The Oktibbeha County Board of Supervisors voted 4-0 Monday to select the Golden Triangle Development LINK’s large industrial park option — 400 acres near the Highway 82-Highway 25 juncture — as a potential development site and directed the organization to prepare a $7 million bond intent notice for the project.
The fate of the industrial park and its associated bond issuance now rests with city aldermen, who are expected to decide which option to pursue and, more importantly, how much funding to allocate toward economic development later this month.
Supervisors hope the city partners with them on the project and matches their funding pledge.
The city is not scheduled to address industrial park options at today’s board of aldermen meeting. A future discussion with LINK officials could be scheduled at its May 17 meeting.
Early county estimates show a 15-year debt service plan for a $7 million bond package could necessitate a 1.8-mill property tax increase, while a 20-year plan would require about a 1.48-mill tax hike.
One mill brings in about $327,000 to the county coffers. Comparatively, Starkville receives about $224,800 per property tax mill.
Previously, both boards each pledged $5 million toward developing the Innovation District before the LINK abandoned the project due to costs and delays associated with clearing the site of potential cultural artifacts.
District 1 Supervisor John Montgomery, who made Monday’s motion, said the LINK’s proposal represents “the best option on the table” in terms of bringing large-scale industries to Oktibbeha County.
District 4 Supervisor Bricklee Miller abstained from the vote since the land involved in the LINK’s second proposal — developing 16th section land south of George M. Bryan Airfield in Starkville — is owned by her family.
“We need a product we can sell, and this location — the plans to develop power and gas — is the best option moving forward,” Montgomery said. “It’s something that would service this area for years and years to come. I don’t like having to incur a tax burden — as a county, we’re good stewards of taxpayer money — but this project is an opportunity where we’ll spend some in the beginning but make more back in the end. You have to have the forethought and be proactive to reap the benefits of the future. I ran on a platform of looking at economic development more seriously than it had been in the past. I know there will be some blowback and some people will be upset at this, but this is an opportunity that can’t be missed for our area.”
The ‘game changer’ on 389
The LINK first unveiled the first industrial park option in March.
Dubbed “the game changer on 389” by LINK Chief Executive Officer Joe Max Higgins, the Strange, Stanley and Waldrop properties are situated north of the Highway 25-Highway 182 bypass and east of Highway 389.
Higgins’ March presentation revealed the almost 400-acre site is 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 future expansion.
The estimated $30 million includes $14 million in commitments from the city and county, and outside costs for infrastructure improvements. While an estimated $10 million is needed to extend pipes and solve the area’s lack of natural gas infrastructure, Higgins said 4-County has committed to a $4 million, 60-megawatt investment at the location.
Additional work could be required to clear the property of cultural resources, Higgins said in March. If both the city and county commit to the project, Higgins previously said property owners must commit to reducing their selling prices as to offset the cost of clearing the land.
The combined properties are under option until July 31, and agreements can be extended another six months, Higgins previously said. Mitigation efforts cannot begin until the properties are purchased.
Other options still on the table
Despite the county pledge, city aldermen could still choose to move forward with one of two other industrial development options — or both — previously pitched by the LINK.
For about $6 million, the two boards can purchase Starkville-Oktibbeha Consolidated School District-controlled land south of the city’s municipal airport.
The proposed development district is about 200 combined acres. Higgins previously said local government can buy 100 acres from the school district for industrial purposes and also utilize available, cleared property north of acquisition zones.
In this scenario, the city and county would each be on the hook for projected $3 million bond issuances.
The LINK’s third proposal would simply clear a large number of trees from Cornerstone Park’s undeveloped areas and have officials sit back and wait for a pledged electrical capacity increase in 2018.
Since the industrial park is county owned and infrastructure is in place, a small investment — $225,000 — for clearing and grubbing efforts would be needed from supervisors and aldermen.
While city officials previously showed favor of supporting both the second and third options, Mayor Parker Wiseman said the 16th section land plan “presents the best and most cost effective path forward.”
“There are pros and cons to (the large industrial plan and the school district-owned option),” he said. “I would support either option a majority of our board would support. The important thing is to make an investment in attracting good jobs that pay good ages to this community. We simply cannot afford to do nothing.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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