A legal challenge against a recent zoning change, implemented by the Starkville Board of Aldermen, will delay the development of a 360-acre industrial park, Golden Triangle Development LINK Chief Executive Officer Joe Max Higgins confirmed Friday.
A bill of exceptions against the Jan. 3 rezoning order was filed in Oktibbeha County Circuit Court Friday by Laura B. White, Margaret Copeland, Mary S. Bell, Bettye Bell and LMK LLC.
The Bell family, including White, owns properties adjacent to the proposed industrial park, located near the intersection of Highways 182 and 389. White and LMK are both listed as parties in another bill of exceptions filed against Starkville’s recently approved comprehensive plan, and the Mississippi Secretary of State’s business directory lists Larry W. Bell, Loren S. Bell and Mary S. Bell as LMK’s agents, officers and directors.
Until the legal dispute is settled, both Higgins and Starkville Mayor Parker Wiseman said the city and county will “pump the brakes” on the development process, which includes issuing a combined $14 million in general obligation bonds for property acquisition, cultural resource mitigation efforts and infrastructure improvements.
Higgins said he was hopeful the legal process would take no more than six months to conclude. If the court system sides with the city’s rezoning order in that time frame, the six-month delay could push construction efforts from this summer to the summer of 2018.
The LINK has performed some due diligence in terms of potential cultural resources at the sites, enough of which Higgins said the group “has a handle on what needs to be done to satisfy everyone.” Other work, however, will remain in limbo until a ruling is delivered.
“We were hopeful we would be into the construction of water, sewer and roads late this summer, but now we’re in a waiting game,” he said. “We were confident about marketing the site beginning in July — putting a ‘For sale’ sign out there and getting nibbles over the next few months — once construction was ramping up, but that’s probably going to be delayed a year now. If we get an answer in six months, we’ll be six months closer to winter, which impacts what you can do in construction. The thing is, we’re not going to buy any property until we know we can use it.
“I’ve told everybody that’s working on this project, from Neel-Schaffer to (other outside contractors), to pump your brakes. Don’t wad up the project and throw it away. Just put it on the corner of your desk, and go to work on another project,” Higgins added.
A six-month delay won’t affect the city’s ability to issue bonds, the mayor said, since the intent notice does not expire until 2018. A delay, however, could mean a new administration would be responsible for their issuance, since the current term expires June 30.
“We’re confident in our legal position. Hopefully this issue will be resolved as soon as possible,” Wiseman said.
But what if the legal process stretches out across a year? Higgins said the LINK might have to re-evaluate the project if long-term delays or an adverse ruling materialize. Other facets of the project, including major investments by Atmos Entergy and 4-County Electric Power Association, could change depending on market conditions.
“The Atmos project is monumental for Oktibbeha County because it benefits the county as a whole, and the same can be said about getting 4-County on board,” Higgins said. “These commitments are infinite, though. Businesses’ needs and plans can change.
“The business community and city and county leadership have put themselves on the line by backing a tax increase for this project, but the property owners have their legal rights, and the court has the right to decide. If circuit court says the Bells win, then I think there’s a chance you look at it and say it’s in our best interest to take the result. I’d hope the Bells would do the same thing if the court rules for us,” he added. “If the court says ‘no’ to us, then we’re going to have to take another look at everything.”
Aldermen voted 6-1 earlier this month to approve the rezoning.
Ward 3 Alderman David Little called the project’s delay “unfortunate” but said he is confident the city will prevail in the litigation.
“I believe that this project is critical for the city and Oktibbeha County in our efforts to bring manufacturing jobs into this area. These large developments will ultimately help reduce property taxes on our residents and local businesses,” he said.
Only Ward 6 Alderman Roy A. Perkins opposed the matter.
Though Perkins voted against the rezone, he said he did not oppose bringing an industrial park to Starkville or Oktibbeha County. However, he said the city had not met its legal burden of proof to rezone this particular property, which was annexed into the city limits in 1998.
State law, he said, mandates that rezones can occur when there is an error in the original zoning. If not that, then there must be a change in the character of the property and a compelling public need for the rezone.
“(The city) has acknowledged there is no error in the original zoning,” he said. “And there is no clear and convincing evidence, as determined by law, that there is a change in the character of the neighborhood to the extent of justify(ing) rezoning. …I was born and raised in that area. This property has always been rich farmland.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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