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(The Center Square) — Work on electric car maker Rivian Automotive’s $5 billion plant will move forward as planned despite an ongoing legal battle, officials at Center Square confirmed.
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Grading of the site began in early fall, and the judge’s decision will not affect progress on the development, said Marie Gordon, a spokeswoman for the Georgia Department of Economic Development. to Center Square. However, Gordon deferred to a representative of a public agency to answer more serious questions about the project.
Economic development officials, who have been tight-lipped when discussing or commenting on the projects, say the bonds are “not a loan” by the state or local community.
The GDEcD and the Joint Development Authority of Jasper, Morgan, Newton, and Walton Counties have filed an appeal of Ocmulgee Superior Court Judge Brenda Trammell’s decision to deny a bond for the Rivian project. However, officials wouldn’t say for sure that Georgia taxpayers wouldn’t have to keep the bank going if it goes south.
Earlier this year, the GDEcD and JDA announced a deal to provide $1.5 billion in incentives to Rivian. The company plans to build a plant along Interstate 20 in Morgan and Newton counties.
On July 8, Georgia officials submitted a petition to approve $15 billion in tax credits, which economic development officials planned to use to finance the Rivian project. Seven Morgan County residents later filed motions to defend.
On Sept. 29, Trammell denied bond on the project.
“We are confident in the strength of our proposal and want to see this project come to a solution for the benefit of all Georgians,” they said in a statement.
“The agreement is not one of the strongest that has been taken by the government in general, but it would be wrong to say that the government and the local JDA did not do much before giving incentives, ” they added. “The background work on Rivian is very thorough and includes a review of financial records and an overview to understand the impact of a potential project in Georgia.”
Economists said the debt was solely Rivian’s responsibility. However, they declined to elaborate on what would happen if Rivian files for bankruptcy, referring to Friday’s statement.
“The judge’s decision and decision against Rivian’s money was wrong,” the GDEcD and JDA said in a statement. “What’s more, the decision disregarded Rivian’s significant cash reserves and manufacturing operations at the company’s facility in Normal, Illinois, and the growing market for electric vehicles.”
A spokesman for Gov. Brian Kemp, a Republican, did not respond to a request to confirm that Georgia taxpayers will not foot the bill for the project. Officials previously said the plant would begin production in 2024.
By TA DeFeo | Contributor Center Square
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