Commissioners Approve Tax Pledge

The Jasper County Commissioners voted unanimously at a called meeting Friday to approve a resolution pledging taxes to the Joint Development Authority.

The action could reduce the amount of taxes paid by Baxalta (formerly Baxter) to the county for the next four years. The county will not pay any money out, it will just reduce the amount the county will receive.

Before the commissioners took the vote, they heard from Andrea Gray, attorney for the JDA, who explained the liability and rebutted some misinformation that has been put out by Mary Patrick and the Taxpayer’s Watchdog Group.

Ms. Gray explained that bonds issued in 2012 are payable only by the company, that the counties involved are under no obligation, ever, to pay back that $1.1 billion. The bonds were discussed at four meetings of the JDA, then at a joint meeting with all the county commissioners and others and also at board meetings for the Board of Education and the Board of Tax Assessors for Walton and Newton Counties. The Bond Validation Hearing was held in open court in Walton County.

In addition, Baxter received a Georgia Environmental Facilities Association (GEFA) loan for a pre-treatment plant on Baxter property. The Newton County Water and Sewer Authority obtained its own GEFA loan to pay for construction of water lines to Baxter.

In addition, Ms. Patrick alleged that the JDA wants the counties to give up all the revenue they would receive from Baxter to pay the Bank of Madison loan. Ms. Gray explained that if the land had sold that they had anticipated selling in December, the counties would not be being asked to sacrifice any revenue. There is still a possibility revenues can come from land sales or other means, but at this time, the counties are agreeing to relinquish a portion of what they would have received to cover the cost of the loan.

The loan to the Bank of Madison is for the parkway leading to the Baxalta plant, without which there would be no plant.

Baxter received numerous tax incentives to locate in Stanton Springs, but will begin paying taxes to the counties involved this year, and that amount will increase each year. When the plant receives FDA approval, expected no later than 2020, the amount paid will increase significantly.

The commissioners asked several questions and reviewed the progress made through the JDA at Stanton Springs, and with the location of Baxter, later Baxalta, Pharmaceutical there. The commissioners wanted to be sure taxpayers were not paying out more money now, even though the long-term return is positive.

After all their concerns were addressed, they voted to sign the resolution.