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Economic incentives can be good
Published August 29, 2009
Let’s go back in time a couple of years, back during the administration of the previous Albertville City Council.
One of their stated goals, repeated often and publicly, was to recruit new retail businesses. They were applauded for that but pick your metaphor – the issue became a thorn in their side or a burr under their saddle when they met limited success.
Those elected officials – Albertville mayor Carl Pruett and council members Jeannie Courington, Diane McClendon, Pat Allen, Lee Fleming and Kerry NeSmith – did get Santa Fe Steakhouse to locate here. That came after a false start with an Applebee’s franchise, but they did have some success.
Selected council members, along with Albertville Chamber of Commerce president Jennifer Palmer, made several trips to Las Vegas, Nev., and Atlanta, Ga., to conventions where retail developers gathered.
I think the investment in such trips was wise and will pay dividends, in the long run.
But that key phrase – “in the long run” – is one to remember and it was often cited, and honorably so, as the reason for a lack of immediate success.
Often we heard our officials say, “It takes a long time to develop a relationship with retail developers. We want to get to know them so that when they do want to develop a retail center in a town like Albertville, they will already know about us.”
That is the truth. It does take a while for this process to complete its full cycle. To go from square one of starting a retail recruitment process to a ribbon cutting can take several years.
I am thankful to Palmer and our elected officials for the groundwork they laid to get new retail businesses here.
And all along the way, including the recruitment of the Santa Fe, incentives were openly discussed and everyone seemed to agree it was a step any city had to take to get a business to locate here.
Sometimes the incentive is the absolute difference. The word on the street is that Lowe’s wanted to be in Albertville but they ended up in Guntersville because no incentive was forthcoming from officials then.
I would conjecture that had Lowe’s been on the south side of the city limit sign instead north, just in the Guntersville limits, Wal-mart would have also located in Albertville as well.
Imagine what a difference that would have made today, as the Albertville coffers are running low. The sales tax revenue from Lowe’s alone would solve many of this city’s financial woes.
Now, a developer has asked for incentives to help develop the Midway Plaza Shopping Center, on U.S. 431, in Albertville. He told the Albertville Council last week he had two retail businesses very interested in locating in that center and that retail sales might be as high as $20 million.
The incentive he requested is a 50-50 split in the increase in sales tax revenues. That seems reasonable to me.
Here are two questions for us all to consider. If we could get a $10 million retail business for no incentives, would we? Yes, it would be great.
And if we had found this developer in Atlanta instead of Albertville, would we quickly agree to his request? Yes, I think we would.
I think we should. It’s a win-win situation for all.
Ben Shurett is publisher of The Sand Mountain Reporter. His e-mail address is ben.shurett(at)sandmountainreporter.com.
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