During their meeting on Dec. 14 the Scottsboro City Council approved the final 10% of the 2021 budget and discussed various issues related economic development within Scottsboro.
The total city budget came to 22,783,826. Under Alabama law the City is not able to approve the entire fiscal year budget in one vote. Because of this, the city council had previously allocated 20,505,443.
During the work session the Council discussed a renewed development agreement with High Country Toyota.
The agreement would allow for a new dealership to be developed and retain the old property. It is expected to increase tax revenue and bring new jobs to the city.
The agreement, a 10-year sales tax incentive with a $500,000 maximum commitment from the City over those 10 years and a yearly $50,000 maximum commitment from the city, is designed to create an incentive to foster the continued growth of the dealership.
The tax incentive will be provided as a share of tax revenue after the business has met minimum tax revenue threshold paid to the city of $100,000.
The incentive is designed to encourage continued economic growth while protecting the city of Scottsboro's bottom line.
The yearly tax threshold for revenue share will carry over, but the tax required to be paid to the city before the incentive is available will reset each year. This means that if the city paid out only $40,000 in one year, the next year's maximum would increase to $60,000, but the dealership would still have to generate $100,000 in tax revenue in that year before the incentive is triggered.
The agreement, largely negotiated by the City Attorney Stephen Kennamer, functions so that the city would never provide more in rebates than it received in tax revenue.
According to a representative of the developer for the project, the project could begin construction as early as the first quarter of 2021.
The city of Scottsboro has used similar incentives to attract new businesses in the past; however, according to Kennamer, this will be the first such given to an existing business to foster continued investment in the city.
Hearings were held for alcohol license for Scottsboro Pitstop Liquor and Parks Avenue Liquors was conducted. Both businesses met all of the necessary requirements, the licenses will be voted on during the next council meeting on Dec. 21.
The council approved the final payment for a downtown feasibility study for a hotel. According to Katie Kirkland, the study found that a hotel with roughly 60 rooms would be economically viable in Scottsboro. Roughly $4,500 will be paid for the study.