Tuesday’s Starkville Board of Aldermen meeting could shape the future of economic development for Oktibbeha County for years to come.
Aldermen could pick a future location for a new industrial park after county supervisors pledged $7 million earlier this month to develop almost 400 acres north of the Highway 25-Highway 82 bypass and west of Highway 389, the preferred site presented to stakeholders in March by the Golden Triangle Development LINK.
If the city and county cannot mutually agree on the site, LINK Chief Executive Officer Joe Max Higgins said his organization will consider vetting new sites outside city limits, thereby negating the need to partner with Starkville in the future.
Only one alderman — Ward 6’s Roy A. Perkins — has stated he will not support the proposed project because it will necessitate a tax increase.
Other aldermen, however, said they have not yet reached a decision on the LINK’s proposal.
Ward 5 Alderman Scott Maynard said he’s leaning toward supporting the Strange, Stanley and Waldrop option.
Mississippi State University — his fulltime employer — and the Greater Starkville Development Partnership Board of Trustees both came out in support of the project Thursday.
“Even if we choose (the Highway 82-Highway 25 area project), that doesn’t mean the 16th section project is off the table. That’s an attractive area for aviation-type industries that want access to an airfield. We could always try and capture that land if there’s an industry that wants it,” Maynard noted.
Both Ward 1 Alderman Ben Carver and Ward 4 Alderman Jason Walker said they are still studying the proposals and look forward to Higgins’ presentation and residents’ comments shaping the board’s decision.
“It’s always important to hear what the community has to say. We need to get everyone’s input on this,” Walker said. “My position hasn’t changed — I’m going to do what I think is best for the community. I’m going to wait and see what happens.”
Aldermen must carefully balance the project’s price tag and potential return on investment, Carver said.
“We have to look at where we want to be in 20 years and who we want to become,” he said.
The ‘Game-changer on 389’
Higgins first unveiled details of the roughly 385-acre Stanley, Strange and Waldrop option in March.
Dubbed the “game-changer on 389,” the complete project could develop 13 individual lots combining for 192.98 acres, a 28.3-acre site for a proposed speculative building, a 6-acre site for a 4-County Electric Power Association substation and a 157.3-acre parcel for a large industry or future expansions.
The owners of the collective properties represent a diverse group. LINK Chief Operating Officer Joey Deason said the Strange property (80 acres) is in an estate trust, and his group is dealing with a trustee; the Waldrop property (150 acres) owners consist of Dudley Waldrop and his brother; and the Stanley property (130 acres) is owned by multiple family members. The LINK is dealing directly with Michael Gagnet with the Stanley property, Deason said.
A fourth parcel — up to 25 acres for Tennessee Valley Authority right of way — is also listed on the LINK map.
Deason confirmed that property belongs to the family of Denny Daniels, a former District 3 supervisor candidate.
“We won’t know how much land will be required until TVA engineers perform a study to see where the tap into the transmission line will have to occur,” Deason said. “We used 25 acres as a place holder and actually expect it to be much, much less.”
The LINK’s March presentation revealed the entire project could represent $30 million worth of investment, but the organization seeks $14 million from both the city and the county.
Deason said the combined land acquisitions were estimated at about $6 million, but Higgins said landowners must lower their prices to offset the cost of clearing cultural resources from the area.
The properties will remain under a purchase option through the summer.
4-County previously committed to a $4 million, 60-megawatt investment at the location, and the LINK has discussed extending natural gas infrastructure in the county for an estimated $10 million.
The other options
Aldermen could go against the county and select the 16th section property south of George M. Bryan Airport as its preferred industrial park.
For about $6 million, the two boards could develop 200 acres south of established industrial properties close to Highway 12. Much of the property is under Starkville-Oktibbeha Consolidated School District Control, while approximately 20 acres — land that would be dedicated for an access road connecting to Highway 25 — is owned by District 4 Supervisor Bricklee Miller’s family.
In this scenario, the city and county would each be on the hook for projected $3 million bond issuances.
Issues with the 16th section proposal emerged after airport officials said an upcoming runway expansion project could prevent construction of an access road to the planned site.
While the LINK is studying the issue, Deason previously said his organization would advise aldermen and supervisors not to pursue the project if the access road cannot be constructed.
The potential snag has divided at least two aldermen. Maynard said he was hopeful the LINK could resolve the road issue without nixing the entire project, and Carver said the Federal Aviation Administration “could easily kill” the proposed development site.
The LINK’s third plan would have city and county officials spend $225,000 to clear and grub forested portions of Cornerstone Park, and then simply wait for a previous 4-County commitment to increase the fledgling industrial park’s electric capacity.
The power increase isn’t expected to come near the projected 60 megawatts at the Strange, Stanley and Waldrop site.
The LINK previously proposed using Cornerstone as a “shade-and-shelter” site where smaller industries could develop. Carver said he supports using Cornerstone as a secondary park.
Tax increases expected
No matter which project the city picks, tax increases are expected to follow any joint city-county economic development effort.
Early county estimates show debt service on a $7 million issuance would require almost 2 additional tax mills, County Administrator Emily Garrard said earlier this month.
Starkville officials have not forecast a specific tax increase to service $7 million in debt, but aldermen previously said a $5 million pledge for the Innovation District would require an additional 2 mills.
Depending on property reassessments, Maynard said, the city could possibly float debt service on the maximum issuance with 2.5-2.75 mills.
A memo issued by the GSPD board Thursday estimated a combined city-county tax hike would cost a Starkville homeowner an additional $44 per $100,000 worth of assessed property. A county homeowner would pay an additional $18 in annual taxes per $100,000 worth of assessed property, it estimated, since Starkville residents pay both city and county millage.
Starkville has $22 million in bonding capacity, the memo states, while Oktibbeha County has $30 million in capacity.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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