A deal finalized with local officials this week positions Chatham County’s largest greenhouse gas polluter – and source of the city’s infamous sulfur smell – to significantly increase production at its Savannah-area facilities.
The Savannah Economic Development Authority (SEDA) on Tuesday approved issuing $130 million in bonds to “finance the costs of certain machinery, equipment and other personal property” at International Paper Company’s Savannah and Port Wentworth mills.
The Chatham County Board of Commissioners signed off on the deal late last year.
The company will avoid being taxed on the expansion-related additions in exchange for a commitment to repay the bonds within a decade at 7% interest and add at least 400 jobs between the two facilities.
Under the “abatement” arrangement, SEDA, a tax-exempt public agency, will initially own the new property.
In Savannah, International Paper’s production process also is the source of the sulfur smell that for many residents and visitors is as synonymous with the city as its signature oak-lined squares.