Commissioners OK grant for shopping center

Mar 6, 2010 — High Point Enterprise

David Nivens

Mar. 6, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- GUILFORD COUNTY -- County officials approved a $124,000 incentive grant Thursday for a Greensboro grocery shopping center after the new program survived a death vote.

The Guilford County Board of Commissioners approved the three-year grant on a 7-2 vote following a public hearing. The small business incentive is linked a $6.2 million investment in the new Lowes Food shopping center.

A motion to stop the program failed by a similar margin, with Commissioners Paul Gibson and Kirk Perkins voting to kill it. The two Democrats also voted against the grant. Republican Commissioner Billy Yow abstained because his water well-driling business has worked for the developers.

"This policy does not speak to jobs," Gibson said. "And I don't think this is a small mom-and-pop business."

The Granite Church Street LLC project at 5820-28 Church Street would create 64 full-time jobs, down from an initial estimate of 164.

Perkins feared a hit on the tax base.

"If this is done over and over, it could amount to real money," Perkins said.

Republican Commissioner Steve Arnold of High Point, who sponsored the program last year, said the business would not receive the grant for months and that commissioners could later kill it.

"This will come back to us after Jan. 1 after the tax director determines the tax value," Arnold said. "This is not an ironclad agreement. The board can change it later."

Arnold also lobbied commissioners to approve $1.3 million for the program the board approved last October following some legal wrangling to avoid the appearance of illegal tax rebates.

"This is a rebate," Perkins said, "because the business pays the property tax and then gets money back."

The small business incentive plan offers a tax break based on a percentage formula linked to the improved tax base increase over three years. The investment grant for each of the three years is estimated at 0.7 percent of the actual increase in county property tax base over the amount of the property tax base prior to the improvements.

dnivens@hpe.com -- 888-3626

Grants

Most local governments offer roads, utility connections and other infrastructure support as economic development incentives, but few offer small businesses grants.

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