Citizen’s communications at the Auburn City Council meeting Tuesday night again turned to a discussion of the city’s fledgling small business incentive program that offers rebates to businesses for making improvements that increase sales tax revenue.
The owners of Shakey’s Pizza Parlor and Wendy’s on Glenn Avenue, among others, spoke at the Jan. 17 meeting and expressed concerns that the new program offered an unfair advantage to new businesses at the expense of existing ones, some of which were struggling in a tough economy.
Echoing those concerns Tuesday night, Auburn veterinarian Kim West requested a full disclosure of information about applicants in a concise format and that the council revisit the issue to clarify how the program works.
The city council and the city manager defended the program, saying the information about it — including how to apply and who had received rebate deals — was available on the city’s website and the program had been discussed at multiple public forums.
West said she was concerned the criterion has not been fully explained to companies who applied for the rebate and were rejected, notably fast-food restaurants.
West speculated part of the problem was the distinction between fast-food restaurants, which are ineligible, and sit-down restaurants, some of which are eligible, was not explained well.
City manager Charlie Duggan said no fast-food restaurants had applied, noting fast-food franchises often have corporate support and were not envisioned as candidates for the program.
“We had much discussion about this, and we thought that, in targeting this, we are not looking for more fast-food restaurants. Now, we are not turning away fast-food restaurants … but we believe that this incentive program is unnecessary” for those businesses, Duggan said.
Duggan said while the information on the program does not include a list of types of businesses that would be excluded, the city staff does discuss eligibility with those who inquire about applying.
West said she was simply relaying concerns she had heard among residents and business owners.
Ward 2 councilwoman Sheila Eckman said she had heard from concerned residents and asked for a clarification of the intent of the program, saying she believed originally it was meant for the revitalization of Opelika Road and not to lure new businesses.
The program, which is administered by the Commercial Development Authority, is performance-based, requiring businesses to generate new sales tax revenue in order to receive the rebates, which would reimburse specific costs such as renovations or other improvements to buildings or property.
“It’s really performance-based; they have to stay in business, and they have to generate sales taxes to get anything back,” Duggan said.
The rebates must be approved by the council.
Duggan said the program is open to eligible businesses citywide, though previous discussions often referred to the revitalization of the Opelika Road corridor as an example of how it may be used. Duggan said the council had approved the applications for Niffer’s Place restaurant and the developers of Beef ‘O’ Brady’s, the only two businesses that have made it through the application process so far.
The development authority reviews applications and makes a recommendation to the city manager’s office, which would bring it before the city council.
Beyond confusion over which companies are eligible, West said she had fundamental concerns about a program that uses tax money to aid some businesses and not others.
West said she was concerned the city would potentially help some companies to survive while others fail.
“I worry about the city government picking and choosing these losers and winners,” West said.
Council members Gene Dulaney and Arthur Dowdell said they believe the program has the potential to help increase the city’s sales tax base, not dilute it among businesses. Dulaney added he wouldn’t support it otherwise.
“I think the council has already made the decision that it is committed to the program philosophically,” Ward 5 councilman Robin Kelley said.
Alleged assault
The council also heard from Carolyn Floyd of Opelika, who asked the city to look into the alleged assault of her son D’vonta Tyshawn Floyd in the Lee County Detention Center on June 15, 2011, before he was released on an appeal bond. Floyd was re-arrested by Opelika police after failing to appear for a court date in October 2011, according to court records. Floyd was convicted of misdemeanor theft and harassment.
Floyd said her son has lingering medical problems, including migraines, and needs a surgery to mend some of the injuries.
“It feels like the system failed me and my son,” Floyd said.
Dowdell said local black leaders discussed the incident.
Lee County Sheriff Jay Jones said he had met with Floyd’s mother, Dowdell and others and, based on her concerns, placed her son in solitary confinement. Jones said his office was looking into the complaints.
Dowdell said he is concerned about what could happen to Auburn’s inmates.
“The city of Auburn cannot afford lawsuits,” Dowdell said.
Auburn Mayor Bill Ham said the city and Auburn police were not involved with the event.
City projects, funding
The council also approved an updated Major Street Plan, which identified current streets and projected future streets. City engineer Jeff Ramsey said the updated plan creates new categories for street types, which will aid in design work.
The council approved a resolution to reimburse the city for work on downtown parking projects and additions on the Frank Brown Recreation Center campus ahead of the issuance of $4 million in bonds to pay for the projects. Voters approved the projects during a special election Jan. 24, and the city is expected to issue the bonds by March.
The city receive permission to reapply for funding from the Alabama Recycling Fund Grants program on behalf of the East Alabama Recycling Partnership, which includes the city, Opelika, Auburn University and Lee County. The funds will be used to promote recycling and decrease waste locally.
The council authorized the city to enter into an agreement with the Alabama Department of Transportation for improvements to the intersection of South College Street and Shug Jordan Parkway, including the addition of more left-turn lanes. The state and the city will split the cost of the project, which is estimated at $861,223; ALDOT will pay $500,000 for its part. The city will be responsible for generating plans for the project, which must be approved by the state, according to the agreement. Major construction will begin after the 2012 AU football season, Ramsey said.
The council approved an Industrial Development Board plan to secure $3 million in financing for the expansion of a building owned by board and use $15,000 from the Revolving Loan Fund for site work associated with the project. The building houses Cumberland Plastics Systems LLC.
In other business
The council also:
» Recognized employees for years of service and awards;
» Approved an restaurant retail liquor license and outdoor café permit for Bloodhounds, which will be located at the former site of the Olde Auburn Ale House;
» Annexed 24.35 acres along Lee Road 72 near the intersection of Lee Road 86;
» Approved conditional use for an expansion at auto-parts maker Weidmann Plastics in the city’s south technology park;
» Approved conditional use for the Acre Restaurant, which will be located on North Gay Street beside the Hyatt House apartments;
» Approved conditional use for a Value Ride Auto Storage to be located on Opelika Road (Ham recused himself); and
» Approved donating a Ford Crown Victoria to the Farmville Volunteer Fire Department and a Dodge Intrepid to the Repton Police Department.
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