PEDC to crack down on incentive, abatement compliance
The Paris Economic Development Corp. board of directors plans to review the current incentive and abatement agreements to see who has complied with the information requirements. So far, it appears not many.
The information required usually includes property valuations for capital investments and payroll data to show job growth. Compliance has not been monitored very closely in the past, said Rebecca Clifford, the board secretary/treasurer. She has been working with Shannon Barrentine, interim executive director, since March to try to rectify that, including phone calls and emails every few weeks.
“Since they haven’t done it in the past, we’ve given them a little more time,” Clifford said. “We should not be sitting here in July saying, ‘Where is the information?’”
The PEDC board Tuesday put an Aug. 15 deadline on the submissions.
There are incentives committed to Campbell Soup, Harrison Walker & Harper, Paris Lakes, Skinner, Daisy Farms, T&K Machine, Bodyguard and Potters Industries. Campbell Soup, HWH, Bodyguard and Skinner have submitted information, Clifford said.
“The others we still have information that is missing,” she said. “We’ll need to get with them.”
There are also several tax abatements for industries, including Campbell Soup, Paris Warehouse, Kimberly-Clark, Paris Regional Medical Center and T&K. Of those, only Campbell Soup has submitted everything, Clifford said.
“You could say in a letter that failure to respond to this could mean an end to your tax abatement,” board member Don Wilson said.
It would be up to the various taxing authorities to actually cancel an abatement; the PEDC has no authority to do so on its own.
“You have no teeth,” said Edwin Pickle, the City Council liaison to the PEDC board. “You’re just the compliance monitor.”
He asked if PEDC could provide the information about who’s in compliance or not in the regular reports to the City Council.
“I guarantee the City Council would be interested in this,” he said.
Part of the problem is no two agreements are written the same, Barrentine said, which makes verifying compliance harder. Chairman Stephen Grubbs said the board may want to address that in the future.
Clifford said the job description for PEDC executive director puts the burden for compliance on PEDC, although at one time, city personnel took care of that.
“When Lisa Wright left in ’08, nobody has done compliance since,” Barrentine said.