The Development Authority of Cobb County agreed at its August meeting to give $1.4 million in tax breaks to Arylessence after the County Commission granted the company $620,000 in permit fee waivers earlier this year.
Arylessence, a fragrance manufacturer headquartered in Marietta, sought tax breaks for the $27 million expansion of its campus to grow its capacity and bring a potential 30 new jobs with an average yearly salary of over $75,000.
“This is a significant stand-alone expansion of their corporate campus,” Andrew Egan, the company’s lawyer, said to the authority. He said the company hopes to bring “approximately 30 new jobs with approximately 50 jobs being upskilled.”
At the Aug. 23 development authority meeting, executive director Nelson Geter said the package would result in a net benefit to the county, citing the fiscal impact study conducted for the deal.
An Atlanta Journal-Constitution review of the project found that the company sought financial incentives from both the County Commission and the development authority. But the fiscal impact study did not take into account the county’s fee waivers, which totaled $620,000.
When the fees are factored in, the total financial incentives — about $2 million — represent a net loss for the county. The school board will still receive a net benefit, according to the study.
After the AJC first reported the county fee waiver in March, the development authority now requires applicants to disclose any other public assistance they may be seeking.
When the DACC provides tax breaks, it requires companies to make payments in lieu of taxes to ensure the county does not lose revenue from current property taxes. The abatement period lasts 10 years with taxes increasing incrementally.
J.C. Bradbury, a board member and economist at Kennesaw State University, was the only vote against the deal.
“I feel that development authorities are for developing new business in Cobb County, and it’s an existing business,” he said.
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