Published: May 24, 2006 03:37 pm      

Palestine council Ok's updated tax abatement policy

Palestine — City council members gave the green light to the Palestine Economic Development Corporation’s updated tax abatement policy Monday night, but not without some discussion over how much help to extend to new businesses.

PEDC Director Brian Malone told the council that the new version would allow the city to look at a wider range of businesses that could be eligible for tax abatement.

For instance, one change would allow hotels to be considered for abatement. Businesses still would have to add at least $500,000 to the value of their properties, and create at least five jobs, to qualify for abatement, according to the policy.

“I’m looking at several other cities we regularly compete with,” Malone said. “We’re really in the ballpark. We’re not at a disadvantage, nor are we giving up more (with the changes). It gives a lot of latitude.”

Councilman Vernon Denmon Jr. expressed concern that the policy still would not extend the possibility of help to very small businesses in the downtown area.

“How is this abatement going to go for that business at $100,000?” Denmon asked Malone.

Malone replied that the tax abatements generally were geared more toward businesses that are more capital intensive. He also said that the city could run the risk of offering too much assistance to businesses that might not be able to live up to the abatement agreement, and the city would thus incur legal expenses in trying to regain some of the funds lost in the broken agreement.

Councilwoman Billie Dyer, who runs a bed-and-breakfast, said she would like to see the city pursue other avenues of assistance for small businesses besides the tax abatements designed more for larger operations.

“I would be the first person to say yes, to encourage the support of small business people, but there are other avenues,” Dyer said. “For small businesses, let’s help in other directions.”

Also during the regular session, the council canvassed the votes from the recent city elections.

In the District 1 race, incumbent Billie Dyer trailed challenger and former councilman Alan Russell, 12-15, after the early voting, but won the election at the polls on May 13, garnering 31 votes to Russell’s 9, to win 43-24.

In the District 3 race, challenger Jacques Bell led 14-10 after early voting, only to see incumbent Vickie Chivers surpass him on election day, 33 votes to 18, to win the election 43-32. Councilwoman Andrea Baird was unopposed.

Following the canvassing of the vote, Dyer, Chivers and Baird were sworn into office by Municipal Judge Bill Curley. Dyer was voted to serve as Mayor Pro-Tem.

The council also approved an ordinance to amend the electrical code, choosing to allow local electrical contractors to follow the national electrical code’s standards, which do not call for the use of conduit in commercial buildings.

In addition, the council approved the appointment of local real estate agent Mary Alice Largent to the Palestine Landmark Commission. Largent will fill Position 3, set to expire in 2007.

The council also approved the following appointments to the Electrical Board: Ira “Buddy” Morel, Position 1 (expires in 2008); Mark Henderson, Position 2 (2007); David Tidwell, Position 3 (2007); Kim Downes, Position 4 (2007); Jerry Toole, Position 5 (2008); David Mettaeur, Position 6 (2008); and Tim Lawson, Position 7 (2008).

In addition, the council approved the following appointments to the Library Board: Lynn Scribner, Position 1 (expires in 2007); Mike Thomason, Position 2 (2007); Fernando Varela, Position 3 (2007); Dr. Jason Page, Position 4 (2008); Shelly Parson, Position 5 (2008); Cad Williams, Position 6 (2008); Jack Selden, Position 7 (2009); Bonnie Woolverton, Position 8 (2009); and Wayne Sellers, Position 9 (2009). Sellers was exempted by council vote from the term limitations.

As part of the regular agenda, the council later approved an ordinance to set term limits for the library board, and make it an advisory panel, rather than a final decision-making board.

When asked for her opinion on changing the functioning of the board, librarian Carol Herrington said that she and the board were in favor of the moves.

“This very much reflects how they operate,” Herrington told the council.

Herrington also announced to the council that longtime library board member Sellers has been chosen by the Northeast Texas Library System to receive a special lifetime achievement award on June 6 in Garland.

Sellers, a former newspaper editor at the Herald-Press, has served on the library board for 39 years, and has previously received the prestigious Elizabeth Crabb Award for his dedicated service to libraries.

In other business, the council:

• APPROVED the minutes of the April 24th work session and regular meeting, the minutes of the April 27th special meeting, and the minutes of the May 8 work session and regular meeting.

• AWARDED to A&R Demolition of Del Valle the contract for demolition of substandard structures in the city.

• AUTHORIZED creation of a Plumbing Inspector/Code Enforcement Officer.

• APPROVED an ordinance authorizing budget adjustments and amendments.

• APPROVED a resolution suspending the effective date of the 2005 Gas Reliability Infrastructure Program (GRIP) filing for 45 days.

• DELAYED consideration of a resolution authorizing the Cities Aggregation Power Project Inc. (CAPP) to purchase power for the city’s future needs, upon recommendation of City Attorney Ronald Stutes.

• AUTHORIZED the purchase of security cameras for city hall, and their installation by Troxell Communications.