The Daviess County Council has approved an ordinance for a $2.1 million bond issue for Grain Processing Corporation. The move clears the way for the first of three bonds that are expected to have a significant impact on the east side of Washington.
The county bond issue will correct what officials call a misunderstanding between the county and GPC on a tax abatement for business personal property issued in 1999. The company had believed the abatement covered all additional equipment added over a ten-year period. Instead the abatement was for 10 years on the equipment that was added at that time. “This will make GPC whole on the abatement,” said Ron Arnold with the Daviess County Economic Development Corporation. “This gets everyone where they intended to be in 1999.”
“This is a good faith move by the county to straighten out that miscommunication,” added County Council President Jo Arthur. “This should help move the other two bond issues forward.”
The bonds will be paid off by utilizing money collected in the GPC Tax Increment Finance (TIF) District. The bonds will amount to a lump sum of the taxes the company paid on the equipment in question with the taxes recovered from the TIF district going to pay it back to the county.
“There is no risk to the county on this,” said County Attorney Grant Swartzentruber. “Since this is coming from TIF funds it won’t impact the county’s ability to bond other projects in the future.”
With the passage of the ordinance the bonds are expected to be sold soon. “This starts the actual process for getting the bond issued,” said Arnold.
The GPC bonds have been in the works for the last 18 to 24 months. The company and development leaders will now turn to the City of Washington for the other two bond issues. “It’s a step forward for the economic development efforts in Daviess County,” said Arnold.