A proposed $21 million investment would develop a 25-acre automobile dealership complex and mixed-use development with 20,000 square feet of office space, a restaurant, convenience store and 15 single-family homes near Highway 12’s Hilton Garden Inn location.
Chris Gouras, a representative of HPM Development LLC, briefed county supervisors about his client’s project Monday and asked the board to support a $3 million-maximum tax increment financing (TIF) bond package that will fund construction of an access road and other infrastructure improvements in the area by Old West Point and Pat Station roads.
The plan would pledge half of the parcel’s tax contributions toward retiring the bonds, he said, while the other half would be serviced by 50 percent of sales taxes generated within the TIF district.
The land, currently classified as agricultural in nature, only generates $44 per year in taxes. After the project develops, TIF documents estimate it will produce about $279,049 annually.
School taxes, which cannot be waived, constitute about $133,556 of that amount.
Once completed, estimates predict the development will generate about $42 million in annual retail sales, resulting in a sales tax rebate of $421,335 for the city each year.
Starkville aldermen and county supervisors are expected to hold public hearings on the financing plan in July.
The focal point of HPM’s project — the automotive complex, which is expected to house two dealers selling Chevrolets, Chryslers, Dodge Rams and Jeeps — could solve issues with economic leakage, as many consumers leave city limits to buy and service their vehicles.
Gouras said the developer could begin construction soon and aims to have car sales beginning by September 2016.
The Greater Starkville Development Partnership Board of Directors last week issued a resolution fully backing the project and its associated TIF plan.
The first phase of the project, the resolution states, is expected to create 70 full-time jobs and 10 part-time positions with an annual payroll of approximately $4 million. Additional development phases could create another 50-75 jobs, the document states.
“The county is one piece of the puzzle, and the city has the bigger piece,” said District 2 Supervisor Orlando Trainer. “This board has always supported endeavors like this.”
The investment itself has been in the works for a while, Gouras said, but issues with the access road delayed its materialization.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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