The Bulloch County Commissioners voted to finalize a 10-year tax abatement for a manufacturer coming to Bulloch County as part of the Hyundai Meta Plant.
The move comes weeks after commissioners voted to approve the FY 2024 budget and announced that an increase in the county’s millage rate is likely forthcoming.
Hanon Systems Alabama Corp., a South Korea-based operation, announced its intention to come to Bulloch County in May of 2023, proclaiming its new facility will offer 160 jobs to the community. The facility, located at the Gateway Regional Industrial Park north of I-16, is supposedly a $40 million project. According to Global Atlanta, the company is a provider of automotive thermal management products and HVAC parts like vents, compressors, cooling fans and condensers.
Documents provided to the commissioners ahead of the meeting said the Development Authority had entered into a Memorandum of Understanding (MOU) with CG Statesboro, LLC and Hanon Systems Alabama Corp. for the location of a project in Bulloch County to supply vehicular HVAC components for Hyundai.
“The Development Authority, CG Statesboro, LLC, and Hanon Systems Alabama Corp. are the parties to the MOU, but the Board of Commissioners and Board of Tax Assessors have been requested to acknowledge the MOU and agree to applicable provisions. As an inducement for location of the project in Bulloch County, the MOU includes a 100% abatement of County ad valorem taxes for 10 years. The tax abatement does not include school taxes or taxes for the County’s fire district. In order to meet the closing schedule for this project, it was necessary to execute the signature pages prior to this meeting. Approval and ratification of the MOU is recommended.”
Wednesday evening, Commissioners voted on a tax abatement of 100% for ten years. The Bulloch County Development Authority also agreed to the following for the project conditions:
- A discounted land price for the companies from $1,700,000 to $850,000 for the bond lease with the Bulloch County Development Authority
- Availability of $17,500,000 for Real Estate Bonds for the Real Estate Assets and $22,500,000 for the Personal Property Bonds for the Personal Property Assets of the project
- The Real Estate Bond lease is the responsibility of CG Statesboro, LLC (out of Alabama) while the Personal Property Bond Lease is the responsibility of Hanon Systems Alabama Corp, though the Development Authority will facilitate both.
- A promise by the Development Authority to apply for a $525,000 grant with the state on behalf of the companies
- A commitment to provide $20,000 in training to employees of Hanon Systems via Ogeechee Technical College
- A commitment to provide up to $10,000 worth of free office space to Hanon Systems
- Covered due diligence and geotechnical report costs of $17,625 paid to Terracon Consultants, Inc. to save Hanon Systems the expense
- Concierge services to the companies by the Development Authority to assist in setting up utilities, permits, and other project needs
The contract with the Development Authority lists ‘Year 1’ as no later than 2026 and the only instance in which the company would not be eligible for the tax abatement would be if the investment goal shortfall for jobs was more than 20% of what was promised.
Approval by staff was recommended and commissioners approved the abatement unanimously with no discussion as part of the consent agenda.
The complete Memorandum of Understanding is below.
How do we go about having a special election to eject our current commissioner’s and replace them. These people are not supporting Bulloch County resident’s needs and selling our county out from under us!