Development authority to issue bonds for hospital, offer tax abatements to IVC

Published 11:24 am Tuesday, November 28, 2017

This is an artist's rendering of the entry view of the Peeples Cancer Institute to be built in Dalton.

DALTON, Ga. — Hamilton Health Care System’s expansion plans could take a step forward in early December when the Dalton-Whitfield Joint Development Authority (JDA) asks a Superior Court judge to certify the issuance of $95 million in bonds for Hamilton.

Jeff Myers, president and CEO of Hamilton Health Care System, said the bonds will be used to finance several projects.

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“The projects include the new cancer center and the parking structure for that,” he said.

Hamilton broke ground on the 59,925-square-foot Peeples Cancer Institute in September. When it opens in the spring of 2019 it will bring together radiation oncology, outpatient infusion and breast and diagnostic imaging services, which are now spread across Hamilton’s campus.

Myers says the bonds will also finance a “separate parking structure on what we call Lot 1, which is the main employee parking area. In addition, we are building a new endoscopy lab.” The bonds will also be used to fund “routine capital” spending.

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Myers said neither the city of Dalton nor Whitfield County has any liability for the bonds and Hamilton will repay them.

In addition, JDA Executive Director Carl Campbell says the agency will ask a judge to approve a $150 million bonds-for-title agreement with IVC U.S, which was bought by Mohawk Industries in 2015 for more than $1.2 billion, for additional machinery for the company’s luxury vinyl tile (LVT) manufacturing facility in Whitfield County.

“That’s in addition to the $100 million investment they announced last year,” he said.

Company officials said that $100 million investment would create 200 jobs. But Campbell said he doesn’t think this latest round of investment will add significantly to that number.

“Unfortunately, factories are becoming more automated, with more machinery and fewer jobs,” he said.

Whitfield County Attorney Robert Smalley, who is also the attorney for the JDA, says no bonds will actually be issued, but rather the agreement allows the company to qualify for tax abatements of up to $150 million on the equipment.

Dalton and Whitfield County offer property tax abatements based on a matrix developed by the JDA that takes into account factors such as investment, the number of jobs a project creates and the average salary of those jobs.

IVC opened its U.S. headquarters, a distribution facility and a manufacturing plant on the South Bypass in 2011. In 2014, IVC officials broke ground on a $100 million luxury vinyl plank and tile plant at the same site.

The Whitfield County Board of Commissioners paid $1.28 million in 2010 for the 44-acre site, which they turned over to IVC to develop.