On top of Enviva’s nearly $46 million incentive package to create an estimated 97 jobs in Stone County, the company has secured $400 million in industrial revenue bonds backed by the state.
According to documents recently released by the Mississippi Development Authority, Enviva is approved to use the $400 million loan from the state to purchase land and construct one of the largest pellet plants in the world in Stone County.
The agreement was approved on August 23 by the Mississippi Business Finance Corporation board of directors, which oversees bond issuances for the Mississippi Development Bank.
Enviva must repay the $400 million over 30 years, according to MDA.The Bond plant has been projected to have an annual economic impact of $250 million once operational sometime in the next two to three years.
Included in the $46 million incentive package, Enviva has secured $4 million in state grants and another pledge from the county to cover water infrastructure.
The county has applied for multiple grants to cover the costs of constructing a $3.5 million water tank, well, and water lines, which will connect to the City of Wiggins’ water system.
The rest of Enviva’s deal is in rebates and tax advantages, but the chief cuts come from local tax dollars.
From the state, Enviva has secured a $250,000 jobs tax credit over 10 years; $87,500 in manufacturing investment tax credits; $1 million cash rebate to the company for job creation; and nearly $8 million in tax breaks for new equipment and buildings.
The state breaks are valued at nearly $9 million.
Locally, Enviva’s tax break adds up to $28.7 million over 10 years, according to MDA records.
Enviva is still slated to become the largest taxpayer in Stone County once operational. The company will pay $1.4 million in property taxes over the next 10 years, representing a slash of about half its tax bill from the county.
Other developments within the company have left some locals wondering if the plan will still go through.
A short seller report from Blue Orca has spawned SEC violation investigations against the company, alleging executives are hiding deficits from investors, among other charges company leadership denies.
If SEC violations are found, would that delay taxpayer funding to Enviva’s plant?
MBFC Board President Bill Sones, Sr, said he could not answer if the revenue bonds would be put on hold while an investigation is completed because that situation was not considered when the Mississippi Development Bank approves bond issuances.