Columbus City Council unanimously approved on Tuesday a resolution of intent for the issuance of tax increment financing bonds of up to $4 million for development at Lee Middle School.
The Golden Triangle Development LINK has partnered with the Columbus Redevelopment Authority to market the former school campus at the corner of Military Road and 18th Avenue North for private development. The CRA purchased a one-year option from the Columbus Municipal School District in July for the nearly 15-acre property.
LINK Senior Vice President of Economic Development Brenda Lathan presented the resolution to the councilmen Tuesday. She said a similar resolution will go before the Lowndes County Board of Supervisors at a later date.
If supervisors approve the resolution, Lathan said the city and county would be prepared to issue up to a combined $4 million in TIF funding, if needed, if a developer chooses the site for a commercial or residential project.
TIFs can be used for public improvements at a site, such as road or water/sewage. Lathan said the developer pays for the project up front, and the TIF bond money is used to reimburse the developer for the cost of approved public improvements. Then ad valorem and sales taxes generated at the new site go toward servicing the TIF debt. School district taxes cannot be pledged to service a TIF.
Lathan said Tuesday’s resolution of intent does not mean TIF bonds will be issued. She said it simply lays more groundwork for the LINK and CRA to attract a developer to the site.
“We’ll issue a (request for information) within the next month and that’s when we’ll know how much interest we have in it,” she said. “We actually have some local people who are interested, but we’ve got to meet with them and make sure they understand what’s expected of them.
“It’s not a situation where someone can just purchase it and let it sit there,” she added. “There are going to be time limits on what has to be done… or it would revert back to the redevelopment authority.”
Lathan said the city and county would have to issue another resolution to actually issue TIF bonds. After that, she said, each entity would hold public hearings before the funds are dispersed.
The Columbus Municipal School District board approved a $1 option for CRA that’s good through July 20, 2017. CRA can extend the option through July 20, 2018 for another $1.
Lee Middle School closed in 2011 when students moved to Columbus Middle School.
‘Something to benefit all the citizens’
The old Lee Middle School sits in Ward 6, which Councilman Bill Gavin’s represents. He said he thinks the TIF will be a helpful tool to attract a development to the site.
“There’s a good bit of land there in a good spot that’s close to the bypass,” he said. “The land is in good shape. Anything we can do to get projects to help the city grow, in the long run, is very beneficial to the city. …I do think that a TIF would be a major player to help attract something to benefit all the citizens of Columbus and Lowndes County.”
Ward 3 Councilman Charlie Box said Lee Middle School is one of the city’s most valuable sites for attracting developments.
“That’s going to be a tremendous site for somebody,” Box said. “I think it might be very important to the development of the city. We need something here really bad. We’re doing really good with restaurants and small stores. We need a retail site, and I think this could be food for getting one.”
Ward 5 Councilman Stephen Jones said a development could be very beneficial for the Columbus Municipal School District, which would receive new tax revenue. He said Lee Middle School, as is, does not generate any taxes.
“Sitting there the way that it is, it’s of no value to anyone,” Jones said. “It makes the city look bad and generates no tax revenue.”
Millage rate set
The council also approved the city’s millage rate for fiscal year 2016-17 after a public hearing on the budget during Tuesday’s meeting.
The city’s property tax rate will remain 43.69 mills, Chief Operations Officer David Armstrong said. CMSD’s millage rate will also hold steady at 61.39, as will the overall millage rate of 105.08 mills.
Councilmen will meet at 5 p.m. Tuesday to approve the city’s FY 2016-17 budget.
Alex Holloway was formerly a reporter with The Dispatch.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 41 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.