Adopt the incentives

Colbert and Lauderdale counties have before them a rare opportunity to take greater control of their economic destinies -- an opportunity that can't afford to be passed up

In a meeting last week of elected officials from the two counties and representatives of the Shoals Economic Development Authority, a plan was presented to create an incentive fund sustained by a sales tax in the two counties. The plan also restructures SEDA's board of directors, making it smaller and more accountable to taxpayers.

We believe this plan represents a major turning point for Florence, Muscle Shoals, Sheffield, Tuscumbia and the counties. As SEDA Chairman Macke Mauldin said, we can now control our own destiny, which we have never been in a position to do in the past.

First, the incentives. By adding a sales tax in both counties -- preferably a half-cent increase -- more than $6 million a year would be collected and placed in a special account. As a regional retail center, more than just Shoals residents would be contributing to it.

This money would be used as an enticement to companies considering the Shoals as the site of new facilities that employ a significant number of people at good wages.

As stated in the plan, the money would be used for non-retail companies that would pay salaries at or above the median wage rate for manufacturing in the Shoals. In other word, the money could not be used for companies that would not improve the take-home pay of workers.

There already is an immediate need for an incentive fund. A company that would employ 1,500 people has narrowed its site selections to two places -- one of them being the Barton Riverfront Industrial Park. The state is working to pay some of the incentive cost, but the Shoals must pay some of it, too. Right now, the local governments don't have a reasonable way to deliver the incentives.

Like it or not, offering incentives is the only way to attract good companies to our community. With trade agreements that have created a global economy, manufacturing outside the United States is far more attractive financially than it used to be.

Second, the change in the SEDA board structure. The board would go from 24 members appointed by local governments to 12 members. Eight of the new members would be the mayors of Muscle Shoals, Sheffield and Tuscumbia, the chairman of the Colbert County Commission and a member of the commission, the mayor of Florence and a member of the city council, and the chairman of the Lauderdale County Commission and a member of the commission. This core group would be the finance committee, which would have sole control over the incentive fund. Four additional members -- two from each county -- would be appointed at large.

The plan also calls for up to 10 percent of the tax to be earmarked for SEDA operations. We initially opposed this but we have changed our opinion. By using part of the sales tax to fund operations, local governments will no longer have to provide money, allowing them to spend it on strictly local needs. And because elected officials will control the tax fund -- and SEDA operating funds -- our concerns about accountability have been eased.

But there is talk of imposing different tax rates in the two counties. That's divisive and inherently unfair. It would represent a return to the politics of the past.

The two county commissions must adopt resolutions to create local legislation in order to move the plan forward. We strongly encourage them to look to the future and place the Shoals in a position of strength it has never enjoyed before by adopting this incentive plan.