KwangSung to expand facilities

County won’t incur anymore cost after extending agreement for company to pay off debt from current facility

By Dale Liesch (Contact) | Alex City Outlook

Published Friday, June 19, 2009

The Tallapoosa County Commission unanimously approved a supplemental project agreement with KwangSung America Thursday to help the auto supplier expand its facilities.

The move extends the terms of an existing agreement between KwangSung and the county to pay off the debt incurred on the supplier’s current facility at the William Thweatt Industrial Park in Dadeville.

The commission also unanimously approved a funding agreement at Thursday’s called meeting that would allow for the county to refund and reissue the current bond agreement with KwangSung in order to extend by two years the terms of the payment plan to the debt service.

County administrator Blake Beck said although the exact amount of the debt service has not been determined, the auto supplier has agreed to take on the additional expense associated with extending the terms of the agreement and the county would not be responsible for any additional debt as a result of the decision.

“There will be no additional debt and no addition costs to the county,” Beck said. “It’s a very good business decision.”

Dave Heinzen from Citizens for Good Government asked the commission to look objectively into the economic impact such a move would have on the local economy in terms of employment and tax revenue before agreeing to support it.

“We are happy that KwangSung has been very successful at the industrial park here,” Heinzen said. “It is important to have some objective measurements of what their opening has brought to Dadeville because we need to know what we’re getting out of this deal.”

Commissioners defended their support of both measures as a way to promote continued success for the Korean auto supplier.

“If you look at the current economic situation, the fact that we have a successful supplier bodes well for the community,” Commissioner T.C. Coley said before the final vote. “I’m in support of working out the terms and conditions of their expansion.”

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