The Effingham County Industrial Development Authority has decided against hiring an outside consultant to vet the capability of Moon River Studios to deliver what it promises.
At a workshop on Oct. 16, board member Dick Knowlton said the board has a responsibility to taxpayers to make sure the deal to build movie studios on the IDA’s 1,600 acres at Old River Road and Interstate 16 is solid.
“We sat at this table, and we wanted the great dream to happen,” he said, referring to the earlier deal when the company was known as Medient.
The original plan called for 1,000 jobs and included such features as a bridge over wetlands, solar trees and a glass “leaf” over an outdoor pavilion.
“We believed it would happen,” Knowlton said. “It’s our responsibility to the taxpayers and the community to not do that again.”
Chairman Dennis Webb asked Knowlton if he was asking for an auditor to vet the company. “Whoever is the right person,” Knowlton replied.
He said he didn’t mean to be antagonistic. He said he wants someone to say, “I’ve checked them out. They are who they say they are, and they have the capability to do what they say and go far beyond.”
Moon River CEO Jake Shapiro said the deal is being structured so the IDA will lose nothing if his company fails.
The IDA has agreed to spend up to $1.25 million on a road into the property, an investment board member Chap Bennett said it would need to make for any company.
If the company fails, Bennett said, the IDA would still have the road.
“It’s really not money that we hadn’t expected to spend anyway,” he said.
Later, only after the jobs have been created, the IDA would spend up to $3 million for water and sewer at the site.
Webb noted that the average pay rate for the 527 jobs that Moon River is planning, at $46,000, is higher than the $39,000 promised for the 1,000 jobs that the company planned before.
Bond attorneys are trying to figure out a way to structure the deal so Moon River can leverage the land to obtain a construction loan while still protecting the IDA’s interests.
Webb said the general consensus is that a work-around is possible.
Shapiro said the master plan must be approved before the company can secure permanent financing.
“I’d hate to see the momentum slow down,” he said.
BREAKOUT
The Effingham Industrial Development Authority will meet at 6 p.m. Thursday. The agenda includes consideration of a revised master plan and development schedule and a supplemental agreement with Moon River.