The Logan County Public Works Authority (PWA) agreed to a $150,000 tax increment financing (TIF) with Love’s Travel Stop, a similar approach the City of Guthrie agreed too in assistance with a public sanitary sewer system east of Interstate 35.
Article continues following video, which the topic begins at 5:45 in the video. To view the conversation during the PWA meeting click here for that video. The topic of this conversation begins at 12:45.
County Trustee’s Monty Piearcy and Mike Pearson approved the agenda item, while Marven Goodman voted against the TIF district, which is a public financing method that is used as a subsidy for redevelopment, infrastructure and other community-improvement projects.
The TIF was unanimously approved from a review committee making up of representatives from Guthrie Public Schools, Meridian Technology Center, Logan County Health Department, Guthrie EMS and Logan County (District 2 Commissioner Pearson).
Goodman says Logan County is not a beneficiary of the TIF.
“I don’t support this. It says whereas the county is the beneficiary, I don’t believe the County is the beneficiary. I believe this is being done to help extend the City’s (of Guthrie) sewer service across the street so they can provide services.” That is tax money that would otherwise be going into the County’s coffers, not to payoff a bond to extend city services across the highway,” Goodman said before the 2-1 vote.
Love’s funded the construction (approximately $450,000) and extended the sewer line from their store’s location on the west side of I-35 to the new facility on the east side. In return, the City, and now the County, will provide funding for a portion of the infrastructure extension. Related story: City and Love’s Travel Stop agree to 5-year sales tax rebate
With the addition of the sewer line to the east side of the interstate, city and county officials are now hopeful future businesses are willing to relocate to the growing corridor with the added public sewer line.
Dan McMahan, an attorney specializing in TIF districts and whom was hired by PWA, says the County will reimburse the $150,000 from the increase in ad valorem taxes generated in the TIF district.
“All we are doing is taking the increase in taxes that are generated in that district and repaying Love’s for a portion of the cost of the public improvements that Love’s has constructed. The benefits to the public far out-weigh the $150,000.”
McMahan, who says Love’s and the Guthrie Travel Stop did not receive tax breaks, are hopeful to payoff the non-interest note in three years. If not, Love’s will receive all transactions from the TIF ending on Feb. 1, 2022. Payments come from the increase in ad valorem from Loves, Guthrie Travel Stop and any future business that go within the TIF (I-35 to Midwest Blvd on the north side and I-35 to University Rd on the north side). Estimated numbers show approximately $42,000 in assessed value between the two current businesses in 2016.
Officials go on to say the TIF does not affect taxpayers and that they would pay the same amount of taxes if there was not a TIF district.
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