AIKEN --- The Aiken County Council voted Tuesday to fund a $1 million incentive bond for MTU Detroit Diesel internally, doubling the return on the bond and saving the company more than $80,000.
The council voted unanimously to issue the bond to the engine manufacturer, using funds from the sale of the Mattie C. Hall Nursing Home. County Administrator Clay Killian said he expects MTU to pay back the bond in five years.
The county had originally planned to offer the incentives using special source revenue bonds. Using outside investors would have raised the interest rates for the company, Killian said.
The rate will be based on prime with a floor of 2 percent and ceiling of 7 percent, he said. The county will make more from the sale of the bond by reducing costs on issuance and legal counsel.
"This has some tremendous advantages for us and the company," Councilman Gary Bunker said.
The company plans to invest $45 million and provide 250 jobs with a plant at the old SKF building in Graniteville.
Killian also announced that as of 5 p.m. Tuesday, the water system deal involving Valley Public Service Authority, the county and Avondale Mills had closed. All paperwork was signed, and the state Department of Health and Environmental Control signed off on releasing $3 million in stimulus funds to the county.
The funds will be used to rehab the sewer system for water customers in Graniteville and Vaucluse. Once the county rehabs the system, Valley Public will take it over.
In other business, the county voted to lift a hiring freeze to fill four positions: a library clerk, drug court coordinator, records clerk and legal secretary.
Council members approved a resolution supporting Henna Chevrolet Cadillac, which could lose its franchise because of General Motors' financial problems. Councilman Scott Singer said owners will go into arbitration in hopes of keeping the franchise in Aiken.
The council also recognized Clarence Raiford for his 49 years as a math teacher in the county. He worked at Schofield Middle and Aiken High schools.
Councilman Willar Hightower read a letter written to Raiford noting that in his career he had influenced 25 black male students to become teachers.
"This is a great honor for me," Raiford said. "I never cared about publicity. My philosophy has always been let my work speak for me."
The Augusta Chronicle ©2012. All Rights Reserved.
