Published: May 14, 2008 12:39 pm            

City offers incentive for a company to move to Jacksonville

By Kelly Young

kyoung@jacksonvilleprogress.com

Jacksonville City Council agreed in principle to offer a 5-year tax abatement package to an unnamed company negotiating with the city about potentially moving into the old Alliance Data Systems Inc. building.

The council met in executive session to discuss the possible tax abatement agreement, and then returned into regular session to take action. The motion passed unanimously.

“We agreed to personal property and real property tax abatements and sales tax reimbursements for a period of five years from the time the company opens in Jacksonville,” Mayor Robert Haberle said. “The agreement would take effect assuming all the other pieces fall together and a contract can be worked out.”

Haberle said it will now fall to the company’s legal team and City Attorney Joe Angle to hammer out a mutually acceptable contract. He said an agreement in principle to move the company here could be ready in the next few days, but an official signing of the contract could be weeks down the road.

According to figures by the Jacksonville Economic Development Corporation, the maximum amount of tax money that would be lost, during a span of five years, by offering these abatements is $140,160. On the other hand, the 397 full-time jobs the international client would bring to town would inject an estimated $44 million annually into the Jacksonville economy.

“They will be bringing in some mid-level supervisory people, but it is my understanding that they will be filling a lot of their positions from the local workforce,” Haberle said.

The mayor said JEDCO President Darrell Prcin and his entire organization should be commended for the hard work they have done to get negotiations with the company to this point.

“It’s not a done deal, but it is getting very close. It’s going to be a very good day for Jacksonville when this gets finalized, and it’s going to be a very good day for the people who have been displaced from their jobs recently,” he said. “The JEDCO folks did a good job on this one. I think it makes a statement that Jacksonville is willing to reach out and recruit good companies to town, and to do what we can to keep our people working and our community thriving.”

Following a public hearing, the members of the council voted unanimously in favor of creating a new zoning classification, “used merchandise auction house.” No citizens participated in the public hearing.

Due to the new classification, auction houses are now permissible in areas of Jacksonville zoned for heavy manufacturing, light manufacturing, industry, wholesale and warehouse applications. Auction houses can also now be established in areas zoned for local retail, commercial or central business uses, but a special-use permit must be obtained on a case-by-case basis.

The council also voted to pass a resolution canvassing the election results from Saturday’s general election. Last weekend, Rob Beall defeated incumbent Phyllis Wilburn in District 4 to earn a spot on the City Council, and Jeff Smith ran unopposed in District 2.

Haberle and Transportation Director Billy Redd each made a point during the meeting to publicly thank Wilburn for her service to the Jacksonville community.

“I would like to thank you for your service to this city and for the job you have done. It’s hard, and most of the time it is thankless, but it’s the best job in town because you get to work closely with the people that you represent,” the mayor said. “I appreciate you for taking the time out of your life to represent the citizens of your district and the citizens of this city.”

According to Haberle, the city will be making a more “formal” recognition of Wilburn’s contribution to Jacksonville at next month’s City Council meeting.

“Thank you very much for your service to this community, and for the nice cards and great compliments that you gave the crews throughout the city,” Redd said.

An ordinance was also passed by the City Council declaring the official results of the city’s special charter amendment election. All seven amendment propositions appearing on the ballot passed easily.

In other business the council approved:

• the minutes from previous meetings;

• an oil and gas lease with J.M. Exploration Company with a $150 signing bonus per acre and a 1/5th royalty for a 2.638-acre plot of land;

• the appointment of David Meyers and Joe Peacock to serve on the board of adjustments, appeals and codes;

• the appointment of Linda Compton to serve on the library board;

• the street closure of Commerce Street from Austin Street to Neches Street and Austin Street from U.S. Hwy. 79 to Wilson Street, from 5:30 p.m. Friday, June 13, until 5 p.m. Saturday, June 14, for the Tomato Fest; and

• a refund of $3,818.42 in taxes for property determined to be outside the city limits.

The Jacksonville City Council regularly meets at 6 p.m. on the second Tuesday of each month, at the Norman Activity Center. All meetings of the Jacksonville City Council are open to the public.

        

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