Council approves 30-year fee-in-lieu deal for Bomag Americas expansion, citing $13.7 million investment and 75 jobs

Fairfield County Council approved final reading of Ordinance No. 8-42 on April 14, authorizing a fee-in-lieu-of-ad valorem-taxes (FILO) incentive agreement and related land purchase for an economic development project renamed in the ordinance to Bomag Americas Inc. and Fiat Distribution Center, LLC.

Economic development staff presented the project summary after executive session. The staff presentation said the project is a multi-phase expansion by an existing county manufacturer that includes construction of a new distribution facility, expansion of production lines and a customer training facility. Staff reported that the project would represent a capital investment of about $13.7 million and create 75 new jobs within three years with an average wage of about $31 per hour. The county offered a 30-year fee-in-lieu agreement with a fixed millage rate, a multi-county park designation element and special-source revenue credits described in the presentation.

County staff provided a cost-benefit summary included with the agenda materials. That analysis, as presented to council, estimated an annual payroll at the facility of roughly $4.8 million and projected a 15-year economic benefit of approximately $98.3 million with net public revenue of about $708,746 over the same period; staff reported a public-revenue return of about $1.19 for each dollar invested.

Council moved to amend the ordinance by substituting the draft approved by counsel at reading with the version renaming the project and updating the FILO and land-purchase agreements. The motion carried on a roll-call show of 7-0.

Ms. Broward, the county economic development presenter, summarized the project and the financials. No council member requested additional changes after the amendment and vote; the ordinance and associated agreements were approved as substituted.