serious doubt on whether it will be able to commence, let alone complete, the project,” Trammell wrote in her opinion.
The decision went on to say the JDA has not “put forward sufficient CONTINUED FROM>> A1
evidence demonstrating that the project would promote the ‘general welfare within the territory of the authority.’” According to an AJC article, Rivian recently reported a net loss of $1.7 billion for a single quarter, citing supply chain issues and higher costs. The plan is for the company to produce 25,000 vehicles this year.
The concept for the site in Morgan and Walton counties is much bigger, as Rivian would plan to produce 400,000 vehicles on the 2,000-acre site, according to fortune.com.
Property tax abatements are a common practice in Georgia and their approval routine as a way to circumvent part of the state constitution that taxpayer funds may not be used as “gratuities” to companies or individuals.
The JDA and the Georgia Department of Economic Development issued a statement about future legal options.
“As the entire country is looking to revitalize and grow domestic manufacturing, protect American jobs, and secure the country’s economic independence, we are disappointed and respectfully disagree with Judge Trammell’s decision,” the statement read. “This is a transformational project for the people of this community, the State of Georgia, and the United States of America.”
The entities plan to continue to work to bring the project to fruition, the statement reads.
“We remain undeterred in our efforts to bring high-paying, American manufacturing jobs to Georgia, and are currently assessing all legal options,” the groups said.