A complicated land deal was officially closed Nov. 9 by Rivian, a startup electric vehicle company, to give it access to an 1,800-acre megasite an hour east of Atlanta and allow the automaker to soon begin vertical construction on its planned $5 billion factory.
The Joint Development Authority of Jasper, Morgan, Newton and Walton counties (JDA) approved multiple resolutions earlier in November to finalize the lease agreement, issue bonds related to the project's property tax financing, and prepare to turn over the site to the California-based upstart, according to the Atlanta Journal-Constitution.
The authority owns the site within the Stanton Springs industrial park but will rent it to Rivian for 50 years for its planned 16 million-sq.-ft. EV plant.
The closing is a milestone for Georgia's second-largest economic development project, which is poised to cement the Peach State as a national leader for EV manufacturing and battery production.
"It's a great day in Georgia as we close and issue the bonds for the Rivian project," the JDA and Georgia Department of Economic Development (GDEcD) said in a joint statement. "Rivian is the next step in delivering this generational opportunity, and Georgians in Jasper, Morgan, Newton and Walton counties and beyond look forward to $5 billion in investment and 7,500 good-paying jobs that this innovative, American manufacturing company will bring."
In Georgia, local development authorities offer tax breaks via so-called "bond-for-title" transactions. In Rivian's case, the JDA will hold title to the factory property and Rivian will lease it back. As the JDA is a government entity that does not pay property taxes, the JDA would pass along some $700 million in property tax savings to Rivian through 2047. The Journal-Constitution noted that bonds central to that agreement were issued immediately after the closing was complete.
"Today's action represents a significant milestone that has been achieved after years of thoughtful planning, hard work, and dedication by the JDA to bring life-changing opportunities to the people of this community," JDA officials said in a statement. "The JDA is thrilled to see this historic opportunity now become a tangible reality that will provide numerous benefits to our citizens for decades to come."
Because of legal battles and a delayed timeline, several agreements between the state, JDA and Rivian had to be amended and tweaked. In addition, the Authority slightly reduced the number of acres it will lease to Rivian to carve out a frontage road and a planned state training facility for future Rivian employees. The final lease is for about 1,744 acres, roughly a 200-acre reduction from earlier proposals.
Grading work on the site will continue through the end of 2023, and Rivian is expected to soon begin vertical construction. A ceremonial groundbreaking ceremony will take place early next year, according to company spokespeople.
Proposed Rivian Plant to Produce R2 Crossover by 2026
The forthcoming factory, which will eventually employ 7,500 workers at an average annual salary of $56,000, will produce the company's R2 crossover when its Georgia assembly lines come online in 2026. Rivian executives said the new vehicle model, crucial to expanding the startup's customer base, will be sold at a lower price than Rivian's flagship R1T truck and R1S SUV.
The Atlanta news source said that the automaker reported increased revenue during this year's third quarter and increased its annual production goal. Cox Enterprises, the owner of the Journal-Constitution, also owns about a 4 percent stake in Rivian.
Rivian CEO R.J. Scaringe told shareholders Nov. 7 that he expects the Georgia facility to adopt strategies implemented at the company's first manufacturing facility in Normal, Ill., to more quickly ramp up production.
"Our team will apply this experience to our new manufacturing facility in Georgia with the goal of achieving a considerably lower cost structure," he said.
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