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County-backed bonds needed in Nissan expansion



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By: MICHELLE WILLARD, Post Staff Writer
Posted: Wednesday, November 11, 2009 12:17 pm
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Rutherford County’s unemployment rate has hovered around 10 percent for the past few months.

Job losses have hit every sector with the biggest losses coming in construction and manufacturing.

But the tides may be turning in the manufacturing sector with Nissan staging a massive plant expansion, which will begin within the next two years.

The automaker plans to retool and expand its factory by 1.3 million square feet for the production of zero-emission electric vehicles and in turn create around 1,700 jobs, Chamber of Commerce President Paul Latture said.

But in order to complete retooling of the Smyrna plant and add a battery manufacturing facility, the company has received $1.6 billion in loans from and federal government. The automaker also wants county backing in the form of up to $2.5 billion in tax-exempt industrial revenue bonds.

Baker said the county would not be responsible for the industrial revenue bonds and it would not limit the county’s borrowing ability.

Nissan will not receive the money in one lump sum, but can draw from the bonds when additional funds are needed to complete the project.

The Rutherford County Commission has final say on the issuance of the bonds with a vote scheduled for Thursday night at its regular monthly meeting.

Nissan anticipates that the first phase of the project will launch in late 2012 with the creation of approximately 1,300 new full-time jobs. Nissan also foresees a second phase of the project in early 2015 that will add another 400 additional new full-time jobs.

Industrial Development Board Director Jim Baker told the county’s Budget and Finance Committee Nissan projects the plant expansion would indirectly produce 10,708 jobs in addition to the payroll jobs at Nissan. He said the anticipated wages would be approximately $525 million and generate $11.3 million in new local taxes.

•••

The county commission will also vote to rescind a legal services agreement with current county attorney Jim Cope’s law firm, Cope, Hudson & Reed, and in a related issue, vote to amend the Private Acts of Rutherford County to redefine the role of the county attorney.

Rutherford County’s Steering Committee met last week to discuss changes to the Private Acts of Rutherford County to make a new legal services agreement with current county attorney legal.

“We’re hoping to come forward with a new proposed Private Act that is better tailored to what we need,” Steering Committee Chairman John Rodgers said at the time.

Rodger said the amended Private Act will be broad and simply worded, unlike the current version, which is detailed and specific.

“We’re looking to change the Private Act to give more flexibility,” he said, “including the flexibility to hire counsel that could be in-house, could be contractual, and so on.”

Michelle Willard can be contacted at 615-869-0816 or mwillard@murfreesboropost.com.
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Tags: County Attorney, Nissan, RuCo
Member Opinions:
By: RonB on 11/12/09
2.5 BILLION dollars? That's over a million dollars per job created! "Baker said the county would not be responsible for the industrial revenue bonds". Then who is if Nissan doesn't pay them back? If the taxpayers are not responsible for the bonds, then why is the Rutherford County Commission involved? If this were a good investment, money would be found in the private sector. BEND OVER TAXPAYERS!


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