Aldermen are expected to again consider a $1.35 million-maximum tax increment financing package Tuesday that would help land a Wal-Mart Neighborhood Market in east Starkville and construct a public roadway to spur new development.
Its passage, however, is in doubt after the board voted against the proposal and a compromise that halved the request last month.
Ward 2 Alderman Lisa Wynn, who is listed on the agenda as spearheading the new push, could find success if either Ward 3 Alderman David Little, Ward 4 Alderman Jason Walker or Ward 7 Alderman Henry Vaughn — three of the four-person bloc, including Ward 6 Alderman Roy A. Perkins, originally opposing the matter — flips their vote Tuesday.
Perkins, who serves as the city’s vice mayor, is expected to oversee the board meeting since Mayor Parker Wiseman will be out of town on travel. As mayor pro tempore, Perkins does not participate in votes unless a 3-3 tie emerges.
Little, Perkins and Walker all previously said their original votes would hold when the matter was expected to be discussed Nov. 1.
Wynn pulled the matter from that meeting after she said counsel for the developer asked for the proposal to be delayed.
She is again stumping for the TIF package since the grocery store’s proposed road would open up about 30 acres near the Haven 12 apartment complex and the La Quinta Inn and Suites for new development.
Two other economic development projects, Wynn previously said, could be in jeopardy without the road’s construction. She did not disclose any details about those potential developments.
“Our city is poised with a great opportunity that could benefit our city, county, school system and the university. I do not represent the residents of Wards 5, 6 and 7. This market, if approved, would provide great accessibility to for grocery shopping; however, it is my hope that the board will embrace this measure so that growth in the east can start to occur,” she said. “The location would be most beneficial, and it offers employment opportunities.”
Project background
Opposition to Wal-Mart Stores East LP’s TIF request originated last month after residents questioned why Starkville would fund infrastructure improvements for a company that could afford such projects.
Little questioned how many transactions at the proposed store would be new purchases, saying he believed the grocery store would create transfer purchases that take profits away from existing businesses.
Maynard said he supports the TIF package for its immediate payout — landing the grocery store — and because the city is unlikely to spend almost $1 million on an access road in the future when it has numerous other infrastructure needs.
“Every time Wal-Mart opens up a new store in Starkville, it has historically acted like a magnet, drawing new businesses in the area. For anything to develop out there, the road has to exist.” he said. “…That area of Highway 12 is the future. Everything else is moving to that side of town. This is the spark that could kick it all off.”
Aldermen most recently have approved TIF packages for Mill at MSU, Parker-McGill car dealership, Cotton Mill Marketplace and Academy Sports. The car dealership is located in the vicinity of the proposed Wal-Mart project.
But Walker drew a distinction between the Wal-Mart project and others funded through TIF packages, saying the proposed Highway 12 access point does not qualify as a public road since it doesn’t link other existing infrastructure.
Christiana Sugg, a member of the Ridgeland-based consulting firm Gouras and Associates representing the developer, previously told aldermen the Wal-Mart project is not likely to materialize without TIF support for the estimated $900,000-$1 million road.
The Gouras’ TIF report previously estimated the $14 million investment would create 150 construction jobs and 95 associate positions. Those permanent jobs were expected to create an estimated annual payroll of $2 million.
If completed, the facility is forecast to create $20 million in annual retail sales, while providing the city, county and school district with a combined $133,976.04 in additional property taxes per year.
To fund the public infrastructure created in the project — the access road and signalization along Highway 12 — the developer is asking the city to pledge 100 percent of ad valorem revenues and 50 percent of generated sales taxes from the development for 15 years. County supervisors previously dedicated 50 percent of its portion of the ad valorem increase for the project, but the dedication is a moot point if the development does not proceed.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 40 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 40 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
