Sany pitches development authority, seeks break on impact fee from PTC

Dennis Drewyer, speaking on behalf of Sany, the Chinese heavy equipment manufacturer coming to Peachtree City, addressed the Development Authority of Peachtree City (DAPC) Monday night. He was hoping they would give a ringing endorsement to the Peachtree City Council to exempt them from 75 percent of the impact fees for Phase I of their construction, which they are hoping to start June 1.

The DAPC didn’t show their hand and will crunch some numbers before a special called meeting on May 17 where they will announce their decision.

Drewyer’s pitch was that they were following the rules for seeking impact fee exemptions put in place by the city. Due to the extraordinary economic development and employment growth that Sany is expected to bring to the city and because the building will be entirely located in the Peachtree City Industrial Park, Sany can seek a 75 percent reduction in impact fees, which translates to $198,000 of $264,000.

A local impact analysis was run in 2007 by the Fayette County Development Authority on what the Sany project would bring to the city. It was estimated to have a $4.6 million impact, but with Phase I now being estimated at $62 million, Drewyer stated that the new numbers show an impact of over $5 million.

Sany is expected to create jobs as well, with between 150-300 new employees being hired, not including landscapers, contractors or other hires during future phases.

While it may seem like a slam dunk to give a company providing such an impact to the city a break, DAPC chairman Mark Hollums reminded his fellow board members that whatever break the city did give to Sany, if any, by state law they would have to make it up from the general funds. Board member David Conner said the city will have to boil it down to dollars and cents and Hollums agreed.

“They’ll have to decide if they are paying for the privilege of having Sany come to Peachtree City or if it will be profitable for the city to do this,” Hollums stated.

Michael Colapinto, also representing Sany, stated that other fees are ready to be paid and that Sany, which has already graded the land they expect to build on and started laying down roads, hopes to kick off construction June 1.

Drewyer added that it is their hope to get a lot of the heavy work out of the way during the dry summer months. The project is estimated to be completed in 11-12 months.

PTC Observer
PTC Observer's picture
Offline
Joined: 04/23/2007
SPY - math

Got it, thanks

Drawing business to PTC should be a number one priority.

The question is how should government be involved in doing it?

Generally, the less government the better. If we had a tax free zone here we would stand a much better chance of having business locate here. The local economy would improve simply through more tax paying citizens that work here.

Spear Road Guy
Spear Road Guy's picture
Offline
Joined: 07/21/2006
What About The Lost Jobs???

Mayor Logsdon told some of us at the Republican breakfast many months ago that Sany ain't producing as many jobs as they promised. Are they taking that into account??? It sounds like we are getting hosed and that every large business gets a pass while the little guys have to suck it up.

If PTCGOIL is right, they won't be paying taxes either. Who made that deal for us??? Please fire that person NOW!!!

Dondol
Dondol's picture
Offline
Joined: 05/05/2006
Spear Road Guy, about lost Jobs

"If PTCGOIL is right, they won't be paying taxes either. Who made that deal for us???,Please fire that person NOW!!!"
We did last November!

Don Haddix
Don Haddix's picture
Offline
Joined: 08/17/2007
Haddix: Sany

The State gave Sany a sliding scale ten year deferment on taxes, meaning 0% the first year and growing by 10% per year. They also backed a bond for several tens of millions.

The County gave $150,000.00 and PTC gave $50,000.00.

Bottom line is a prior Council approved everything to get them here, including having gated private residences within a compound.

Now, they are asking for us to pay the impact fees for them. This Council has to be convinced we should give another approximate $200,000.00.

We need reasons.

PTC Observer
PTC Observer's picture
Offline
Joined: 04/23/2007
Haddix - math

Check your math, 10% of nothing is still nothing.

Or do you mean 10% per year for 10 years? Then I guess they would be taxed at 90% or 100% in year ten? Don't think they will stick around for that event.

Since the citizens are foregoing the taxes, how much will this be per job created? $1000 per job?

Don Haddix
Don Haddix's picture
Offline
Joined: 08/17/2007
Haddix: Math Observer

That is what I meant. 10% increase per year, as in 0-10-20...100% year 11.

The exact impact numbers are part of what needs calculated. We do not have complete information adjusted for the changes at this time.

Spyglass
Spyglass's picture
Offline
Joined: 01/28/2008
Sany Taxes..

I'm quite sure the way it works is, the first year their bill is ZERO % of what it would have been per the tax man....the second year, it is 10% of the bill and so on for 10 years...

It's fairly common for the State to become involved in projects such as this.

Do a little googling for Pooler, GA and DiamlerChrysler to see one that did not come to fruition.

inkslinger
inkslinger's picture
Offline
Joined: 03/20/2007
Spy-SANY

Head south on 74. See Cooper Industries on the right. Look to your right (or turn right) at the second traffic light for Cooper. Or, on your left, watch for the new security guard shack for the FAA bldg. being built on the left, (I won't mention the coincidence of the heightened security that the FAA feels they need there, SPY) and SANY is going in directly across from the light there behind the Cooper complex.

Cooper Circle is a big U-shape road that goes north to south BEHIND the Cooper bldgs., and SANY is going in on the southwest side of Cooper Circle. You can barely see the land clearing from 74 at the light, that's why it is not noticeable from 74.

Also, go to www.peachtree-city.org, type in SANY in the search field on the home page and you can view all the plans.

inkslinger
inkslinger's picture
Offline
Joined: 03/20/2007
SANY is ALREADY digging......

they already OWN 228 acres off 74 South at Cooper Circle, for crying out loud. They plan on finishing construction of the first phase of the plant in Nov.
Pay attention here, please.

From THEIR web site...."SANY Group has had an annual growth rate of 50% for the last 10 years. despite the impact of global economy recession in 2008 and 2009, SANY Group maintained a 50% annual growth rate & achieved 3 BILLION in sales revenue."
"SANY received $1.2 MILLION from the State of Ga., Fayette County AND Peachtree City to fund land acquisition. Also, officials agreed to a property tax break that incrementally increases from 10% the first year by and additional 10% each year for the next 10 years."

Tell me, when will enough be enough????? You think they are going to walk away from this if little 'ol PTC doesn't say yes to this request??? The NERVE of them to even ASK for it, knowing how badly this city NEEDS this revenue!!! Tell me would you rather see this $198 THOUSAND in our city account or SANY'S???? That amount won't even buy the garden they plan to put in.

This is a HUGE NO from us citizens...GOT IT, SANY????

Spyglass
Spyglass's picture
Offline
Joined: 01/28/2008
Honestly Goil..

I've looked for it on drives down 74....Maybe I should slow down.

I was not aware they had started yet...thanks for the info. From your notes, it would appear they could afford to pay the fees.

Spyglass
Spyglass's picture
Offline
Joined: 01/28/2008
"When can you start digging"?

Fee be damned. Give them the break, the City could use this development. After reading Goils info above, I say we should fine them for wasting City time. :)

grassroots
grassroots's picture
Offline
Joined: 02/17/2009
Impact Fee

You guys shouldn't fee anything at this economic juncture. Just a new 7-11 or pool hall would be welcomed. Your motto should be NO FEES for New Business Welcome. Preserve our residents and trees without FEES!

borntorun
borntorun's picture
Offline
Joined: 11/28/2005
Sany

Why is Sany coming before DAPC with this request? DAPC has no authority to grant such a request. They weren't even involved with the recruitment of Sany to Fayette County....the Fayette County Development Authority was the lead agency in Fayette County. This is the little known secret Donnie Darko doesnt want you to know about. He wants to increase DAPC's funding to some ridiculous amount and the GA Dept of Economic Developement doesn't even recognize DAPC as the contact agency in Fayette County. The Fayette County Development Authority is recognized at the state level as the "go to" agency in Fayette County. What a joke!

Mark Hollums
Mark Hollums's picture
Offline
Joined: 10/11/2007
SANY

About 2 years ago, a task force of citizens and staff was formed to review and update the City's original Impact Fee ordinance at the behest of Council and then Mayor Logsdon. Council also hired an outside expert to advise the task force on the particulars of Georgia law as it related to impact fees.

During the discussions, the task force felt that any special considerations on impact fees should be based on a substantial economic gain for the community and that as a matter of good practice, the application should be reviewed by a citizen-led panel before being presented to Council. It is somewhat akin to a zoning issue being reviewed by the Planning Commission. While Council always has the final decision, the intent was to inject more citizen involvement and sunshine into the process.

The task force's consensus was that DAPC would be the logical choice for these types of developments since it is made up exclusively of Peachtree City taxpayers, who would obviously be somewhat more sensitive to this issue. (I believe the Airport Authority will handle any applications related to Falcon Field.) It was also the Council (under Mayor Logsdon) that discussed and adopted the task force committee's recommendations.

As for the FCDA being the lead agency that the State DCA worked through on the SANY project, you are correct. DAPC (and the Airport Authority) work closely with the FCDA in support of the marketing efforts for the Industrial Park. It is a great team collaboration that we are all working hard to continue fostering for the economic benefit of our community.

inkslinger
inkslinger's picture
Offline
Joined: 03/20/2007
SANY

Anyone know how much Gov. Perdue gave from the state side to lure them here? I know it was a large amount.

Off the top of my head, since we citizens already paid for the former mayor's Big Adventure to China for them, I think we are about even, now, aren't we?

Chinese Proverb: A fool judges people by the presents they give him.