City eyes plan to help finance development

Published 6:00 am Thursday, November 9, 2000

Brookhaven officials voted Tuesday night to explore a taxdiversion plan that could help finance improvements for a possiblenew commercial development.

City officials did not identify what areas are being consideredfor development. However, some other discussions have pointed tothe old Gibson’s shopping center and surrounding areas as apossibility.

Negotiations between real estate and development officials arecontinuing. City Attorney Joe Fernald said the city would have amore concrete idea of plans when they are presented, and having aredevelopment plan for addressing needed improvements would benefitthe city.

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“We’ll be in a posture to proceed when they approach us,”Fernald said.

Attorney Randall Wall explained the Tax Increment Financing(TIF) plan to city officials.

Wall said the plan is a “simple” way of addressing neededinfrastructure improvements when a developer is consideringbuilding. The plan allows the city, through a bond issue, to do theimprovements and then divert expected taxes from the development topay for the bonds.

“It deals with it very nicely,” Wall said.

Wall said the plan would require no property tax millage rateincrease. He said the county may also participate in the TIFplan.

“If they do, that’s more money that gets diverted,” Wallsaid.

Wall said the city could divert a portion of sales taxcollections in the plan as well. The school district would receiveproperty taxes based on the total value of the planned developmentproject, the attorney said.

The TIF process would involve the city adopting a “fairlygeneral” redevelopment plan, then targeting a specific project onceapproached by a developer, having a public hearing and thenproceeding with the bond issue, Wall said.

The Target shopping center in Jackson was one example of acommercial development that used a TIF plan, Wall said. At theirSept. 19 meeting, when requesting Wall appear at a future meeting,city officials mentioned the old Gibson’s shopping center as onearea where a TIF plan could be used.

Fernald said the redevelopment plan could be fashioned as amulti-layered approach for a project that could be done in stages.Having a redevelopment plan, he said, would represent a “goodfaith” action by the city that it is interested in the project.

NO RATE REDUCTIONS

Following a request from some Tanglewood residents to reducetheir double-rate water bills for outside-the-city service,aldermen Tuesday night rejected the request and reaffirmed thedouble-rate policy.

“I don’t think we can,” Fernald said about reducing rates.

In presenting a letter that was to be sent to the residents,Fernald cited four reasons for the rate reduction rejection.

He said bond issue payment structures were based onoutside-the-city customers paying the double rates andinfrastructure costs of supplying the service to those customersshould not be borne by city customers. Also, outside-the-citycustomers paid no property taxes to the city and, responding toTanglewood residents’ research, it was immaterial that other citieswere not charging double rates for their outside-the-citycustomers.

According to Mayor Bill Godbold, there are 360 outside-the-citywater customers. If the city granted a reduction to the Tanglewoodresidents, Ward 1 Alderman Dorsey Cameron said they would begetting a special privilege.

With the double rates, Tanglewood residents had contended theirwater bills totaled more than what would have pay in property taxesif they were in the city.

DRUG-TESTING

DEBATE CONTINUES

Fernald also urged aldermen to review his submissions on thecity’s contracts for drug-testing of employees and be prepared toact.

“It’s just something the board needs to act on,” the attorneysaid.

At their Sept. 19 meeting, aldermen approved a contract with theHuman Performance Center for drug-screening services. However,since 1996, the city has had a series of automatically-renewedone-year contracts with Kim Carr and Associates for the sameservices.

Fernald said both appear to be valid.

Citing an attorney’s general’s opinion, and contrary to a verbalopinion received by an alderman, Fernald said there was nothingwrong with having two contracts. However, he stressed the need forcity officials to be consistent in their testing activities.

Also during the meeting, after Ward 3 Alderman the Rev. Jerry L.Wilson said he had spoken with the attorney general’s office aboutanother matter, Godbold instructed aldermen that they are to gothrough Fernald when they have questions for the AG’s office.

OTHER ACTION

* Resident Annie Knight, of 818 Turner St., spoke to the boardabout implementing a recycling plan.

“I think it’s important to recycle,” said Knight, who recentlymoved back to Brookhaven from Lansing, Mich.

City officials said it was something to consider. However,previous efforts failed because residents would not separate items,and there was difficulty in finding someone to accept recycledgoods.

“You could get it, but nobody wanted it,” said Jimmy Griffin,street department superintendent.

* Mitchell Davis was reappointed to the City PlanningCommission, and T.C. Maxwell was reappointed to the BrookhavenHousing Authority.

* Aldermen are reviewing a $23,000 bid, the only one received,for striping of Brookway Boulevard. The bid is expected to beawarded at the next meeting.

* In response to a request from Brookhaven Little Theatre, cityofficials asked for a more detailed plans of the theatre’s memorialbrick sidewalk project.

The theatre asked for city help in installing the bricks;however, officials cited concerns about water lines under thesidewalk and about city crews’ ability to do the requested work.The brick project is theatre’s fund-raiser to help with buildingand other improvements.

* Alderman-at-large Henry Newman requested a west-bound leftturn lane on Industrial Park Road at North Jackson Street. At sometimes, he said traffic is backed up to the new bridge.

“We need a left turn lane there bad,” Newman said.

* Trash and the need for public restrooms at some EastMonticello Street businesses were a concern Tuesday for Ward 2Alderman Terry Bates. “I think if you’ve got a business, you shouldhave a (public) restroom,” Bates said.

Alderman Wilson added that some businesses were showing”favoritism” in that employees and some members of the public wereallowed to use the restrooms, but not others.

Aldermen said they would have to check building codes to seeabout requiring restrooms.