Waynesville courts mystery tourism business
A developer is planning a
If the project comes to fruition, it will have a positive impact on
"The way I look at it, it isn't really costing us anything out of pocket," Alderman
The sacrifice by the town -- namely giving up a chunk of the property taxes for six years -- is a worthwhile trade-off, aldermen decided.
"If you don't do anything, you may not get anything, and then not have that tax base anyway," Roberson said.
What we know and don't know
Hites doesn't know many specifics about the project himself. Developers of major projects, particularly if they involve a national or corporate brand, don't want word to leak out about a site they're considering until they're ready to announce -- usually for competitive reasons.
"This is very normal that the client wishes to remain anonymous," Hites said.
Hites' own knowledge of the project is on a need-to-know basis at this point.
But Hites does know a couple of things that he's not allowed to reveal.
Hites obviously knows who the developer is, because they have spoken several times. However, he doesn't know what the specific business is, because the property developer constructing the project is a third-party representative.
Hites also knows what tract of land it would be built on, but can't say.
There are a few clues about the tract, however. The site is currently vacant. It is inside
But the most revealing tidbit about the site is this: it shares a private entrance road currently used by two other businesses.
That last clue came out during the incentive discussion at the town board meeting last week. The developer has asked the town to take over maintenance of the private entrance drive as a public street should the project come to fruition.
Hites told the town board there are two other business that use the entrance road. If a third one was added, it would meet the threshold to be incorporated into the town's public street system anyway.
"So their request would follow your normal policy. That wouldn't necessarily be an incentive. They have a right to ask for that," Hites said.
How the incentive will work
The developer estimates the project will come in between
The biggest merit of the project, however, is the ripple effect it will have for the local economy -- what Hites called a "balloon effect on other businesses."
The incentive is a make-or-break factor for the developer, according to Hites' assessment of the deal. The project would get a grant each year for six years equivalent to 80 percent of its property taxes, based on a property value of up to
The land itself can't be counted as part of the
"We would still be realizing revenue for the entire term but just less than what we would have realized without the incentive," Alderman
So what's the town getting in exchange? The project will result in 15 jobs with an average salary of
"We call it a 'claw back' contract, where they have to meet the guidelines you have set and if they don't we can 'claw back' the incentives you've granted," Hites said.
That begged the question: how would the town know the number of employees and their average salary?
"How do we analyze their employment promise?"
"The town has the right to review their books," Hites replied.
As a side note, while the average wage of
The
Hites said there are criteria that must be met when a local government grants a private incentive deal.
"Does the increase of
The town board vote was unanimous.
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