IP looks to Warren County for help with growth|[6/16/06]
Published 12:00 am Friday, June 16, 2006
Expansion and new equipment are planned for the International Paper Company mill at Redwood.
“We have over 300 people working at IP,” said Stephanie Picard, plant manager. The company sought approval of $20 million in industrial revenue bonds from the Warren County Board of Supervisors on Thursday. “This shows them we are dedicated to this mill and it ensures the long-term operation of the mill.”
Jackson attorney Robert Lazarus said made the presentation and said IP plans to use the money for capital improvements.
“Warren County is just a conduit,” he said. “Know that you’re not putting any additional burden on taxpayers.”
Supervisors were expected to take action on the request Monday.
In 2005, International Paper announced a reduction in size from 26 mills to 14, but elimination of only five jobs at the mill on Mississippi 3, built in the 1960s.
The plant, which makes corrugated linerboard such as that used in cardboard boxes, has had periodic shutdowns for weeks at a time to allow world demand to catch up with supply, but has remained stable otherwise.
Supervisors have unanimously agreed to be a funding conduit for past IP expansions. There is no allocation of public funds and no payback by local taxpayers. Supervisors are expected to pass two resolutions – a Certificate of Public Convenience and Necessity and assistance agreement – and the Mississippi Development Authority is expected to sign off on the deal. Bonds must be issued by Dec. 31, 2007.
Some of the equipment to be repaired or replaced includes boilers, tanks, roads and rails, water systems and electrical stations.
Tax advantages factor prominently in the issuance of Gulf Opportunity Zone Act bonds, Lazarus said. International Paper is seeking sales- use- and ad valorem tax exemptions for 10 years, not including ad valorem taxes levied for the Vicksburg Warren School District. Those have also been routinely approved for past expansions and upgrades.
The Gulf Opportunity Zone Act of 2005 provides federal tax incentives to areas affected by Hurricanes Katrina, Rita and Wilma, including timber growers and processors. For example, for many business purchases of supplies equipment, there is an extra 50 percent to claim as a depreciation deduction.
Other incentives offered aimed at businesses include: