The Troup County Board of Education is expected Thursday to sign off on a memorandum of understanding for bond agreements with two Kia suppliers.
Sewon America Inc., which provides metal stamping for Kia, and Hanil E-Hwa, an interior trim manufacturer, plan to expand their buildings and machinery and equipment at their LaGrange-based sites. The LaGrange Development Authority voted last week to move forward with the memorandum, or MOU, but the school board needs to also sign off on the agreement, since it collects property taxes that would be abated.
The two suppliers’ bonds – Sewon an expected $150 million and Hanil E-Hwa an expected $26.55 million – are results of planned model changes at Kia Motors Manufacturing Georgia, which will require suppliers to invest in new equipment to meet changing demand for parts from the automotive manufacturer. Kia is expected to be issued up to $1.6 billion in bonds from the West Point and Troup County development authorities.
“As Kia continues to invest, suppliers have got to follow along behind Kia, making investments to meet the supplies they have to deliver to Kia,” said LaGrange Development Authority executive director Bobby Carmichael at Monday’s Board of Education caucus meeting.
The planned investments by the two companies include mostly equipment, with Hanil E-Hwa planning to some of the bond money to expand its current plant by 100,000 square feet. Those investments will directly impact the school system, because it adds more taxable property, Carmichael said.
The school system is estimated to receive more than $1.8 million in property taxes from planned investments off the bond from Sewon over 12 years and $656,000 from the Hanil E-Hwa bond investments over 10 years.
The development authority also is expecting to issue a bond on behalf of Caterpillar, possibly by the end of the year, for the company to invest in its LaGrange-based operations. The company is expected to close down its factories in two other states and consolidate in LaGrange, adding 66 positions, Carmichael said.
In other business, the Board of Education on Thursday is expected to:
•Approve a five-year facilities plan for school capital improvements.
•Approve contracting with G3 Services to provide construction management services for an amount not to exceed $47,000, a rate of $85 and hour, for the period of Jan. 1 to Sept. 30, 2013.
•Approve Southern Architects and Engineers and 2WR of Georgia, Inc. as district architects for future renovation, remodeling and new construction for a fee up to the state-limited amount of 6 percent until Dec. 31, 2017.
•Approve Southern Architects and Engineers as the architect of record for the renovation of Rosemont, Ethel Kight, Hillcrest and Hogansville elementary schools.
•Approve 2WR of Georgia, Inc. as architect of record for the Callaway High School Field House project for a fee not to exceed 6 percent of project cost.
•Approve purchasing a Mitsubishi air-conditioning system for $49,543 from Carrier Complete Systems to replace the old boiler system in the small gym at LaGrange High School. School system staff will install the equipment.
•Approve purchasing seven buses from Peach State Trucks for a total $759,651.
•Approve paying $41,468.75 to IT1 Source to renew the Microsoft Office Enrollment for Education Solutions agreement.