Press Room
Land Deal a Boon for Simpson Co.
June 20, 2009
Simpson County public schools stands to gain millions of dollars in property tax revenue from a recent 16th Section land transaction.
On Friday, the school district swapped 99.6 acres of 16th Section land for a one-time payment of $2 million and 373 acres from a company called Earth Station Communication LLC, according to a news release from the secretary of state's office. The land the school district received has about $200,000 in timber on it, according to the release.
The school district cannot legally spend the $2 million, but can spend the interest from the money or borrow against the principal, said Joe Welch, superintendent of the Simpson County School District.
The company stores natural gas in a salt dome on the property, Welch said. The transaction includes an agreement that the facility can be used only for consumer-ready natural gas, he said.
In the first year, the school district expects to receive about $1.5 million in ad valorem taxes from the property, Welch said. That amount is expected to increase to more than $4 million or $5 million in about five years, he said.
Simpson County schools likely will use the additional revenue for things including building projects and reducing class sizes, Welch said.
"It's going to be a great benefit to our school system and to our county," Welch said. "We don't see the need for any millage to have to be added onto the schools in the county for many, many years to come."
During the five years the salt dome is constructed, about 250 to 300 jobs will be created, Welch said. Upon completion of the facility, there will be 30 to 40 full-time jobs, he said.
"We are pleased to work with the Simpson County School Board on this unusual use of 16th Section Land," Secretary of State Delbert Hosemann said in a release. "The school district is getting an overwhelming return for this sale and, in these economic times, we need to make every effort to get the most money back into the hands of our schoolchildren."
