Miss. courting new tire plant project

JACKSON, Miss. (Feb. 4, 2016) — Mississippi Gov. Phil Bryant has convened an extraordinary session of the Mississippi legislature today to consider measures aimed at supporting an industrial project that would include “certain tire or other rubber or automotive manufacturing plants….”

The session will be asked to amend several sections of the Mississippi Code of 1972 — also known as the Mississippi Major Economic Impact Act — to provide for financial assistance and/or tax breaks for an industrial project of this nature.

The governor's proclamation does not identify the targeted company or companies, but Mississippi media have reported widely that the company in question is Continental A.G.

The German tire maker — which is in the midst of a $500 million expansion at its 2-year-old car and light truck tire plant in Sumter, S.C. — declined to comment on the reports, calling them speculative.

The local media reports put the proposed project at a targted industrial development zone in Hinds County, near Jackson, with an investment estimated in the $1.5 billion range.

Among the specific measures mentioned in the governor's proclamation:

• Authorize the issuance of state general obligation bonds;
• Allow the Mississippi Major Economic Impact Authority to award contracts on the “basis of negotiation”;
• Offer income tax-exempt status, provided certain employment goals are met;
• Offer “fee-in-lieu” status in place of ad valorem taxes;
• Authorize the county where projects are located to “assist the enterprise establishing the project and certain public agencies in defraying certain costs” and to appropriate such funds from its general fund or the proceeds of general obligation bonds; and
• Authorize certain public agencies to provide “periodic grants and other such contributions of funds.”

Keep checking tirebusiness.com for updates to this story.