ATLANTA — The state government Monday announced that it joined with Rivian and the four-county Joint Development Authority (JDA) to sign an Economic Development Agreement to guide construction of the company’s $5 billion electric vehicle production facility.

The JDA of Jasper, Morgan, Newton and Walton Counties approved the agreement April 26.

As part of the announcement, the state also disclosed it created a $1.5 billion total incentive package to lure Rivian to Georgia and its planned Stanton Springs North site in Social Circle and unincorporated Walton and Morgan counties. 

Rivian has said it will create 7,500 jobs with an average wage of $56,000 at its facility which will include electric vehicle production, research and training. 

The company also released an updated rendering and site plan Monday.

Still, Rivian opponent Edwin Snell said he wants elected officials to disclose how the deal unfolded to convince Rivian to build the facility in Walton and Morgan counties.

He also wanted opponents to form a human chain in front of bulldozers preparing the 2,000-acre site for construction of the plant.

“Can’t be trespassing…it’s owned by us now…GA taxpayers,” Snell wrote.

On the other hand, Georgia Department of Economic Development Commissioner Pat Wilson said Rivian was a “historic win for Georgia, not only putting our great state at the forefront of the electric vehicle revolution, but also a significant win for the four-county JDA.”

“Rivian will not only employ thousands of Georgians with well-paying jobs of the future, but they will be a welcome new addition to Georgia’s business community,” Wilson said.

The incentive package includes state discretionary funding, tax credits and local incentives, the state disclosed Monday.

Wilson said the state’s financial incentives are “consistent with previous major corporate investments, such as those made by Kia Motors and SK Innovation.”

“It’s incredible that because our state’s economy is doing so well in the current economic environment, we are able to reinvest in future projects funded out of the General Assembly,” he said.

“We understand the impact this project has on our state budget, and we’re proud to have the support of our partners in the Georgia General Assembly and our sister agencies,” Wilson said.

State officials also said the incentives would help generate an estimated $7.3 billion return that includes direct and indirect economic effects and related labor income when the plant reaches full employment of 7,500.

They also said an additional 7,978 indirect jobs will result from the Rivian project, giving a total of more than 15,000 jobs generating more than $1 billion annually related to the plant, according to an economic impact analysis conducted in 2021 by IMPLAN.

About 25% of the total incentives package will be in the form of state incentives “which are expected to be claimed and are available to any eligible taxpayer who meets the statutory requirements.”

Part of the estimated spending was for “speed-to-market solutions” to meet the company’s tight timeline of seeking to begin production this year — and helped close the deal for the state, a news release stated. 

“These include general site improvements such as wetlands mitigation, providing a 500-acre pad that is ready for development, and road improvements,” the release stated.

Rivian will begin making payments in lieu of taxes (PILOTs) of $1.5 million annually to the JDA beginning in 2023.

If the company does not employ at least 6,000 of its planned 7,500 workers by the end of 2028 then it will be required to pay more, said JDA attorney Andrea Gray.

Gray said local governments now receive $80,000 in property tax revenues from owners of Rivian's 2,000-acre site.  After the agreement kicks in, $1.5 million will be shared annually among local governments from 2023 to 2028 before rising to $12 million in 2029. 

JDA member Steve Jordan said the combined PILOT and property tax payments from all companies — including Rivian, Takeda Pharmaceuticals and Facebook/Meta — in the two business parks will total $4.6 million annually through 2028 and rise to $30 million in 2029.

If Rivian invests more than $5 billion in the project then PILOT payments will increase as well, officials said. .

With the addition of Rivian, local PILOTs and tax revenues generated from Stanton Springs and Stanton Springs North are estimated to total more than $900 million over the next 25 years. 

The majority of the tax revenues from the two business parks will go to public school districts in the four counties, which will receive 60% and governments the rest.

JDA officials said such a PILOT agreement with a private company was "unique for a development of this scale" because PILOT payments generally do not begin for at least three years. 

Gray said the JDA issued $15 billion in industrial development revenue bonds which will be repaid through rent payments from Rivian for its use of the JDA-owned site.

Wilson said the state and JDA “have placed a priority on being as transparent as possible throughout this process, while honoring necessary confidentiality agreements.” 

“We have also taken care to protect our interests through the use of clawbacks in the extremely unlikely event of company goals not being met in the timeline offered,” he said.

The agreement requires Rivian to comply with a 25-year “claw back” period requiring the company to have 7,500 jobs and make $5 billion in capital investment by the end of 2028 and maintain those amounts through 2047. 

For each year from 2029 through 2047 that Rivian’s combined job and investment performance is below 80% of jobs and investment numbers, the company will be required to make a pro-rata repayment of the total JDA property, state property and state land improvements, and estimated real and personal property tax savings.

Previous major projects such as Kia Motors, Takeda (formerly Baxter), and SK Innovation, were similarly structured, with discretionary incentives focused on speed-to-market solutions. 

These discretionary funds account for less than a quarter of the projected total package value and include the construction of a new Technical College training center and customized workforce training program through the No. 1 ranked Georgia Quick Start to provide workforce training for Georgians, the release stated.

The Georgia General Assembly set aside $112.6 million for land acquisition, land improvements, and other site improvement costs in Georgia’s 2022 and 2023 budgets.

The Assembly also budgeted for the construction of a new I-20 interchange in Morgan County for infrastructure improvements, the release stated. 

The JDA currently is working to gain required regulatory approvals for the site — which will be taken over by the state government and leased to Rivian. 

A Morgan County Board of Tax Assessors meeting is set for May 11 to consider affirming the tax-exempt status of the land

State officials, meanwhile, created a series of committees designed to gain community input and recommendations for making sure the facility meets environmental and other requirements set by local, state and federal governments.