By: Caleb McCluskey and Dennis Seid
Source: Northeast Mississippi Daily Journal, Tupelo (TNS)
In what is being hailed as a “transformational project,” an international manufacturer will invest $176 million and create at least 180 jobs by 2026 in the HIVE Business Park.
The Liebherr Group, one of the largest manufacturers of construction equipment in the world, will build a 1-million-square-foot distribution and manufacturing operation inside the Lee County-based industrial park. The first phase of the project, which will occupy 118 acres, will see the construction of a state-of-the-art spare parts logistics center. Potentially, the Swiss company could invest nearly $240 million and create up to 342 jobs to support its new operations.
“It’s the culmination of about nine months of work,” said Community Development Foundation President and CEO David Rumbarger, who made the announcement before the Lee County Board of Supervisors meeting on Tuesday morning. Tupelo Mayor Todd Jordan and Chief Operating Officer Don Lewis also attended. “We started this project back in November with our first visit, where we were screened with over 400 cities, evaluated with about 40, then site selection was down to about 10 cities they looked at across the South.”
After a decade of preparation and courting businesses, this is the first major project to commit to the HIVE since the county acquired the 475-acre space south of Tupelo. With the company occupying 118 acres, that leaves 357 acres for further development.
Rumbarger said this was the first of many businesses to locate in the industrial park, noting that Liebherr’s establishment in Lee County will likely bring more industry to support it.
Liebherr-Logistics GmbH, which will oversee the operations, provides logistics services for earthmoving machinery, components, concrete technology, tower cranes and maritime cranes.
Liebherr said the new logistics distribution center for spare parts will serve its customers in South and North America. The company said it intends to establish a campus on the site, where various business units from different product segments of the company will operate in the future.
The family-run technology company comprises more than 150 companies in over 50 countries, and it currently employs more than 53,000 employees worldwide and over 1,600 in the U.S.
“The continental warehouse of Liebherr-Logistics GmbH will handle logistics and service operations, such as warehousing, distribution, value-added services — pre-assembly, kitting, repackaging − as well as customs and export services,” the company said on its website.
“This project is transformational,” Rumbarger said. “It establishes just exactly what you envisioned in the HIVE Business Park — an advanced manufacturer, advanced technology, highly compensated for those individuals who will be there. It will become a premier employer for this region.”
Cooperation between the county and city was key to the project, as it has been in many other economic development projects through the years. Here, while the HIVE Business Park sits on land purchased and developed by Lee County, the city of Tupelo will provide utilities to the site.
“It’s truly a joint effort,” Rumbarger said.
The Lee County Board of Supervisors voted unanimously on Tuesday to approve multiple measures: a Regional Economic Development Act agreement between the county, Liebherr, the city of Tupelo and the Tupelo Public School District, and a tax increment finance plan of up to $5.5 million in investment to be paid through Ad Valorem taxes generated by the project.
“This is a big deal. It just goes to show you, it credits the people of Lee County. We’ve got the hardest workers and the best skill sets around,” District 3 Supervisor and Board President Wesley Webb said. “When you’ve got a team as good as CDF … It isn’t luck, it’s skill.”
A tax increment finance plan is a tool used by the government to reward economic development. Chancery Court Clerk Bill Benson said whatever the company puts into developing their project will come back though tax subsidies up to the $5.5 million.
Alongside the agreement and tax incentive, the board also voted unanimously to approve a measure to advertise for utility extensions at the HIVE, authorized County Administrator Ronnie Bell, Benson and CDF Executive Vice President Jon Milstead to grade the proposals and authorized Bell to advertise for engineering proposals for a road intersection safety project at the HIVE.
This comes after the county approved a $707,796 contract with Corinth-based Pittman Construction Co., Inc. for constructing an access road to the industrial park in April of this year.
Last year, the county snagged $10.5 million in general obligation bonds to bolster Lee County’s industrial development for its three industrial parks. Part of that bond issue included relocating a VHF omnidirectional range station at the HIVE. Benson said the project is progressing, but it is in conjunction with the Federal Aviation Administration. He added the station will not affect the development of Liebherr’s facilities.
The Mississippi Development Authority is providing assistance through the Mississippi Flexible Tax Incentive, or MFLEX, value at nearly $13.5 million. In addition, MDA is providing a $5 million loan to assist with construction and equipping the new facility.
Accelerate MS also is assisting with the project.
(c)2024 the Northeast Mississippi Daily Journal (Tupelo, Miss.) Visit the Northeast Mississippi Daily Journal (Tupelo, Miss.) at www.djournal.com. Distributed by Tribune Content Agency, LLC.
