The Liberty County Development Authority is about to put a new incentives package into play.

Authority members approved the incentives, which include standards for job creation and investment to be applied to property tax abatements, at their meeting Monday. They also will revisit the policy next month to discuss the potential for bonds to be required in incentives packages.

“Having a well-researched, thoughtfully designed incentives policy is a critical part of any strategic economic development plan,” said LCDA CEO Brynn Grant. “It provides transparency on the process and clarity on the strategic direction for community leaders and stakeholders as well as businesses considering investment. It makes the work of an economic development team more efficient without sacrificing creativity when it’s needed. It helps us prioritize businesses and jobs that offer the greatest value to the community.”

The authority had been working for months on the incentives package with Boyette Strategic Advisors. It also had been working with the firm on a strategic plan.

“You are competitive with your main competition,” said Dale Boyette of Boyette Strategic Advisors. “I think it is a great starting point.”

The incentives are broken down into the kind of prospect and the incentives also have different tiers, depending on the number of jobs and the size of the investment.

The goal, said Tracy Sharp of Boyette, was to provide a more defined structure and incentives to guide the LCDA.

A cost-benefit analysis or return on investment should be considered for every new or expansion project before an incentives letter is offered. Also, a company receiving incentives must show it is meeting the requirements, or the LCDA can put in place what are known as clawbacks.

For instance, a manufacturing project with $10 million investment and providing at least 100 jobs with an average wage of $18.84 per hour would receive a property tax abatement for one year, which would decrease by 10% over the next 10 years. A project bringing in at least 150 jobs with a $25 million investment gets a five-year tax abatement of 100%, with a reduction of 10% over the next 10 years. A $50 million project with at least 200 employees gets a 100% property tax abatement over the first 10 years, with a 10% reduction over the next 10 years.

“Tax abatements expire at some point in time,” Grant said. “I’m personally unaware of an abatement that doesn’t, though it is possible, even if uncommon. After all, our goal is to attract good jobs but also to ultimately expand the tax base too, so we do want them to expire. In fact, we want to offer incentives for the shortest time possible and still be successful in attracting the business and supporting its success here. The length of the abatement should align with the competitiveness of the project and its value to the community.”

The LCDA chose $18.84 as the baseline for starting wages, as it is 10% more than what the state uses in hourly wages, $17.13, in determining incentives.

LCDA chairman Al Williams recalled how industries looking at coming to Liberty County in the past were offering minimal salaries.

“They were leaving decent paying areas for just above poverty level wages,” he said. “I always hated it. The cut and sew folks are gone. Let’s compete for these folks who can pay these kind of wages. I think it’s very modest and I think it’s very fair.”

Warehouses and similar projects also would have incentives tiered to the amount of investment and the number of jobs. When those property tax abatements are scheduled to sunset, or come to an end, also depend on the size of the project.

Other incentives the LCDA could offer a prospect include reduced land or building costs, temporary office space, relocation and transition assistance and infrastructure investment.

“Liberty County has been very successful being aggressive with incentives,” Grant said. “And with the growth of our region creating greater demand, we are hoping we can be even more successful attracting the types industries and jobs we most desire. We will continue to be aggressive for projects that would have the highest return on investment for the community like manufacturing, for example.”

Grant said the meetings she has had with others on the LCDA’s strategic plan have resulted in positive feedback.

“There seems to be a real spirit of partnership,” she said.