OVERVIEW

The City of Guthrie, Kentucky Cabinet for Economic Development, South Western Kentucky Economic Development Council and Todd County worked together to encourage and incentivize Novelis Inc. to construct a $300 million automotive aluminum sheet manufacturing facility in the Region. The facility created over 125 high paying jobs and provided substantial tax revenue to the City of Guthrie and Todd County. Compass was proud to work with the City and County on a joint financing that funded the initial infrastructure required to jumpstart the project.

FINANCING PLAN

Compass advised both the City and County on a joint financing issued through the Kentucky Association of Counties Finance Corporation financing program. The proceeds of the $6,000,000 bond issue was sold in two phases in 2018 and funded land and infrastructure improvements that were critical to Novelis Inc.’s decision to proceed with the project. Our team helped develop an interlocal agreement and negotiated additional commitments through a grant agreement to further secure the financing by capturing anticipated future tax revenues from the new plant and anticipated job growth. This structure was paramount in providing adequate revenues to support the project while maintaining significant local tax revenue.

PROJECT SCOPE

$300,000,000

SCOPE OF SERVICES

Economic Development
Bond Issuance
Long Term Capital Planning