After years of discussions involving multiple government and economic development groups, Starkville aldermen will vote on an industrial park site during Tuesday's board meeting. The time-sensitive vote will be preceded by a presentation of a preferred site by development officials.
Earlier this week, the Greater Starkville Development Partnership sent a resolution supporting the largest industrial park site option to Starkville Mayor Parker Wiseman and aldermen. Mississippi State University also issued a statement in support of the largest site, just north of the Highway 389 and Highway 82 interchange.
The Stanley, Strange, Waldrop property has been called the best site option by GTR LINK officials for future industrial development in Oktibbeha County. The site carries a price tag of $30 million to complete all improvements needed to transform the site, according to development officials.
To increase the value of the site, 4-County Electric would commit to building the $4 million, 60-megawatt substation at the proposed site, development officials said.
The site—approximately 384 acres—would include 13 individual lots totaling around 192 acres, 28.3 acres for a future "speculative" building, a 6-acre site for the planned substation and 157.3 acres for a large industrial future expansion option.
Around $10 million from project costs would be needed to extend natural gas infrastructure to the site. The removal of any Native American artifacts remains an unknown cost to project officials. The scope of the cultural artifacts at the site remains unclear, an issue that could cause project costs to increase.
But development officials point to the size, location and future capabilities of the site as reasons to move forward on the property. County officials preliminarily offered $7 million toward the site on May 2, which is contingent on aldermen making the same commitment.
16 Section option
A second option for the site near Highway 25 just south of George Bryan Airport ran into problems after the designs of an access road to the proposed site were found to interfere with FAA runway protection guidelines.
The FAA and aldermen previously approved a runway expansion at the airport.
The 120-acre 16 Section property just south of the airport could turn out to be a $6 million investment if purchased from the school district. The majority of costs would go towards acquiring the needed surrounding properties and building an access road to grant trucks entrance to the site from Highway 25.
"We have heard from the FAA," Wiseman said on May 11. "They has informed us that there is a problem with the access road and the current configuration. That's an issue the FAA and the LINK would have to work through further if [16 Section] is selected."
Both the Stanley, Strange, Waldrop property and the 16 Section site could result in a slight millage tax rate increase in the upcoming fiscal year, if selected by city leaders.
The largest site would need to raise the rate 2 to 3 mills, Wiseman said. The 16 Section site would only require a 1-mill tax increase.
Aldermen approved raising the rate by 1-mill at the May 3 meeting to secure the needed $2.4 million for the Starkville Police Department renovation project of SPD headquarters on Lampkin Street.
One tax mill secures just over $224,000 for the city. The current millage rate is set at 21.98.
If the largest site is selected, the annual tax increase for the park could be around $44 per tax bill for a house valued at $100,000, according to the GSDP resolution.
"While no one desires a tax increase for the citizens of Starkville and Oktibbeha County, we wholeheartedly believe this investment will provide a substantial return on investment to our entire community," the GSDP resolution said.
Either industrial park option would include the clearing of trees at the OCEDA-owned Cornerstone Park site, officials said.
Natural gas need
LINK officials have volunteered to work with the city on options to pursue a $100,000 natural gas infrastructure upgrade. There is currently only 100 MCF of natural gas available. This could be an issue should a new subdivision be built and require natural gas infrastructure, the resolution said.
The Oktibbeha County Economic Development Authority will own and maintain the park in the future after the site is complete. Either option would take 18 to 24 months to complete, the resolution stated.
Cotton Mill Marketplace TIF
City leaders will also vote on issuing a $4 million bond for the Cotton Mill Marketplace tax increment financing district, according to May 17 agenda.
Aldermen approved the TIF bond in 2013 for the shopping center near Mill and Spring Streets. Some shops in the center include: Salsarita's Fresh Cantina, Jimmy John's Gourmet Sandwiches, Insomnia Cookies, Hungry Howie's Pizza and Maroon & Co. clothing store.
A planned, 117-room Holiday Inn behind The Mill at Mississippi State University conference center is part of the TIF district, with retailers making up the rest of the development.
All retail space within the shopping center is full, according to Mark Nicholas, the project's developer.
"We had to redesign a few things on the hotel but we're hoping to start construction very soon," Nicholas said.
The stores within the district have generated $95,128 in sales tax revenue as of November 30, 2015, according to Mississippi Department of Revenue data.
In the TIF agreement, city and county officials pledged 75 percent of all new property tax revenues—$24,363 for the county and $10,406 for the city—along with the city agreeing to include 75 percent of all newly generated sales tax revenue in the district, or $142,692.
TIF funds—if approved by a municipality—provide basic infrastructure improvements in the designated district. Through TIF districts, developments are able to promote future economic growth in the area where funds were originally allocated after being listed on the tax registry.
Over the last 10 years, the city has used TIFs for multiple projects: Middleton Court, Cotton Mill Marketplace, The Mill at MSU and the in-progress Parker-McGill car dealership.
All four projects represent $13 million in pledges. Just over $500,000 was issued of the total pledges, a portion for the Middleton Court shopping center district.
If all the TIF funds were issued the city would be obligated to pay $102,000 in property taxes and about $954,000 in sales taxes annually, according to a January presentation by Wiseman.
"It is less common for a TIF to max out," Wiseman said in April. "In order for the TIF to reach maximum value, then all the property and sales tax growth has to materialize on the project. Typically those projections are aggressive."
Officials could make payments on the bonds in the upcoming fiscal year.
Not included in the 10-year total is the $1.5 million TIF bond approved by aldermen in January for the planned Academy Sports retail development.
SPD temp move
Aldermen will vote on approving Starkville Police Department staff to work in City Hall, 110 W. Main St., during the upcoming renovations to the department. On May 3, aldermen approved a slight millage tax rate hike to secure the needed $2.4 million out of a total $5.4 million renovation budget.
The project could be done by April 2017, officials said on May 3.
Officers could occupy a vacant portion of the building for up to 10 months, according to the May 17 agenda.
The motion was brought forward by Ward 2 Aldermen Lisa Wynn after discussing options with SPD and city staff.
Aldermen will meet at 5:30 p.m., May 17 at City Hall, 110 W. Main St. To view the complete agenda, visit cityofstarkville.org.