Part of the deal local officials promised to the Korean tire manufacturer, which is expected to bring more than 400 jobs to Bibb County, was that they would wave permits and fees related to the plant’s construction.
Economic development officials already have compiled a nearly $12.5 million pot of money that will help pay for things such as site acquisition and preparation, infrastructure improvements and other startup costs.
As policy, Macon does not generally forego permit fees, city officials said. So Macon will instead contribute cash to the pile of incentives and in-kind work that is being provided by state and federal grants, the Bibb County Commission, the Macon Water Authority plus other public and private entities.
The project will require about $280,000 be paid to Macon’s Bureau of Inspection and Fees as well as the Macon-Bibb County Planning & Zoning Commission, said Chip Cherry, who is president of both the Macon Economic Development Commission and the Greater Macon Chamber of Commerce.
Competition for the plant was intense, Cherry said, and necessitated "extraordinary incentives" – including the agreement to wave permit fees.
He told the council’s Appropriations Committee that the project was one of the state’s largest when negotiations began last year, and that through sales tax revenue on equipment and energy used, Kumho’s presence in Bibb County would directly repay Macon within four to five years.
Development officials also have pitched Kumho’s extensive economic impact on the region, from the company’s investment in its facility to its high paying, skilled jobs, and estimate a net benefit of $7.6 million during the next 20 years.
Council members seemed to recognize the importance of the plant, while at the same time expressing some concern about the city’s ability to contribute. The money will be paid from Macon’s unallocated reserve account, and would appear to cause the balance of the fund to dip down to $90,000.
Human Resources Director Ben Hubbard said about $500,000 in salary savings from vacant positions – the financial source of the reserve account – was in the process of being transferred into the fund to replenish it.
Appropriations Chairman Mike Cranford called Kumho a "wonderful project" and a unique opportunity for the city. Still, he took lighthearted note of the impact on city coffers and said he wanted Macon’s contribution to be noted.
"We’re officially broke," he announced to the room after his committee unanimously approved the payment. "Y’all can go home." (Tire Review/Akron)
