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Benton goes 'on the map' with offers |
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Tuesday, 12 August 2008 |
Council OKs incentives intended to spur economic development
Action taken Monday night by the Benton City Council “puts Benton on the map” with economic incentives go, Alderman Doug Stracener said.
Stracener, the council’s senior member, was referring to the passage of a pair of resolutions authorizing economic incentives for both new retail and industrial businesses locating in the city and for existing businesses.
The resolutions note that city officials have determined that the city should actively support and pursue economic development in the city by providing incentives to bring in new retail businesses.
“This gives the mayor (Rick Holland) and Marsha Guffey (director of community development) the tools to use to attract businesses,” Stracener said.
“Now, they don’t have to go back to the council and see what they can do,” he added.
The 10 aldermen unanimously voted to support the resolutions.
One states that retail businesses that generate $2 million to $5 million will receive incentives up to $75,000; businesses generating $5 million to $10 million will receive incentives up to $150,000; and businesses generating greater than $10 million will receive incentives up to $300,000.
The other resolution notes that the city is willing to expend money for any existing retail business inside the city’s corporate limits, which expands its facilities or business operations, adding projected annual retail sales. The same level of incentives will be offered to these as will be offered to new businesses, the aldermen determined.
These incentives would be paid out over a three-year period, according to the resolutions.
Incentives planned for industrial businesses, both new and existing, would range from $50,000 to $300,000, depending on the projected annual full-time salaries.
The resolution note that “proof of performance shall be the responsibility” of the businesses seeking incentives from the city.
In another matter, the council approved three ordinances that place annexation issues on the Nov. 4 general election ballot. The areas involved are Arkansas 5 and Mulberry-Salem Road; Arkansas 5 and Longhills Road; and an area of Salem Road.
Holland explained that most of these areas are connected to Interstate 30 and already receive city services.
“There is very little residential area involved in any of this,” Holland told the council.
Alderman Greg White voted against all of the annexation ordinances and Alderman Steve Lee voted “no” on the first one, which involved the area of Arkansas 5 and Mulberry-Salem Road.
Bob Huie, a Salem community resident who led an anti-annexation campaign regarding another area proposed for annexation, said the council’s action Monday night indicates to him that “you’re coming my way” and asked the council if the council is again considering annexing his area into the city.
Holland responded that the city eliminated that annexation proposal in response to the residents’ objections, but said he could not say this would be the situation in a few years.
Alderman Joe Lee Richards told Huie that residents of the Salem community eventually need to expect to become part of some municipality “unless you live 40 miles away from any city.”
“There comes a time when a city has to grow and the city may have to take steps to annex this area,” he said. “By 2020 everybody in Salem community is going to be in somebody’s city limits. You can’t stay in the county always.”
“The majority of this [annexation areas] is commercial property,” Holland said.
On another issue, the council approved an ordinance authorizing the mayor to adjust the 2008 budget to provide general fund employees with a 4 percent cost-of-living raises effective in January 2008.
Exempt form this are employees who already have received 4 percent raises during the current budget year.
In another matter, the council approved a resolution appointing Rebecca Brown to fill a temporary position on the Benton Civil Service Commission.
All of the aldermen voted for the appointment, though White had questions about the legality of such an arrangement and questioned City Attorney Brent Houston about this in the agenda meeting that preceded the regular council meeting.
The appointment reportedly was necessary because one of the commissioners, Sam “Pokey” Gipson, has used the same attorney representing Lantz Smith, who plans to appeal his recent termination by Interim Chief Roger Gaither to the commission.
Both parties have agreed to the appointment of Brown to serve in this capacity, Houston said, while assuring White that state statutes permit the appointment of a temporary commissioner in such circumstances.
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