Here’s how SC plans to pay the $1.3B in incentives it offered EV-maker Scout
Scout Motors and the S.C. Department of Commerce are closer to receiving the $1.3 billion incentive package planned to help the electric vehicle manufacturer open a $2 billion plant in the Midlands.
A panel of state House budget writers Tuesday approved a spending about $1.3 billion out of existing surplus money and projected surplus cash expected to come in to go toward the planned Blythewood project, which is expected to bring 4,000 jobs to the Midlands.
About $1.2 billion will come from previous budget surpluses, and about $86.2 million will come from surplus money expected to come in this year, under the plan.
This plan will keep the state from needing to borrow the money for the project.
The Department of Commerce promised Scout the state would spend $1.3 billion for a package that includes construction of a railway bridge over Interstate 77 to the Blythewood industrial park site, building a new I-77 interchange to serve the eventual factory, additional road improvements, electrical work, water and sewer infrastructure.
The $1.3 billion package includes $25 million to build a publicly owned Midlands Technical College training center for employment with Scout Motors and $16 million to buy property to connect to a Class I railroad.
Scout Motors, which is a subsidiary of Volkswagen, also is slated to receive a $400 million grant from the state to help with construction of its facility and a $200 million loan for soil stabilization.
“We’re doing this to really secure jobs for the future, for our children and our grandchildren,” said state Commerce Secretary Harry Lightsey.
The incentive package is subject to approval by the Legislature.
Lawmakers started that process Tuesday, as a House Ways and Means panel gave first approval to Commerce’s plan. They full Ways and Means Committee is scheduled to discuss the plan Wednesday.
Volkswagen has promised to pay back up to $800 million to the state if it doesn’t meet certain goals, Lightsey said.
Lightsey conceded the amount he requested is “a lot of money.”
“We think the commitment of the largest automobile manufacturer in the world and the seventh-largest company in the world to making this project a success is a commitment that we can take to the bank for our state,” Lightsey said.
Lightsey said the average hourly employee at the plant is expected to earn about $58,000. The average salaried worker will earn about $100,000.
Economists estimate the construction of the plant and the operation itself will have a $15 billion economic impact on South Carolina’s economy by 2029.
House Ways and Means Chairman Bruce Bannister, R-Greenville, called the Scout project a win for the Midlands, saying BMW’s facility has been an economic boon for Spartanburg and nearby counties.
“It was awesome,” Bannister said. “So I know that’ll be a great thing for Blythewood and Richland County.”
