Some commissioners undecided about tax

The notion of a sales-tax increase for industrial development appears to be gaining momentum among Colbert County commissioners, while Lauderdale's commissioners appear more hesitant.

The two county commissions have been asked to approve the increase of up to one-half cent as a way of providing incentives to industry considering coming to the Shoals.

At least three Colbert County commissioners say they generally favor the idea, on the heels of a meeting Thursday among local leaders in which more details for the proposal were laid out.

Two Colbert commissioners, James Bingham and Howard Keeton, remain unsure. Commissioner Emmitt Jimmar was unavailable for comment Friday.

"If the people want the right kind of jobs to come to Colbert and Lauderdale counties, the money's got to come from somewhere," Colbert Commissioner Charles Douthit said.

Keeton said the public should have more input before a tax is levied on them.

"I'm not sure at this time how I'm going to vote on it, because it's a tax," he said. "You hate to tax someone and not let him represent himself."

The timing of the request is tied to a major industry that is looking at coming to the Barton Riverfront Industrial Park in Colbert County. The company would employ at least 1,500 workers and provide an annual economic impact of $50 million or more, officials say. A decision is expected within a month.

Officials say incentives are critical in order to land the project and similar ones in the future.

Commissioners are being asked to seek support from local legislators to help pass two bills. One would give the commissions authority to raise the sales tax. The other would change the structure of the Shoals Economic Development Authority's board.

If the sales-tax bill passes, commissioners would decide how much to raise the tax to meet the area's obligation for the project, plus help develop other industrial sites and be a player in future projects.

Local elected officials have had several questions, and SEDA officials attempted to answer those Thursday when they and other local officials worked out a more detailed proposal.

Local state legislators, mayors of the Shoals' four largest cities and representatives from both commissions were among those at the meeting. The only members of the area's legislative delegation not in attendance were Sen. Roger Bedford, D-Russellville, and Rep. Johnny Mack Morrow, D-Red Bay. They both represent an area of Colbert County that includes the Barton industrial park.

By the meeting's end, attendees had worked out a proposal that would reduce SEDA's board membership from 24 to 12, and place elected officials in eight of those positions.

The elected officials would include the mayors of Florence, Muscle Shoals, Sheffield and Tuscumbia, as well as a Florence council member, the Colbert commission chairman, and the Lauderdale commission chairman and another Lauderdale commissioner.

The remaining four members would be selected at large by the sitting board.

The elected officials would comprise a finance committee that would make recommendations on how to spend money acquired from the fund.

Most involved agree it's imperative that both Colbert and Lauderdale counties end up with the same legislation. Without a consensus, most agree the idea will be shot down.

If that happened, it would force the cities -- Florence, Muscle Shoals, Sheffield and Tuscumbia -- to increase the sales tax. That would result in the sales tax being collected only in those incorporated areas and their jurisdictions.

Some involved in the process say that could be a problem because it no longer would be an all-inclusive issue with everyone in both counties paying the tax increase.

SEDA officials say a quarter-cent increase in general sales tax in both counties would bring in about $3.54 million per year, based on 2005 collections.

SEDA Executive Director Forrest Wright said that would be enough to pay for incentives for the major prospect, but leave the area with no additional funds for development.

Wright said a half-cent increase would provide funding for a coffer for future development and prospects.

Douthit said local governments are nearly tapped out of funds for industrial development. Local funds went into developing the Barton industrial site, which brought in SCA Tissue. In addition, governments provided incentive money to help lure North American Lighting.

"It costs a lot of money to put that infrastructure in the (Barton) industrial park," Douthit said. "It costs a lot of money to get industry in here."

Douthit said Colbert County would virtually be out of developed industrial property if the major prospect the area is courting would land here.

That would mean the area would need additional land and infrastructure for other industries.

"If you don't have the infrastructure to start with, they won't even talk to you anymore," Douthit said.

Colbert Commissioner Troy Woodis said he is "110 percent behind" the proposal.

"It's a good plan," Woodis said. "The competition level to recruit that type of industry takes so much dialing for dollars, and that's just the way it is. If you don't have the money to play, you go home."

Woodis said the bill amounts to 50 cents on every $100 spent, if the increase is a half-cent.

Keeton said, if the sales tax is approved and a Shoals Economic Development Fund is formed, SEDA leaders need to have an annual budget showing where the funds are going.

Colbert Commissioner James Bingham said he needs time to study the proposal.

Bingham said he understands the notion that placing elected officials on the board would make them accountable to voters. He stressed, however, there are very knowledgeable business leaders in the area who might be left off the board because of the realignment.

Bingham also is concerned about the need for a new county jail. He said if the tax were proposed, he'd want some funds set aside for that.

Colbert Commissioner Rex Burleson said the plans will be put on paper for all commissioners to review. If changes are requested, another meeting among SEDA officials and other area leaders could be called.

"I have discussed it with some commissioners, but they want to see it on paper before giving an opinion," Burleson said. "I don't blame them.

"I think it can be worked out. The two commissions just need to get together and it'll work out."

The next regular Colbert commission meeting is March 6. Lauderdale County commissioners meet Monday.

The issue appears to be far from resolved among Lauderdale County commissioners.

Only Commissioner Larry Irons has said he favors the idea as long as proper accountability measures are in place.

Commissioners D.C. Thornton and Ronnie Brown said they have not made up their minds and still have questions.

Commissioner William Smith said he "won't support any sales tax without a vote of the people."

"I am for the creation of an economic development fund and an economic development authority in the area, but as far as sales tax goes, it's something the people should decide," Smith said. "If it has merit, then people will approve it."

Smith said Friday that he had not seen the proposed legislation that was outlined Thursday. But he likes what he has heard about the accountability measures mentioned at the meeting.

"The reformation of the SEDA board to involve eight elected officials is a step in the right direction," Smith said. "When you are dealing with public funds, you should have elected officials in charge of how that money is spent."

Lauderdale Commission Chairman Dewey Mitchell said the issue will not be on the commission's meeting agenda Monday, but said commissioners might discuss it at some point.

"Our commissioners have not seen the resolution," Mitchell said. "I don't think anyone has a problem with the concept, but it's a matter of details. I don't think everyone understands it yet."

Mitchell said he wants to make sure elected officials have control over any expenditures of public money.

Thornton said he still has questions about the proposal. He said there were some good points that came from Thursday's meeting, but he wants to see something in writing.

"It needs to come before the commission and be discussed," he said. "I've heard three or four different things, and I want to see the final draft."

Brown said he wants to hear what county residents say about it before he decides.

"We all want to know what it will go for and how it will be distributed," Brown said.

Bernie Delinski can be reached at 740-5739 or bernie.delinski@timesdaily.com.