Commissoners nix tax abatement
Published 6:00 am Tuesday, November 17, 2015
Limestone County commissioners let a motion for a tax abatement for a possible LawLer’s Barbecue expansion die for lack of a second Monday morning.
The plan, dubbed “Project Tasty,” calls for LawLer’s to invest $2.5 million at the Dekko Industrial Park in Ardmore to move its meat processing and wholesale food cooking operations from southern Tennessee to Alabama.
LawLer’s owners were looking for an abatement totaling $38,250 during the construction period for state sales taxes. Also included is $76,279 in state property tax abatements over 10 years. Owners would then be responsible for paying a total of $58,331 in new school taxes over the same 10-year period.
District 3 commissioner Jason Black said he doesn’t have anything against the local barbecue chain, but didn’t feel comfortable voting for the measure when he received information on the project only five minutes before the meeting.
“I didn’t have any info on this until 9:55 this morning,” he said.
Limestone County Economic Development Association president Tom Hill said the practice is usually to present the paperwork for abatement proposals to the commission by the Wednesday work session before the meeting at which the vote is to take place. However, all the paperwork wasn’t finalized until late Friday. Commissioners did know a tax abatement vote was coming, as it was on Wednesday’s work session agenda, but they were unaware of the specifics, because one of the parties involved in the bargain requested not to be named, according to LCEDA chairman Tony McCormack.
LawLer’s officials didn’t have a problem sharing their name before Monday, but the current tenants didn’t wish to be made public.
Black said that although the proposal qualifies for an abatement under state law, he didn’t necessarily see the benefit to the entire county by granting an abatement to one locally owned barbecue business.
“How is it going to be beneficial to everyone in Limestone County if we don’t grant tax abatements to these other restaurants that are cooking on-site?” he said. “Where do we draw the line? Where’s our money?”
District 4 commissioner Ben Harrison, who is known for his stance against tax abatements of any kind, said he agreed with Black and added he personally didn’t feel comfortable with all the information kept private until the time of the vote.
“Once you come before us and ask for taxpayer assistance, the taxpayers and the commission have a right to know,” he said.
Hill and McCormack expressed their disappointment and said there must have been a miscommunication on their part and they hoped the commission would reconsider the motion in the future. Commission Chairman Mark Yarbrough said that reconsidering the measure could be a real possibility if more information is given to the commission.
Asphalt distributor
Commissioners also voted to purchase a new asphalt distributor. The one currently used for county paving projects is broken to the point where repairs and upkeep cost more than the machine is worth, according to officials inside the commission.
The decision to purchase the machine for $175,000 was unanimous, but Harrison stalled the vote to ask his peers to consider changing the source of funds for the purchase.
Money for the distributor was slated to come from the “severance tax” fund, which is paid by groups that take raw materials out of Limestone County soil. That tax is rolled into the gas tax fund, which is distributed among the four districts. Harrison has stated multiple times this year he feels he is not receiving a fair portion of the gas tax funds and further depleting the severance tax fund would only make his situation worse.
“I find it ironic that we find ways of funding jobs of dubious value (and tax abatements), but we don’t find ways of funding our critical infrastructure on a sustainable basis,” he said.
District 2 commissioner Steve Turner asked Harrison why he was making that argument if he turned down state funds for a bridge project. Harrison replied he could do the project within his own budget for cheaper than the match required for the state grant. The state money could then be used to pay overages on other state projects in other districts, he said.
Harrison made a motion to purchase the distributor from public building funds, but the motion died for lack of a second. Harrison then voted yes to purchase the machine from the severance tax fund.
Other business
Commissioners also voted on the following items during Monday’s meeting:
• Changed work session from Wednesday, Dec. 2, to 10 a.m. Tuesday, Dec. 1;
• Authorized David Freeman to sign a lease agreement for a Canon iRC3325 copier for a term of 36 months with three annual payments of $1,140;
• Authorized agreement with North Central Alabama Highway Safety Office for project funds in the amount of $4,000 approved under 402 STEP grant ($2,000) and High Visibility Alcohol grant ($2,000);
• Approved medical leave for Angie Maples until Dec. 10;
• Approved to hire Matthew Neighbors as engineering assistant in CAD/GIS/Elections department, pending drug screening;
• Approve to hire Melissa McGlocklin as license tag clerk in the license commission office, pending drug screening;
• Approved merit increases for Tavaris Hines, Rhonda Mitchell and Marcia Pratt;
• Approved Legacy Grove addition 8, 33 lots;
• Approved 25 mph speed limit on Holland Lane;
• Approved First National Bank as county depository;
• Approved to place 1995 International 4700 tar truck/asphalt spreader on GovDeals;
• Approve change orders to Limestone County Courthouse totaling $65,623.50 for structural and electric repairs;
• Approved allowing Martin & Cobey Construction Co. to approve small work needed to be done in a timely manner to prevent delay in overall project;
The commission will meet again at 10 a.m. Tuesday, Dec. 1, at the Washington Street courthouse annex in Athens.