HANCOCK COUNTY, W.Va. ( WTRF ) – Hancock County Commissioners approved a PILOT Tax Program for Nucor Steel on Thursday during their regularly scheduled commission meeting, meaning the company will not pay regular taxes to the county for the next 30 years.
In a two-to-one vote, commissioners Jeff Davis and Paul Cowey voiced their opinions on approval. Commissioner Eron Chek voted no on the agreement.
“Nucor Steel and Hancock County came to an agreement (a payment in lieu of taxes) to accept a payment plan for any development they may do on the property they purchased. The payment is based on the cost of the project, which can vary. The more they spend, the more they pay to the county.”
Jeff Davis | Hancock County Commissioner President
Nucor Steel purchased property south of the Mountaineer Racetrack, between New Cumberland and Newell.
Davis says this agreement has been in the work for months, and the West Virginia Economic Development Administration (EDA) backs this project 100%. Davis says, “The economic development office wants this project in Hancock County.”
When Nucor Steel makes payments, they will be divided like all other tax dollars paid to the county.
Nucor Steel is building a $3.1 billion dollar facility in Mason County , which will then ship products to the Hancock County facility.
“The Nucor facility in Hancock will be used for transportation. Items will be shipped mostly by barge, processed here in the northern panhandle, and then shipped back by barge or road.”
Jeff Davis | Hancock County Commissioner President
Davis says, “We anticipate spin off businesses from this company, based on what Nucor has told us. Potentially other processing companies who want to work with Nucor to further develop that land.”
The 30-year aspect of this agreement has sparked some debate.
“The 30-year period does bother us. We’ve never done anything that long, and we tried negotiating a shorter item period – they wouldn’t budge from that.”
Paul Cowey | Hancock County Commissioner
Chek provided a statement to 7News regarding why she voted no to the agreement. It says in part:
“The NUCOR site in Hancock County is valuable to them, they will use that site to pull coils from barges and put them on our roads to send them out all over the northeastern part of the continent. They will not pay taxes on the inventory they transport through the site, and they won’t tell us how many jobs they will create. I want to remind people that Cleveland Cliffs has paid over $3 million in taxes, the tax on the currently owned raw land purchased by NUCOR is $75,000 according to the $12,000,000.00 purchase price. I have a hunch they could afford their tax bill; 30 years is too long to be exempt.”
Eron Chek | Hancock County Commissioner
Both Davis and Cowey tell 7News the WV EDA is responsible for “making things happen” within any given county in the state.
“By voting for this yesterday, we showed them we are a team player, and we want them here. There are a lot of opportunities here in Hancock County.”
Jeff Davis | Hancock County Commissioner President
If commissioners did not come to an agreement or approve Nucor’s proposal, WV EDA could still go around county officials and go forward with the project regardless, according to Cowey.
“Biggest thing is, if we don’t do it, if we don’t accept a pilot, the state could go around us, and we won’t get a penny and they still will be able to do it.”
Paul Cowey | Hancock County Commissioner
In another section of Chek’s statement, she talks about how this agreement undervalues the resources offered in Hancock County.
“Thinking about our Value Hancock is the smallest county in West Virginia. 88 square miles precisely, why are we giving the farm away for free? The EDA of WV offered NUCOR (and the commission approved 2-1) a 30-year tax free lease for an unlimited amount of our land treating it like it has no value, and not understanding the effects of the economic strategy of our county. Other businesses pay full ticket price, I know many people who pay more taxes for their home compared to the tax bill that NUCOR will pay according to this agreement. How will citizens ever see tax cuts when businesses have 30-year tax free leases with the state? With only 88 square miles to work with, we need to be smart and strategic when approving these deals that are negotiated 200 miles away from here. What we have to offer is river transportation, water, beautiful land rich with natural resources, and safe communities. By exempting it from taxes, we are saying ‘We don’t think we have much to offer, so please come, make yourself at home. Also, no need to contribute to the resources that keep our communities safe, our volunteers and response teams will pay their taxes, so you don’t have to.’”
Eron Chek | Hancock County Commissioner
Davis tells 7News, “I’ve lived here my whole life, and that property has never been used. You get nowhere if you don’t take chances. Nothing happens with no action. I believe in taking chances. This is the right thing to do.”
“The main thing is, we are happy about the development coming to the north end of the panhandle. We might not all be happy with the amount we are getting, but it’s all about the jobs. We want to see jobs in this area. Especially, after the idling of Cleveland Cliffs. It’s important to keep the development up here.”
Paul Cowey | Hancock County Commissioner
Commissioners say there is currently no timeline for when Nucor will break ground on their facility in Hancock County.
Stay with 7News as we learn more details.
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