Lauderdale County approves $257K as part of agreement for BWI rail spur

Published 11:30 am Monday, July 30, 2018

File photoThe Lauderdale County Board of Supervisors took the next steps to bring a promised rail spur to Marion for BWI Companies, Inc. at Monday's board meeting. 

The Lauderdale County Board of Supervisors signed the check that would ensure the construction of a rail spur, a key component of a deal made with BWI Companies, Inc. that convinced the company to relocate to Marion earlier this year. 

Though BWI Companies opened in July, the promised rail spur remains incomplete and is scheduled to be completed this year. 

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The county approved a prepaid agreement with The Kansas City Southern Railway Company for $257,852.88, a high estimate for the cost of the project, board attorney Lee Thaggard said. 

Thaggard said this money would pay for the cost of materials and engineering associated with designing a rail spur for BWI Companies, with a possible refund should constructions costs come in lower than expected. 

Because of this investment, Thaggard said that BWI Companies won’t request an ad valorem tax waiver for the next 10 years, a typical request for companies new to the county. 

The county also submitted a Railroad Protective Liability Application to Travelers Insurance for protection during the construction process. 

After receiving the county’s payment, The Kansas City Southern Railway Company will order construction materials, which could take up to 90 days for delivery. With materials in hand, the company will have 60 days to complete the rail spur. 

“This shows the rest of Mississippi that we’re here and we’re open for business,” Jonathan Wells, the supervisor for District 1, said, noting the 60 new jobs brought by BWI. “Hopefully it’s the beginning of many more.”

Bill Hannah, the president of the East Mississippi Business Development Corporation, said that negotiations had been years in the making.

“One of the primary reasons (BWI) chose us is this rail spur, so it’s a priority,” Hannah said. “It’s providing more jobs, better jobs and that’s what BWI represents and the EMBDC strives for.”