37° L/RAIN, Adopt the incentives
Last Modified: Saturday, February 24, 2007 at 11:00 p.m.
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
- Training class set for January
- Officials to make 'major announcement'
- Railcar company ready to pick Shoals
- Lauderdale votes to implement tax hike
- Sales tax in Colbert will increase Aug. 1
- August eyed for half-cent tax collection
- Talks to begin on imposing sales tax
- State voters approve two amendments
- Area voters overwhelmingly approve both amendments
- Area bills gain final approval
- Shoals development bills advance
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.
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Comments
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February 25, 2007 12:57:48 pm
RE: http://www.timesdaily.com/apps/pbcs.dll/article?AID=/20...250331/1015/OPINIONS
The Seda, Taxes and Thieves part was because I was reading this editorial I thought of the old Cher song, Gypsys, Tramps and Thieves. WELL I KNEW I SHOULDN'T HAVE CONGRADULATED THE EDITORIAL STAFF AT THE TD FOR HAVING BALLS LAST WEEK! Forrest Wright and Mauldin and all that goes with it and SEDA (including Goens) effectively neutered them! Get ready for a tax increase folks! Let's see how many jobs THIS one will bring and what the pay will be! If SEDA'S record in the past 20 years is any indication: GOOD MONEY AFTER BAD! THE DOG
February 25, 2007 1:50:43 pm
I'm still waiting on my ROI (Return on investment) on my gas tax to get the RTJ golf course. I think we should see how that idea from our geniuses before we let them lead us down the primrose path again.
February 25, 2007 2:58:03 pm
So, they want to suck an additional $6 million/year out the Shoals area economy. How nice. And SEDA gets to use up to 10% ($600,000) for it's own gratification (oops, I mean operations)
In return we get more promises. I'm kinda leery of promises, don't know why.
I would like to see some better accounting showing exactly what is invested and what we actually got from it. There's way too many loose ends in this business.
February 25, 2007 5:21:54 pm
FYI --
My daughter is a server at a locally-owned restaurant in downtown Florence. On Friday night, she had a party of twelve businessmen from Kentucky who had flown to town only because of the RTJ devolopment. They were impressed with the complex and were enthralled with our community. She got a $100+ tip and they added another $75 for the bartender. They said that they'd definitely be back. How could that not be good?
By the way -- for those who denigrate service jobs -- my daughter is a professional person who works at a restaurant several nights a week so that she can pay cash for a new car. She regularly makes $18 - $20 per hour. Health insurance is available, but she declines it because it would be double coverage. I DO NOT think any incentive money should be used for retail, but beware when folks tell you that these are $6/hour jobs.
February 25, 2007 5:26:31 pm
That's GREAT for your daughter falcon! Are you really THIS gullible? MAN, you bought into the RSA thing: hook, line and sinker. Think about it for a minute, is your daughter going to be a waitress for the next 20 years? THAT IS HOW LONG THE CITIZENS OF THIS AREA WILL BE PAYING THE ADDITIONAL TWO CENT GAS TAX! THE DOG
February 25, 2007 5:37:58 pm
Very good point!! Well Said!
February 25, 2007 5:53:48 pm
Being a local small bussiness owner myself, I purchase a lot of gasoline. When the subect came up about the two cent per gallon of gas tax for economic development I figured if I could sell one job per year more,(aprox $5000) it would pay off. I attest it has paid off because I have asked people new to the area why they chose to move here? Remarkably I have been told because of the RTJ golf course. I personaly feel it gives an opportunity for the betterment of the area, and i am sure with patience, you will expeirence the same.
February 25, 2007 6:51:00 pm
I speak from the perspective of someone who was once a professional server in the Shoals area, and I worked at several well-known and respected restaurants for years. I can tell you that making $18-20 per hour as a server in the Shoals is rare: it all depends on the restaurant, and there aren't many here that can support servers in that manner. Furthermore, I have never worked at one that offered health insurance (are you kidding me? ). Quite frankly, many/most servers in the Shoals DO work for minimum wage each and every day. If your daughter is an exception, then she should keep her job as long as possible. Should anyone care to follow up on these comments, just call your local restaurant and ask what benefits are offered, what the hourly pay is, and what the average server makes on a Monday night shift and on a Saturday night shift. Then do the math.
February 25, 2007 7:11:23 pm
As far as the sales tax incentive goes, if they earmark that money solely to be used as incentives (infrastructure improvements, tax abatements, etc.) for industrial projects paying at or above the median salary for manufacturing jobs in the area, I think it's a good idea. In this day and age, you have to provide incentives. That's what it's come to.Some people are against raising taxes, and I'm not going to argue with them, we just have different philosophies and that's fine. Aside from raising taxes, I believe the proposed set-up for SEDA will provide more accountability, which is definitely something SEDA needs. With two-thirds of the finance committee being elected officials, if they're not doing a good job or using the fund the right way, vote them out. It's better than the current system.As far as using 10 percent for SEDA's operating expenses, what's the problem with using this taxpayer money for operating expenses to replace the money the governments are already giving SEDA. That money is coming out of our pockets one way or another, unless you just don't believe this area needs any economic development group at all. SEDA is going to get operating expenses from the local governments one way or another.And as for the RSA project, I'm with unclegus and falcon. From what I've heard on this forum and around town, the only people that aren't happy with the project are the people who opposed it to begin with and still can't admit that it was a good thing for the area.Let's see:
The conference center has been booked solid with state and regional conferences for the past year, which has never happened in the Shoals.Thousands of people have visited the Shoals and spent money that wouldn't have otherwise.The RTJ course has gotten the area national and global exposure, like this from espn.com, for example:
http://sports.espn.go.com/travel/news/story?id=2767291#27
Not to mention the fact that the project gave the Shoals just one more thing to be proud of.I'm sure all that is just propaganda though.
February 25, 2007 7:28:11 pm
ALABAMA MCCOY: ACTUALLY; other than the little bleep you gave on the ESPN website, all was just the rhethoric put out by the Chamber of Commerce and Debbie Wilson, Parks and Recreation Supervisor. It has YET to be seen just what if ANY payoff the RTJ golf trail will bring as far as economic benefits such as jobs other than retail and service and bookings at the Convention Center have STILL not put the ENTIRE cost of the project from CONCEPTION and the years of VACANCY in the BLACK. SORRY BUD; YOU TOO are being mislead by the TD propoganda and Bronnerism! THE DOG
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