.gif)
COMMISSIONERS COURT
Commissioners voted to table a tax abatement project from a wholesale distributor for a $32 million dollar development in Columbus at their latest Commissioners Court meeting last Monday, July 22.
Dallas Wholesale Distribution, the company proposing the project, presented Commissioners with their plans to purchase 55 acres and invest $32 million dollars into a development in the Columbus Business Park, behind Great Southern Wood Preserving.
Nathan Potter, CEO of Dallas Wholesale Distribution, spoke with commissioners of the company’s desire and preference to build in Columbus, highlighting the business park’s existence as an instant attractor and the location’s proximity to Highway 70 and Interstate 10.
Potter says the company plans on building a 400,000 square foot Class A building on the development site, and within three years of “scaling and growing” the business, intends on having 40 full time team member jobs.
“This business park is attractive to us because it already exists one and it’s close to Highway 71 and Interstate 10,” said Potter. “We are pro- posing to take that 55 acre site and invest $32 million dollars in both the land and the improvements. We are going to build a 400,000 square foot Class A building. Within three years, there is a period where the business has to scale up and grow. The trajectory is going well though and we are comfortable to say that within three years we will have 40 full-time team member jobs.”
Total improvements including the purchase of the land add up to $32 million dollars, with $18 million dollars in personal property. Potter tells commissioners the company have already spent $200,000 in “good faith” to work out this deal, showcasing their excitement and the opportunity to be in Columbus.
“We are excited about the opportunity to be in Columbus, and we would like to get started as soon as we can,” said Potter. “We have spent and put at risk about $200,000 so far, we have in good faith invested and spent capital on this.”
The commissioners recognized the company’s urgency but questioned the development’s value over time and the exact specifics of the tax abatement agreement. Judge Ty Prause raised whether the company would be open to a pilot program instead of the tax agreement, countering with a specific plan.
“What has been your history with your appraisal district as far as depreciation in value,” said Prause. “Over what period of time of your installation do we see that remain pretty flat? Instead we get X number of dollars from the individual or company that we enter that agreement with is purely a contract. We do not collect anything from the appraisal district and Dallas Wholesale have not assessed that value, at the end of that period of time, it just goes away.”
Prause emphasizes to Potter how “it certainly is not a no” and how they are not trying to go into anything “confidential,” reminding the company of their rail intake and suggesting the court discuss an alternative plan for value in regard to their appraisal roles.
“I’m not trying to go into anything confidential or business trade secrets,” said Prause. “But on the abatement agreements, the amount that would be abated if the court were to grant it, is that built into your business model? We bring in a lot of rails, 200 to 300 rail cars a year. We would like to have the opportunity within the next day just to visit with you all further about possibly a five-year pilot program in lieu of tax agreement. Obviously, it is a huge investment you guys are making into our community, 40 jobs sound wonderful and we need more value on our appraisal roles so we can continue to build roads and bridges and the county can operate.”
