WINFIELD, W.Va. -- Putnam County commissioners on Tuesday approved creation of the tax-increment-financing district that will encompass the Putnam County Business Park in Frazier's Bottom.
According to John Stump, an attorney for Steptoe & Johnson handling the TIF project, the TIF district plans have been approved by the state Development Office, and were scaled down from original projections to exclude landowners who opted out of being part of the district.
"The whole idea was to create the TIF within the Putnam Business Park to pay for the infrastructure out there, plus expand it out to anyone who needs it out there," said Commissioner Steve Andes.
Instead of using existing TIF funds to support the initial park project, the county plans to use TIF funds to borrow money at a low level of interest from a state agency. Tax-increment financing allows government entities to fund economic development projects using the projected increase in property taxes that occurs because of the improvements to the district.
The development authority partnered with the West Virginia Infrastructure and Jobs Development Council on the project, and Stump said the funding of the business park TIF district is "unprecedented" in the state.
"To my knowledge, it's never been done, at least in this fashion," he said.
Chapmanville-based Ludowici Innovative purchased 11 acres of the business park last year. Its parent company, Ludowici Minerals Processing Equipment Company, is a global mineral processing company based in Australia. The company produces mining, quarry, infrastructure, industrial and water equipment.