PANERA INCENTIVES: Council pulls controversial measure
Published 8:00 pm Monday, August 13, 2018
Citing “inaccurate” remarks and “anxiety” over a plan to offer $250,000 in incentives to lure Panera Bread to Athens, City Council President Chris Seibert on Monday told a crowded council chambers there would be no vote on the controversial measure.
The decision provides Mayor Ronnie Marks an opportunity to try to renegotiate a deal with RPI One-Athens LLC, which is developing the 7,000-square-foot restaurant at 1323 U.S. 72 East.
“We’re going to talk to these guys and see if there’s another channel to go through and still land this,” Seibert said. “I think it’s the (perception) that the $250,000 might be an upfront payment that has really energized this issue.”
Seibert also attempted to clarify the nature of what the council was set to vote on, which he described as being similar to the $220,000 approved for a Buffalo Wild Wings-anchored shopping center in 2015. The city provided no money up front, and taxes from BWW, Osborne’s Jewelers and Marco’s Pizza will be abated until the $220,000 threshold is reached.
“Those of you who own (restaurant) franchises, you know it takes a long time to set these up. (Restaurants) do a lot of research, and it takes them a lot of time,” he said. “(The council) doesn’t say, ‘Hey, come in; we’ve got $250,000 for you.’ (The restaurants) typically ask for more and we settle for less than that. (Panera) asked for a $250,000 tax abatement in arrears. They anticipate (hitting that number) in less than five years.”
In addressing what Seibert called “the fairness question,” or whether the city should also offer incentives to existing businesses, he said he couldn’t dispute the concerns. He added, however, cities like Athens have been put in a place where they must compete for new businesses with other cities, whether it’s Huntsville, Madison or another state.
“If we don’t do this, will they come? I don’t know. I know if we do this, they will. I know if we don’t do this and they do come, it will be a litmus test,” he said. “If we shoot down incentives tonight and don’t get the restaurant, maybe we don’t entertain incentives anymore.”
Seibert urged any existing business owner who has a plan to grow his or her business but needs financial help from the city to bring a plan to the council. He said he could not remember a business owner doing so, but Joseph Cannon pointed out an existing restaurant previously sought help from the council.
Following the meeting, Cannon said Village Pizza in Athens asked the council to help fund a fire suppression system, but the council never voted on the issue. He added the council had previously also considered developing an incentive plan with set parameters, but it never came to fruition.
“This is a cry for having a (incentive) system,” Cannon told Seibert during the meeting, adding the council should look at a plan developed by the city of Jackson. “It’s a plan that’s elementary, but it’s better than what we have.”
Seibert also addressed what he said were negative Facebook comments about the proposal. He wanted the public to know council members weren’t receiving bribes or kickbacks in exchange for approving the incentives.
“We make $900 per month to (be a councilman),” he said. “We all chose to do it. … None of us are getting rich up here.”
Council members Harold Wales, Frank Travis and Wayne Harper also weighed in on the decision to pull the measure. Each councilman said they had heard numerous comments from both restaurant owners and residents.
“I don’t feel it would be right to move ahead without some questions being answered, even if they are not answered to your satisfaction,” Travis said.
Wales said he was concerned about “upsetting the community.”
“Down the road, we’ll see if we can get them anyway,” he said.
Harper said he appreciated the feedback from the community.
“For us to make informed and wise decisions, it’s important to hear from a lot of people,” he said.
School update
Shortly after appearing at a press conference to update the public about the status of the new Athens High School, Superintendent Dr. Trey Holladay provided the same update to the City Council. He talked about the challenges of moving high school students to the former Athens Middle School and about traffic and transportation issues.
Councilman Harold Wales asked if the school system had considered implementing bus service for high school students, but Holladay said it wouldn’t happen anytime soon. He explained it’s part of the board’s long-term strategy, but buses cost about $100,000 each, and it would cost another $25,000 for driver pay and benefits.
“It would cost us about $600,000 to get buses for the high school,” Holladay said. “We hope with the (city) growth will come some tax money.”
The superintendent said he’s heard a mix of negative and positive comments about the start of school being delayed to Aug. 30.
“Some parents said they liked having a longer summer this year,” he said.
Forrest street bridges
Elsewhere at the meeting, the council approved two items related to the bridge replacement project on Forrest Street. The first was a resolution to enter into an agreement with the Alabama Department of Transportation to construct a girder bridge on Forrest Street and resurface Forrest from U.S. 31 to Lindsay Lane. The council also authorized Marks to enter into an agreement with Morell Engineering for engineering and inspection services related to the project.
Public Works Director James Rich told the council the project bid would be let later this month and work on the project could start by year-end. The project will require the city to close Forrest Street from U.S. 31 to Lindsay Lane while the project is underway, which will necessitate detours and new routes of travel for residents.
Other business
In other business, the council:
• Authorized Marks to issue a task order to Morell Engineering to survey and present to the Athens Planning Commission a map of consolidation of the Pilgrim’s Pride property;
• Authorized Marks to enter into an agreement with Morell Engineering for the construction, engineering and inspection services for the Athens High School traffic improvements at Pryor Street and U.S. 31, Athens High School Boulevard and Alabama 99 and U.S. 31; and
• Approved an ordinance to adopt a new flood damage prevention ordinance. Rich said the Federal Emergency Management Agency requires adoption of the new flood map so residents can apply for flood insurance if they choose. He added the flood zones have changed since the city adopted the previous flood ordinance.