Lowndes County extends deadline for Silicor, with conditions
Silicor Materials, which manufacturers silicon for solar energy production, received a six-month extension Monday to secure financing and break ground at its facility in Lowndes County, contingent upon the company putting up $150,000 in earnest money.
It’s the second extension the company has gotten. It missed the first deadline in September, and Silicor officials told Lowndes County officials last month they would miss the second one, scheduled for Dec. 31. The company has cited difficulty securing financing as the primary reason behind the delays.
Silicor has until Dec. 31 to put the earnest money into escrow, Harry Sanders, president of the Lowndes County Board of Supervisors, told the Mississippi Business Journal Monday afternoon. If the company fails to do that, he said, the county’s incentives are canceled and the deal is off.
The deal will also be off if, by June 30, 2013, the company has not secured financing and regulatory permits and broken ground. The company will also forfeit the earnest money. Silicor had planned to build on 90 acres owned by the county at Lowndes County’s industrial park. “We just can’t keep holding that land for them,” Sanders said.
Sanders said the county had done infrastructure upgrades to the site, but that work had been planned before Silicor made it known it was interested in it.
The project would represent a $200 million investment by Silicor, which planned to employ almost 1,000 people at the facility once it opened.
In a special session in September 2011, lawmakers approved a $75 million incentive package for the company, known then as Calisolar, including $59.5 million for construction of the facility and equipment to put in it, $11 million for infrastructure and $4.5 million for workforce training. Lowndes County also pledged $19 million. None of that money has actually been spent, though, because it was contingent upon Silicor breaking ground on its facility and reaching other milestones afterward.
Silicor’s struggles come right after Twin Creeks, another state-backed alternative energy project, failed. Twin Creeks had planned to make solar panels at an 80,000 square-foot plant in Senatobia, but the company never started production and has dissolved after being sold. The buyer, GT Advanced Technologies, will not honor the agreement with the state, which loaned Twin Creeks $26 million to build the plant and stock it with equipment. State officials are currently trying to settle with Twin Creeks and find a tenant for the Senatobia facility.