Capitol Beat is a nonprofit news service operated by the Georgia Press Educational Foundation that provides coverage of state government to newspapers throughout Georgia. For more information visit capitol-beat.org.
The state’s top economic development official expressed disappointment Monday with electric vehicle manufacturer Rivian’s decision to delay building a new plant east of Atlanta but said the company remains committed to Georgia.
“It stings,” Georgia Commissioner of Economic Development Pat Wilson told members of a state Senate budget subcommittee. “(But) this company has said they will live up to all their promises and commitments. … Until we hear otherwise, this is an active project.”
Rivian executives announced last Thursday a pause in the company’s plans to invest $5 billion in an EV plant near Covington that would create 7,500 jobs. Instead, Rivian will manufacture its new R2 midsize SUV model at an existing plan in Normal, Ill.
To land the deal, the state and the local development authority offered Rivian $1.5 billion in incentives including tax credits, a 25-year no-cost lease, and $198.1 million in site and road improvements on 1,978 acres.
Thus far, the state and the Joint Development Authority of Jasper, Morgan, Newton, and Walton Counties have spent $141 million to acquire the property, prepare the site and drain wetlands, Wilson said Monday.
For its part, Rivian has made two payments in lieu of taxes (PILOT) to the development authority totaling $3 million. Sixty percent of those payments will go to local school systems, he said.
“The payments don’t stop because they’re paused,” Wilson told the subcommittee. “The community is going receive a benefit even though there’s no active construction.”
Under an agreement Rivian signed off on in 2022, the company must fulfill at least 80% of its investment and jobs commitments by the end of 2030. Rivian has committed to maintaining those timelines.
“We’re…
Read the full article here
