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Goochland OKs performance agreement to support Eli Lilly investment; tax rebates capped at $45.9 million
Summary
The Board of Supervisors voted to approve a performance agreement with Eli Lilly tied to a major West Creek investment; the agreement rebates a portion of incremental taxes (up to $45,864,691 over 20 years) and includes local commitments for workforce and infrastructure support.
The Goochland County Board of Supervisors on Dec. 2 approved a performance agreement with Eli Lilly that ties local tax rebates and support to a multi‑year investment in West Creek.
Sarah Worley, the county’s deputy administrator for economic and community development, told the board the agreement specifies Lilly will invest approximately $2.15 billion over the next 10 years, including about $812 million in machinery and tools and roughly $1.3 billion in real estate and business personal property. Worley said the incentive package will provide tax reimbursements capped at $45,864,691 over 20 years, and that “no existing tax revenue will be rebated” — the rebates apply only to incremental revenue generated by Lilly’s project.
Under the agreement, Goochland will rebate 45% of incremental real‑estate taxes actually received from Lilly above the project base value and retain 55% for county priorities, including paying down Tuckahoe Creek Service District (TCSD) debt. The county will similarly split machinery & tools and business personal property taxes according to formulas in the contract. Worley said the contract also requires Lilly to fund a third‑party environmental inspection program, a dedicated county project manager and to support local career and technical education expansions.
Board members pressed for context about state support and timing. Worley said the commonwealth has offered workforce programs, expedited permitting and up to $100 million in incentives to support the investment. Chair Winfrey and other supervisors characterized the agreement as transformative for county revenues and services; one supervisor noted that when the project generates revenue that exceeds certain thresholds the county will keep 100% of taxes between two investment bands described in the presentation.
The board approved the performance agreement by motion. The vote followed a presentation that the county attorney and Economic Development Authority had reviewed the contract terms and that the EDA had executed a related agreement.
The performance agreement is expected to support local infrastructure and workforce development tied to the Lilly facility; precise timelines for construction and payment of rebates will be governed by the contract and subsequent annual reconciliation of incremental tax receipts.
