(11) Under what circumstances would you support tax credits or exemptions to
promote economic development, and for what kinds of businesses?
Alston: We are in crisis mode as it relates to economic development in this city. Therefore, these are the circumstances under which tax credits or exemptions should be considered. The specific type of business (assuming it is legal and environmentally competent) is not as important as the potential impact which the business could have on the local economy. That said however, we do need to encourage the establishment of businesses which will provide “high end” wages.
Gupton: I would not support tax credits for retail businesses. I think it is reasonable and necessary to give manufacturing and industrial businesses tax incentives based on the number of jobs and the pay scale for those jobs.
Harper: I would support tax credits or exemptions to promote economic development if analysis of income to the city going forward would provide a measurable, positive return on investment – this analysis should include impact on employment, schools, Medicaid, social services, and police and fire services. Also, part of the analysis should include if tax credits or exemptions are needed at all to attract certain businesses – for example, if they have studied market conditions and decided that we are the place they want to locate for marketing reasons, no incentives are necessary.
Daeke: I’m not sure we are in a position to support any type of extensive tax credits or exemptions. Only if a deal (read contract) is signed giving exact figures on jobs and additional revenue growth would I favor this. If such deals were initiated, priority would be for high wage jobs with benefits. This would exclude retail.
Yount: First, tax incentives should not be offered to retail businesses unless a complete market analysis proves that the municipality will generate money and will not lose any money on the deal during any fiscal year that the deal is in place. For manufacturing and industrial employers, a policy on incentives should be set with the county’s input. Elected officials should set this policy and the incentive policy should be fair to past, present, and future stake holders. This policy should dictate that workers are paid a fair living wage for a full weeks work with benefits so that our Medicaid costs are not impacted. The leaders of our community should have a united voice in presenting this policy and not alter the conditions or jump through hoops for special interests. The tax payers should have input into the policy as well. With a combined buy-in, future prospects will always know where they stand and where we stand. No one will have the authority to offer more than the policy allows from our tax dollars.
Wester: Sometimes the best offense is a good defense. We need to protect our position as the regional retail leader. Retail should be considered economic development as it creates jobs, adds to our quality of life, and contributes a significant amount of sales tax revenue to our local economy. I personally do not like incentives, but they are a necessary evil if growth and retention are to occur.
We also must cooperate with Vance County to make sure that the proper infrastructure is in place to attract industry. This should also be considered an incentive. I believe that when all the facts and figures are put on the table, sound policy will follow. Obviously, the return must justify the investment. There is not a cookie-cutter approach that will apply to all situations, and our goal should be to get into a position where absolutely no incentives are necessary. I believe it will be wise to involve the newly formed Henderson-Vance Economic Partnership in this issue and listen to their recommendations. We may not always agree on what may need to be done, but we should never make decisions in a vacuum.