The county will potentially pass a resolution that will result in Bridgestone paying $650,000 per year for its current site and expansion in lieu of paying taxes.
At the county Financial Management Committee meeting Monday night, IDB president Don Alexander informed commissioners of a resolution request for the new Bridgestone expansion.
“This is basically more of a fallback position by the attorneys. Bridgestone has already announced that they are going to build a plant as big or bigger than the one they already have out there on the land that is owned by the IDB at this time. They are just wanting a resolution to say that we can make this transaction work,” said Alexander.
“This is just the approval to purchase as is? You are not asking for a tax break or anything like that?” asked Commissioner Christy Ross.
“That’s what this is. It would give them a PILOT Program on the land owned by the IDB,” said Alexander.
The resolution reads, “The IDB has negotiated a lease providing for a payment-in-lieu-of-taxes for the Facility in the amount of $650,000 per year (the ‘PILOT Lease’) commencing with the effective date of the PILOT Lease and extending for a period of 20 years from the date the last Project equipment is placed in service at the project.”
“Would this be $650,000 on the new piece or $650,000 on the entirety of Bridgestone?” asked Finance Department director Justin Cotten.
“The entirety. What will happen is, and keep in mind with a project of this size there are communities across the world vying for it, and what we did is we said since you are a neighbor here we would still like you to provide some to help out with the roads and schools that we have and so forth. The $650,000 would go into the Warren County Budget,” said Alexander.
“But they are already paying $650,000 so this would -,” started Cotten.
“This one would start at the time the certificate of occupancy was taken up and continue,” said Alexander.
“I would personally like a little more time to digest this before I have to vote in this committee. That is a lot for me to take in for me to feel like I am making an informed decision,” said Ross. “Let me be clear, I am not against it. I just want to be sure I understand it all completely.”
Commissioner Scott Rubley asked Alexander if there was any negotiation involved or of Bridgestone. Alexander said the negotiation actually favored Warren County because at first they wanted a tax release for 20 years until Alexander asked them to continue the $650,000 a year.
“My only concern is I felt like we had the ball in our court since they were an existing plant rather than a new plant moving in and they already had the groundwork laid,” said Rubley. “It is hard to say no to that many jobs.”
After discussing the potential benefits, the committee voted to unanimously approve the resolution. The full County Commission will vote on this at their upcoming meeting.
