Nissan Expansion Bill Gets Legislative Final Approval Private Financing Will Help Create 800 – 1,000 New Jobs

JACKSON – The Mississippi House gave its final approval today to a bill that will help create 800-1,000 new jobs at the Nissan plant in Madison County. The bill had been held on a motion to reconsider. It now goes to Gov. Phil Bryant for his consideration.

The bill’s principal author, Sen. Will Longwitz (R-Madison) said the bill will help create jobs and will also protect taxpayers. “I’m very grateful for this victory for Mississippi. With another expansion at Nissan, we are leading the way in job creation and economic recovery.”

“It’s private financing for a private sector expansion, and it uses revenue bonds as a vehicle for doing it. Taxpayers aren’t liable for this debt, and it will lead to economic expansion and job creation,” said Longwitz.

The bill will allow the issuance of up to $100 million in “revenue-only” bonds to support expansion at and around the plant. The bonds will finance construction, and Nissan’s guaranteed lease payments will pay the bondholders. Bondholders have no recourse to Mississippi or Madison County taxpayers. The new buildings will house suppliers that will work on the new lines of vehicles at the Canton plant.

“I appreciate my colleagues’ support for this major economic development bill, and I thank Speaker Philip Gunn and Lt. Gov. Reeves for their support. This was the result a lot of hard work that will help Madison County and the whole state,” said Longwitz.

Revenue-only bonds are often used to facilitate industrial development projects like this one. They have been used in Mississippi before, and this is the first project to operate on this scale. With this expansion of facilities at Nissan, it is believed that even more suppliers and businesses will be attracted to the area and to the state.

Sen. Will Longwitz
4/1/13