The Pearl River County Board of Supervisors approved a resolution for a Tax Increment Financing plan during Monday’s meeting, putting the ball in the city of Picayune’s court as to whether the plan will move forward.
The topic at hand deals with a TIF plan to partially reimburse the developer, Andy Cooper, for his expense in the construction of infrastructure to prepare the area for the construction of a Walmart Neighborhood Market near Highland Community Hospital.
Urban Development Toolbox representative Laurence Leyens said his proposal is for the development of a total of 276 acres within land owned by Cooper, however the first phase of that development will entail 6 of those acres that the Walmart store will occupy. The estimated cost for that first phase of infrastructure is between 1.9 million to 2.5 million, of which Cooper will be reimbursed for at least half. However, the proposal Leyens gave to the board does not just include the projected $2 million in infrastructure, it also includes infrastructure for the entire 276 acres Cooper plans to develop into commercial and residential structures. The total cost for that entire infrastructure, including what Walmart requires, is projected to be $6.5 million. Leyens said that he included all of that development so the TIF plan could be modified to suit the needs of the development as work progresses.
If approved by the council, and all goes as planned, the city would then take out a bond, without using their good faith credit, which would be paid for using only increases in sales and ad valorem tax as they relate to the new store. The county would kick in 50 percent of the increased assessed ad valorem tax toward retirement of the bond, while the city would add 100 percent of their increased ad valorem tax combined with 50 percent of the increased sales tax.
A bond would only be secured if the building was completed and revenue was generated. If for whatever reason the building is not completed, or the project does not move forward, then a bond would not be taken out. The bond would last for a maximum of 15 years, and would cap at 7 percent.
Additionally, Cooper has to meet all of the city’s infrastructure specifications before the city will accept the infrastructure, and the project moves forward.
Leyens told the board that if the TIF plan is not approved, he feels Walmart will not build the Neighborhood Market.
If the project does occur as planned, then it could mean between 75 to 95 additional jobs for Pearl River County. Leyens said Walmart has not indicated to him what percentage of those jobs would be full time with benefits.
Leyens said the additional tax revenue provided to the Picayune School District would not be used to retire the bond, instead those funds would go toward the school’s general fund. He estimates that figure to be about $112,000 in additional revenue.
County resident Austin Easterling said he feels this plan is like putting the cart before the horse because the current population can not provide an increase in tax revenue. Instead, if the new grocery store is built, it will only take sales away from the existing stores, such as Claiborne Hill, which is just down the road from the proposed location of the new Neighborhood Market.
“The people have to come first, and they are not here,” Easterling said.
Easterling also used the unfinished section of Highland Commons Parkway as an example why he opposes the project. He said Cooper has not finished that section of the road. Leyens said the reason the road is not complete is due to water compromising the base, but Cooper is still working to complete it.
Lawrence also brought up the fact that Claiborne Hill built another location in Waveland next to a Walmart, so they must not be worried.
Before a vote was cast, District I Supervisor Anthony Hales used the current county jail as an example of what happens when government steps in the way of developments. Hales said prior to it being built, the Mississippi Department of Corrections proposed to build a jail in this county at their expense, but that project failed when senators and legislators wanted to put the matter to public vote, which caused a delay. MDOC could not wait on the project, so it was moved to Stone County, and now the county is paying $750,000 a year for 20 years for the county built jail.
After the public hearing was closed the board approved the resolution on the TIF, sending the matter to the city council. Board members Hales, J. Patrick Lee, Malcolm Perry and Dennis Dedeaux all approved that motion, while Sandy Kane Smith opposed.
See additional coverage of the board meeting in a subsequent issue of the Item.
The next board meeting will be Wednesday July 22 at 9 a.m.
The Picayune City Council will hold their public hearing on the TIF plan Tuesday, July 7, at 5 p.m. in the council chambers of City Hall.