Starkville aldermen approved a tax increment financing (TIF) plan Tuesday that should meet the needs of Academy Sports developers and facilitate the store’s construction in western Starkville.
Aldermen voted 6-1 to increase Starkville’s sales tax pledge toward debt relief from 25 percent to 33 percent, an increase that, along with a 100 percent ad valorem pledge, brings the overall TIF to $1.5 million across 15 years.
The ad valorem and sales tax pledges will help retire debt associated with public infrastructure improvements once the project is complete and generating revenue.
Oktibbeha County supervisors will hold a public hearing Feb. 1 on its portion of the TIF — a 50 percent property tax pledge.
Developers behind the $11 million, 65,000-square-foot investment, city leaders and Golden Triangle Development LINK officials hit an impasse earlier this month when aldermen lowballed its original TIF pledge.
After declining to discuss the project with LINK officials in a December executive session, aldermen weeks later offered developers a 25 percent sales tax pledge after they originally sought 50 percent.
This created a $300,000 shortfall developers said they needed to move forward with the project.
A week before Tuesday’s public hearing, aldermen and Mayor Parker Wiseman said they were comfortable increasing the city’s offer to help land the development.
Tuesday’s public hearing drew questions of fairness from some residents concerned about the city subsidizing some retail developments while others have opened their doors without financial assistance.
Ward 4 Alderman Jason Walker said he understood those concerns. Bringing a national retail chain to Starkville, however, could spark redevelopment and increase the need for expanding Stark Road.
“Every project is not TIF-worth,” Walker said. “I believe in this case it is in the best interest of our community to make sure that we land a national chain to be in Starkville.”
Only Vice Mayor Roy A. Perkins opposed Tuesday’s TIF plan.
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