Walmart plan in jeopardy
City votes down tax district
A plan to bring a grocery store to northeast Starkville faltered Tuesday evening when aldermen rejected a TIF plan for a Walmart Neighborhood Market.
The board voted 3 to 4, with Ward 3 Alderman David Little, Ward 4 Jason Walker, Ward 6 Alderman Roy A. Perkins and Ward 7 Alderman Henry Vaughn against the plan. The TIF agreement to build a connecting street from the grocery store to Highway 12 East was essential for bringing the 43,000 square foot store to Starkville, according to attorney and Walmart representative Christiana Sugg.
"Without this store receiving this incentive, it will not come to this market, it will not come here," Sugg said."
The failed TIF agreement of $1.35 million would have funded infrastructure improvements including water and sewer connections to the 7.5 acre site, with the added street and traffic signal. At the very least, developers would need $900,000 in tax rebates to build
the road, Sugg said.
After the failed vote, Ward 5 Alderman Scott Maynard brought forward a motion to provide $675,000 in TIF funds, which failed 3 to 4. Sugg suggested the motions be tabled, to no avail.
"[Walmart] has made it very clear to us that they have to have the road, and [$675,000] would not cover it," Sugg said.
Perkins said he could not support the TIF agreement due to the "significant loss of property tax and sales tax revenues to the city for
15 years." He has come out against all recent TIF agreements in Starkville, while Little, Walker and Vaughn have supported various TIFs in the past.
TIF agreements fund infrastructure improvements for future developments, and the city has used the option to fund various projects over the years including the Middleton Court and Cotton Mill Marketplace shopping centers, The Mill at MSU, ParkerMcGill dealership and the Academy Sports project.
Little said he could not support the project because he believed the proposed sales figures in the TIF agreement may ultimately end up
being transfer sales from Kroger, Vowell's Marketplace or the existing grocery store within the current Walmart—the city's three large grocery stores.
Ward 2 Alderman Lisa Wynn said she was "extremely disappointed" by Tuesday's votes. Earlier this week, county supervisors unanimously approved providing 50 percent of all increased ad valorem revenues in the district over the 15-year agreement. Walmart representatives were seeking a pledge of 50 percent of increased sales tax revenues, and through a 100 percent pledge by the city of all increased ad valorem revenues in the district.
"This is a sad night for the city," Wynn said. "I had hoped our board would do likewise. This is beyond sad."
This is the second controversy surrounding a TIF plan in less than a year, after a move to bring an Academy Sports store to Highway 12 West nearly failed after aldermen decreased the amount of pledged tax revenue.
Sugg said she would contact Walmart representatives Tuesday evening, but it is unclear whether a new agreement would be heard by aldermen.
"They need to get moving," Sugg said. "There's money in place, so they have to make a decision on the property very soon."