Local government officials are expected to sign off on an agreement for Kia Motors Manufacturing Georgia to secure a $1.6 billion bond and in turn pay out millions to Troup County and the city of West Point and generate more tax revenue for the school system.
A memorandum of understanding spells out a plan for Kia Motors Manufacturing America to invest $1.6 billion over the next 16 years for expanding its model offerings, including additional tools, equipment and possible building expansions. Kia is asking the Troup County Development Authority to issue $1 billion in bonds and the West Point Development Authority to issue $600 million in bonds for the improvements, and would pay the county development authority $400,000 in compensation and West Point Development Authority up to $650,000.
In compensation for increased public safety and infrastructure improvements necessitated by Kia, the company is proposing to pay the city of West Point $6 million over 16 years and an additional $3 million to the county that will be earmarked for a career academy.
In return, the county and West Point agree to give all capital improvements made with the bonds a 100 percent tax abatement for the 16 year-period. The school board, similar to its current agreement, would give a 50 percent tax abatement for the first eight years and 25 percent abatement for the last eight years of the proposed agreement. The school system could reap $47.5 million in additional taxes from the agreement, if all the planned improvements are made.
Troup County, the Troup County Development Authority, Board of Education and city of West Point signed off on the memorandum today.
For more on the agreement, check Wednesday’s edition of LaGrange Daily News.