Lowndes County supervisors approved two new fee-in-lieu agreements with Steel Dynamics during Wednesday’s board meeting, bringing the number of such arrangements with the steel company to four.
Acting on the recommendation of Golden Triangle Development LINK CEO Joe Max Higgins, the board unanimously approved 10-year fee-in-lieu agreements for Steel Dynamics’ Phases 3 and 4, which represent a combined investment of $247 million.
“We probably have more fee-in-lieu deals than any other county in the state,” Higgins told supervisors. “They’ve worked out well for us.”
Board President Harry Sanders said the fee-in-lieu agreements would produce roughly $200,000 annual for the county and between $240,000 and $250,000 annually for the school district.
Higgins said that while fee-in-lieu agreements with other large industries have had a 30-year term, the Steel Dynamics fee-in-lieu arrangements have been for 10 years each.
The two previous fee-in-lieus will expire in 2017 and 2019, at which point the county and its school district will receive the full ad valorem taxes.
Fee-in-lieus are typically used as an incentive to attract major companies and encourage expansion by reducing the company’s tax burden by roughly two-thirds over the length of the agreement.
The fee-in-lieus approved Wednesday covers the already completed Phase 3, which represents $147 million investment in equipment and facilities between 2012 and 2015, and Phase 4, which includes a $100 million expansion to build a paint facility at the plant.
“I think, maybe, we have gotten so used to what’s been happening here that we don’t realize what a big deal this is,” Higgins said. “What we’re talking about here today is quarter-billion dollar investment. That’s huge.”
Asked how soon Steel Dynamics plans to start on the paint facility, Higgins said he expects work to begin soon.
“I’d say by mid-to-late August, you’ll start seeing some movement out there,” he said.
Crawford, Steens projects
During a meeting that featured a light agenda, the supervisors heard updates on a pair of current projects.
Columbus-Lowndes Recreation Authority Director Greg Lewis updated the supervisors on the progress of the computer lab that is being added at the Crawford Community Center, as well as a new community center in Steens.
“The computer lab will be set up (Thursday),” Lewis said. “We think it will be a great thing for the community because a lot of people there don’t have computer access. The computers will be linked to the Greater Columbus Learning Center and the WIN Job Center, so people will be able to have access to those programs without having to leave town.”
The lab, which houses 10 computers, is funded by an $8,000 grant from Toyota.
Lewis said work on the new community center in Steens is progressing well.
“We’ve finished the exterior and we should start seeing work on the interior pretty soon,” he said.
Board President Harry Sanders asked Lewis to make a recommendation to the CLRA Board on a name for the center.
“I’d like for you to ask your board to consider naming the center after Charles Chambley,” Sanders said. “He was instrumental in getting that center for the area and worked really hard for it. I don’t know if you name centers after people, but if you do consider that, I can’t think of a better person to name it after.”
District 4 Supervisor Jeff Smith also update the board on the progress of the new fire station in Crawford.
“The dirt work has been done and they should be pouring concrete soon,” he said. “The building has been ordered, so it looks like things are really coming along.”
Slim Smith is a columnist and feature writer for The Dispatch. His email address is [email protected].
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