Board approves tax break for UPS expansion

Project at Arkansas-side business expected to be completed this year

TEXARKANA, Ark. — During a regular meeting Monday, the city’s Board of Directors approved UPS for a state economic incentive program that will refund some of the company’s taxes as it expands local operations.

With Ward 5 Director Barbara Miner absent, the Board voted unanimously to certify UPS for the Arkansas Tax Back program.

The program provides sales and use tax refunds on the purchase of building materials, as well as taxable machinery and equipment, to qualified businesses. The local governing body must endorse a business for it to be eligible.

“This incentive is primarily used for the recruitment, retention of industrial development and distribution. We’re looking at approximately a $7 million

investment from UPS, and more importantly, the ability to keep these guys on the Arkansas side,” City Manager Kenny Haskin said.

Expansion of Texarkana’s UPS package center is early in the design and approvals phase, and further details of the project are not yet available.

“UPS anticipates the expansion to be completed late this year, in time to support the busy holiday shopping and shipping season,” a company spokesperson said, adding that any jobs that become available as a result will be posted at upsjobs.com.

In other business, the Board voted to place tax liens on six properties to recoup the city’s cost of demolishing substandard structures on them. Ward 2 Director Laney Harris cast the sole vote against the measure, questioning whether the city should be reimbursed for demolitions paid for with federal Community Development Block Grant funds. Harris requested that it be made clear in the future which demolitions come out of the Public Works Department budget and which are paid for through CDBG funds.

The Board also voted unanimously to approve condemning seven buildings in the city, at 1209 Ash St., 2625 Delaware St., 926 Grand Ave., 1502 Hilltop St., 5542 Old Blackman Ferry Road, 306 Prince St. and 402 Prince St. An eighth property initially listed in the agenda was removed before the meeting.

When the Board approves condemning a structure, notice is given to the property’s owner that they have 30 days to obtain a building or demolition permit. If the owner fails to do so, the city may proceed with demolition itself.