By Adam Studzinski

NORMAL – The incentive package for Rivian Automotive approved by the Unit 5 Board of Education Wednesday means the district will likely be losing out on about $390,000 in property tax revenue per year for five years.

That’s because the deal calls for Rivian, which is in talks to purchase the close Mitsubishi Motors plant, to receive a 100 percent property tax abatement for five years, if certain criteria are met.

Board President Meta Mickens-Baker said it was not an easy vote.

“We run at a very slim margain as it is. We find it very challenging to balance our budget over the last several years as the state has reduced their budget in the (education) fund, as well as in the transportation fund,” said Mickens-Baker. “So that’s a big part of what’s in my mind.”

Mickens-Baker added another consideration is the fact Unit 5 cannot afford to have the assessed value of properties in the community to drop. Normal City Manager Mark Peterson explained if Rivian does not buy the property, then the plant will likely be liquidated and the property value will drop significantly.

Mickens-Baker said there are ways to make up the funding.

“Our staff have been really good and creative with finding grant funding. Ideally, we’ll find some grant funding that will help to replace parts of that,” Mickens-Baker said.

Unit 5 is the third taxing body to approve the incentives for Rivian. Normal approved the deal Monday, followed by Heartland Community College Tuesday.

Adam Studzinski can be reached at [email protected].