Over the years, we have grown accustomed to assuming economic development in Lowndes County is confined outside the city limits of Columbus, most of it at or near the county industrial park.
So, when Golden Triangle Development LINK CEO Joe Max Higgins approached the Columbus city council Tuesday to ask for the city’s support for an expansion of a business located in the city, there was some hesitation among board members.
What Higgins had asked for was a 10-year tax exemption for a $2.5 million expansion by Burford Electric Service, which has been operating in East Columbus since 1959.
When Ward 5 councilman Stephen Jones suggested the council table to the issue so the council could read over the proposal, Higgins noted the county’s board of supervisors needed all of 10 minutes to sign off on the deal.
As much as anything, this is a reflection of where economic development in Lowndes County is happening. Supervisors have been signing off on tax-abatement programs for expansions and new businesses for years. It has become a routine part of the process.
But for the city, it’s something of a novelty. While no one should object to council members performing due diligence or asking questions, these tax abatements are pretty straight forward, with no real risk to the city since the taxes withheld are only applied to new construction. Additionally, the abatement only applies to city ad valorem taxes and not school taxes.
Tax relief like this aids companies as they invest in their expansions, which creates new jobs.
To its credit, the council came around, unanimously approving the tax abatement. The decision signals Columbus is open for business.
City residents should be encouraged by Burford’s expansion and its commitment to staying in the city. We also like the fact the company did not choose to operate under a code name while asking for these tax breaks. In most cases, the identity of the company is not revealed until the agreements have been reached.
It’s a smart move because Burford has a good story to tell. It’s a local, family-owned company that wants to continue to call Columbus home. The city has seen a steady exodus of companies either shuttering or moving, so a local company that is expanding is a success story the city can share.
It sends a message that Columbus is open for business, and that kind of optimism can be contagious.
These aren’t give-aways, after all, they are investments that pay dividends without real risks.
We only wish the city council will become so familiar with these tax abatement packages that signing off on these deals will be a matter of minutes.
The Dispatch Editorial Board is made up of publisher Peter Imes, columnist Slim Smith, managing editor Zack Plair and senior newsroom staff.
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 37 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.