SCDA Approves Inducement Resolution

The Stephens County Development Authority takes a step to try to encourage an unnamed company to invest in the county.

At a called meeting Wednesday, the Development Authority board unanimously approved an inducement resolution for industrial revenue bonds not to exceed $10 million in connection to something called “Project Sark.”

Development Authority officials said “Project Sark” is a company that is considering investing in Stephens County that wishes to remain anonymous at this time.

Stephens County Development Authority Executive Director Tim Martin said this inducement resolution does not obligate the authority or the county to anything financially or otherwise.

He said it is a tool provided to companies considering investments that allows them to take advantage of certain opportunities and benefits that they would not be able to without it.

“The IRS recognizes investments through this process for favorable consideration,” said Martin. “If they borrow money using this tool, typically speaking, they would borrow money at a cheaper interest rate. That is a benefit they can achieve because of our action. It does not obligate us to anything.”

Martin said that the Development Authority and “Project Sark” have had serious negotiations regarding this possible investment.

“We have met with this company,” said Martin. “We like their plan. We would like to encourage them to do it in Stephens County, thus our action.”

There is no specific timeline for any decisions or announcements, but Martin said an inducement resolution is usually valid for a period of 12 months or so.

He added similar inducement resolutions have been done for other companies in the past.