Both companies are considering relocation or expansion in Lexington, said Steve Googe, director of the Davidson County Economic Development Commission.
“These are very substantial companies that have a track record of very consistent growth,” Googe said. “A lot of people are now seeing that maybe there’s some value to coming here, because it looks like our economy is going to start to turn.”
The two governing bodies held public hearings at Davidson County Community College, inviting input from local citizens and officials. Googe presented the proposed incentive packages during the hearings.
Project Lynx plans to invest about $20 million in a new plant, machinery and equipment and create 42 new jobs over three years. An additional 18 to 20 more jobs likely will be created from one of the company’s vendors, he said, and another vendor may even follow the company to locate here. Googe says the company intends to start construction on a facility in the next three months and be operational within one year.
County commissioners and city council approved an economic development grant of $145,833.33 each year for 12 years, to be split equally between Davidson County and the city of Lexington.
Googe said that Project V, a manufacturing, distribution and marketing operation, plans to invest about $12 million over a six-year period and create 300 jobs at or above the county average wage.
The two governing bodies approved an economic development grant of 0.0027 times the investment in machinery and equipment for the county, and 0.0028 times that investment for the city, each year for seven years. Googe estimated the annual value of the grant to be $55,000.
The EDC has been working on Project Lynx for about six years, Googe said. The company was set to announce an expansion in the county in 2005, but it chose to withdraw.
“We’re back now at the point that it looks like if we can get our stuff approved and some other things fall into place, that we’ll be able to announce that shortly,” Googe said.
The identities of the companies will be revealed if and when a contract agreement is reached, because the county still is in competition with other communities in other states. Googe said he thought that the EDC could make a final presentation to both companies within two weeks.
During Tuesday’s public hearings, Timothy Gainey, pastor of East End Baptist Church in Lexington, spoke in support of the grants. He said that his work as a pastor has allowed him to see first-hand how unemployment is affecting families in the county.
“It seems to be a small price to pay to rebate money that we don’t have now and won’t have if they don’t come,” Gainey said, “so that we can provide jobs for, in this case, 300 of our families that are going to pay taxes and be able to pay their bills and do shopping at our area businesses.”
Barney Hill also spoke in support of the grants, as long as the incentives were in fact paid from the company’s own tax money instead of taxpayer dollars. He also said that the property tax burden in the city and county is double what it should be for any property owner.
“The method you have chosen to provide relief allows you to provide [tax] relief only one taxpayer at a time,” Hill said. “When the house is burning down, it is unwise to dispense water in thimbles.”
County Commissioner Max Walser said that this was another small step toward recovery in Davidson County, and that he thought it was more worthwhile than trying to draw in and keep huge manufacturing centers.
“I really do believe that somewhere down the road, this county’s going to be much better off for having attracted these smaller companies that pay better wages and have better benefits,” Walser said.
On Jan. 12, county commissioners will hold additional public hearings regarding incentives for two more companies, code-named Project Combined and Project G.
Project Combined plans to invest $3 million and create 150 jobs, and Project G plans to invest $1.2 million and create 20 jobs, Googe said. They each would receive an incentive grant of 0.0027 times the company’s investment in a plant, machinery and equipment each year for five years.
Staff Writer Karissa Minn can be reached at 888-3576 or newsdesk@tvilletimes.com.
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