March 27, 2013 - Senate Approves Major Economic Expansion Measure
Will Help Create Jobs at Nissan, Will Protect Taxpayers
By Senator Will Longwitz
FOR IMMEDIATE RELEASE
JACKSON - The Mississippi Senate today passed a bill that will enable the creation of hundreds of new jobs at the Nissan plant in Madison County. The bill would allow the issuance of up to $100 million in "revenue-only" bonds to support expansion at and around the plant. The revenue from the bonds will come from lease payments that Nissan will guarantee, and only the bondholders will be liable for the debt. There is no recourse to Mississippi or Madison County taxpayers.
The bill's principal author, Sen. Will Longwitz (R-Madison) said the bill will help create jobs and will also protect taxpayers. "This a big win for Mississippi. Taxpayers are not liable for any of this debt, but it will create the right conditions for economic expansion and job creation at this facility. This is going to benefit people in Madison County and all over the state.”
The bonds would be sold to private financial institutions, and are not backed by any state or local government. The new buildings will house suppliers that will work on the new lines of vehicles at the Canton plant.
"I appreciate my Senate colleagues' openness to this major economic development bill, and I'm grateful for Lt. Gov. Reeves' support," said Longwitz. "Mississippi is leading the way in job creation and economic growth. I know the House will review this opportunity carefully, and I hope the House will see fit to endorse this huge win for Mississippians."
Revenue-only bonds are often used to facilitate industrial development projects like this. They have been used in Mississippi before, and this is the first project to operate on this scale. With this expansion of facilities at Nissan, it is believed that even more suppliers and businesses will be attracted to the area and to the state.
SB 2920 now heads to the House of Representatives for consideration in committee.