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Industry incentives backed by board
by Tom Joyce
2 years ago | 1302 views | 0 0 comments | 7 7 recommendations | email to a friend | print


Unlike a public hearing two weeks earlier on industrial incentives, nothing but praise greeted a pair of additional proposals Thursday night — including comments from three of the four candidates for Mount Airy mayor.

The fourth candidate, Deborah Cochran, presently a member of the city Board of Commissioners, also indicated her support when the board gave its unanimous approval to incentive packages that could create about 250 jobs.

“Complacency is the only bad decision that I see here,” local business owner Greg Perkins told city officials during the first of two public hearings regarding separate companies considering investing up to $9 million by launching operations in existing buildings here.

One of the yet-to-be-named entities, which proposes to hire 221 workers, was approved for a $58,000 incentives package Thursday night, while the other — representing 30 new jobs — was tapped for $19,000 to $77,200. If the companies do decide to set up shop, the money will be in the form of property tax rebates over a five-year period.

While Perkins, a past chairman of the Greater Mount Airy Chamber of Commerce, lamented the fact that localities must offer such enticements to attract companies, “the fact of the matter is, that’s the climate in which we live now.”

Similar comments were offered by the mayoral candidates.

Teresa Lewis, owner of Workforce Carolina, said she has watched company after company leave Mount Airy in the past 10 years, resulting in an unemployment rate now in the 13-percent range.

Lewis told city officials that she never has sought incentives for her business. “However, we are at a new time in the history of our city.” She urged “yes” votes on both projects.

As did others who spoke, Lewis offered support for each while only commenting during the first of the public hearings, which were a legal requirement due to taxpayer funds being linked to the incentives.

Gene Clark, another candidate for mayor who has spent many years in the furniture industry, stated that he believes incentives are needed if Mount Airy is to recover economically. The city must be “proactive” and “positive for business,” Clark added.

“This appears to be a very prudent and fair proposal for both of these companies,” he said.

Paul Eich, another candidate for mayor, had spoke against a $472,178 incentives package approved by the commissioners on Sept. 3. It includes 10 acres in Piedmont Triad West Corporate Park and other amenities for an unnamed company proposing to build a plant there which would hire 45 workers.

“These two incentives are significantly different from the one two weeks ago,” he said Thursday night. According to Eich, the city will be paying $11,000 per job under that package, which he said represents an attempt to “buy our way out of unemployment.”

“We need to play the game, unfortunately,” Eich said.

But he was extremely supportive of the latest two incentive proposals, particularly since the companies would use existing buildings — which Eich called “vital to the economic health of our community.” Having empty buildings, on the other hand, harms the city, he said.

“These incentives do make sense.”

After voting 5-0 for the latest incentive plans and then going into closed session for 15 minutes, the commissioners returned and approved a revised package affecting the company eyeing the industrial park site.

City Manager Don Brookshire said “a couple of minor changes” were involved, including a slight decrease in the company’s planned investment and an extension of the time in which it must achieve hiring and other requirements for the incentives.

Earlier discussion indicated that the company would make a total investment of up to $6 million.

Brookshire said after the revisions were approved that the action could expedite a “formal commitment” by the manufacturer.

“To me, this is encouraging,” Mayor Jack Loftis said, adding that the project seems to be “moving forward at a rapid pace.”

Park Work To Proceed

In another matter related to economic development, the commissioners approved spending $900,000 Thursday night to extend water and sewer lines to two prime sites in Piedmont Triad West Corporate Park.

That project had been discussed during a joint meeting of Mount Airy and Surry County officials earlier this month, and was formalized unanimously by the city Thursday night.

“We are at the point where the large sites we have at Piedmont Triad West are gone,” Brookshire explained. The two parcels that do remain, which are in the 30-acre range, lack utility service, he said.

At the recent city-county meeting, officials of both gave informal approval to sharing the cost of the project, which ultimately could reduce Mount Airy’s investment to $450,000. However, the county commissioners must take a vote before that becomes reality.

The city portion would come from cash it has on hand in the water-sewer fund.

Commissioner Dean Brown asked Thursday night if the expenditure would cause water and sewer charges to rise.

“We do not expect this to have any impact on rates,” the city manager replied.

Cochran also said she favored the move, citing a need to have “shovel-ready sites” available for new industries.

Contact Tom Joyce at tjoyce@mtairynews.com or at 719-1924.
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