Jackson residents may be able to take advantage of a new employment opportunity with Continental AG at the company’s new tire plant. Mississippi government recently approved the provision of millions of dollars of state money and tax benefits for Continental AG’s latest venture in Hinds County.
The tire plant will provide 2500 jobs for locals in the area, which according to the Clarion-Ledger, makes this one of the largest developments of its kind in North America. The state also attracted the construction of a shipping operation in the State Port of Gulfport – which can create another 1000 jobs. The two businesses combined will provide over $1.5 billion in private investment for Mississippi.
The announcement was made on Feb. 3, during a special legislative session motioned by Gov. Phil Bryant. According to Bryant, spending on incentives will provide a return-on-investment of about $11 to every dollar.
While the state may be set back $600 million by providing incentives for the businesses, state economists are positive that Mississippi will gain a much more by 2040. The $600 million will be used for bonds, income and franchise tax breaks, property tax breaks, and income tax rebates.
The Continental tire plant will be constructed in the Norell Road Site, which lies on Interstate 20 in between Clinton and Bolton. The company has stated that it has short-listed employees for more than 1000 jobs, which pay an above-average salary of $40,000 a year. State reps are positive about the employment prospect, which they claim will not only be good for the economy, but also for the safety of the community as it would prevent petty crimes.
Some, however, are unsure about the success of the project and have voiced their opposition to the government’s plan of spending taxpayer money to provide incentives for the businesses. The Hinds County Board of Supervisors, the Clinton Board of Alderman, and the Clinton school district are among those who disagree with the government’s decision.
With the government’s approval and the subsequent creation of the two business developments, will taxpayers watch their hard-earned money be lost in an economic opportunity too good to be true? Only time will tell.