Retiree objects to possible Athens retail incentives

Published 6:30 am Saturday, July 29, 2017

Ralph Diggins of Athens isn’t happy about a list of proposed guidelines that would offer incentives to new and existing retail businesses that want to repair, remodel or expand in Athens.

The retiree, who lives at 100 Willow St., shared his displeasure during the regular City Council meeting this week.

At the request of council members, Mayor Ronnie Marks recently studied retail incentives offered by four other Alabama cities so he could draft guidelines for Athens. The document proposes retail incentives under the following four conditions:

• Safety and Americans with Disabilities Act compliance;

• Facade improvement;

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• News businesses;

• Existing businesses.

While council members received copies of the proposed guidelines more than a month ago, they have not yet discussed whether they want to offer them. The guidelines were published in a July 22 story in The News Courier.

“I want to comment on an article last week in The News Courier in regards to the incentive program the city is considering visa vis paying our tax money to businesses to enhance structures,” Diggins told the council. “There is a big world of difference between doing that and bringing in big businesses like Publix or Buffalo Wild Wings — and some of the other firms that generate good income, high paying jobs, things like that.”

Diggins said he made a two-page list of reasons why he believes a broad-based set of guidelines is a bad idea

“I think it is a huge mistake to have a tax giveaway for unwarranted purposes, not just because its fair,” Diggins said. “It’s our tax money you’re thinking about using; you’ve got to be conscious about that. It bothers me that a lot of people don’t know what is going on. I think there should be a public hearing and a major presentation on how it’s all gonna work and how many people it is going to take to manage 20 small businesses.”

The request for guidelines grew out of Council President Joseph Cannon’s request for written guidelines for offering incentives after the council gave a $220,000 incentive to the development anchored by Buffalo Wild Wings in 2015. Although the mayor had wanted to consider incentives on a case-by-case basis, he drafted some guidelines at Cannon’s request.

District 2 Councilman Harold Wales told The News Courier Thursday, “I am willing to listen to it (a proposal of the guidelines), but I’m probably not going to be able to support that. I cannot see taking taxpayer money and putting it into private businesses downtown or anywhere regardless of whether they are improving their storefront or adding more tables or whatever. It is not really adding any jobs and I certainly don’t see it adding any revenue.”

Wales said the retail incentives he has supported in the past have gone to establishments Athens didn’t already have, ones that might bring new business and new revenue into the city.

“I cannot see taking taxpayer money that we need for street paving and all the other infrastructure and putting it into private businesses downtown or anywhere.”

Wales said as a councilman he would be more than happy to support street, sidewalk, lighting and other improvements or to make an area more attractive.

District 5 Councilman Wayne Harper told The News Courier Thursday he is open to incentives for retail but he probably could not support the guidelines as currently written.

“I’m not antibusiness or anything, but I don’t know if we need to get into the business of doing that because it could be very expensive for the city. The way it is written, people would be foolish not to take advantage of it, and there would not be enough money to give to everyone who needs and wants it. I don’t like being in that position. So, right now, I’m leaning against it because I would hate to have to tell one person okay and another person no.”

Council members Chris Seibert and Frank Travis had previously told The News Courier they want to help local business owners, but only if the city benefits from such an arrangement. Cannon said he is generally against retail incentives but asked for guidelines to ensure that if the city is granting them, the opportunities are equal. He said he backs industrial incentives because industries bring higher paying jobs that enable people to buy homes, which can add to property tax receipts.

The mayor said he may seek the council’s opinion on the guidelines during the fiscal 2018 budget hearings in mid-August if they don’t raise the matter before that. The council’s next meeting is Monday, Aug. 14.

The council could vote on the guidelines or choose not to.

See details of proposed incentives online at http://www.enewscourier.com/news/local_news/athens-council-mulling-incentives-for-new-expanding-businesses/article.