By DOTTY NIST
At the Nov. 12 Walton County Board of County Commissioners (BCC) meeting at the South Walton Annex, a number of items concerning the area north of the bay included the commissioners discussing a tax exemption requested by Empire Truck Sales, a company locating at the Mossy Head Industrial Park.
New or expanding businesses are able to apply to the county for an ad valorem tax exemption under the terms of Section 196.1955 Florida Statutes. The BCC is required to take up the request and either approve or deny. In considering such requests, the statutes require the commissioners to take into account the number of jobs that would be created by the company, the average wage for the jobs, the capital investment to be made by the applicant, and other factors.
If the tax exemption is approved, the county may enter into a performance agreement with the business that includes requirements for reporting on terms agreed to, including that the company follows through with the creation of jobs.
The exemption had been requested for a 10-year period. District 5 Commissioner Cindy Meadows was of the opinion that was too long. She suggested three years at the most if the exemption were approved. Meadows observed that many cities and counties had approved such exemptions in the past and now found themselves “in trouble” due to those approvals.
Walton County Attorney Mark Davis pointed out that annual reports are required if an exemption is approved for a business. New software obtained by the legal department, he noted, would facilitate staff keeping up and ensuring compliance with the annual report requirement.
Meadows expressed concern as to who was eligible to apply for the exemption. She asked if a person with five or so rental properties could apply.
Davis responded that the applicant would need to be a new business or business that was expanding and would be investing in real property in the county.
Meadows questioned why an ad valorem tax exemption should even be considered, since Walton County’s tax rate is one of the lowest in the state.
South Walton County resident Art Miller reminded the commissioners that they were not obligated to grant this tax exemption. Miller said he had researched the issue and had found that tax exemptions are “almost never given to retail operations.”
Miller maintained that it would not be logical to grant a tax exemption to Empire Truck sales, since the business has already agreed to locate in Walton County. The company has purchased property at Mossy Head Industrial Park. Miller made the case that the only tax exemption “that makes sense” would be one enticing a company to come in.
Miramar Beach resident Don Riley echoed Miller’s remarks, questioning why the truck sales company should be provided with “a competitive advantage.” “It is a minefield,” Riley warned of the request. He urged the commissioners to study and rethink the request.
District 3 Commissioner Bill Imfeld responded to the citizens’ comments with the observation that “thresholds” were needed to ensure that the purpose of granting the exemptions were met in terms of job creation and investment by the businesses. He recommended deferring the request until appropriate threshold criteria could be put in place.
District 4 Commissioner Sara Comander reminded the commissioners that Walton County is competing for new businesses with areas such as Alabama, which offer companies significant financial incentives to come in.
“Let them go to Alabama…beaches are not as nice,” commented Driftwood Estates resident Alan Osborne. “Why should we waive their taxes?” he asked.
Returning to address the commissioners, Miller also questioned an appraisal obtained by the county that valued land in the Mossy Head Industrial Park at $20,000 per acre. Recent sales of property at the county-owned industrial park had been at this approximate price level, and Miller said it appeared that the appraiser had given the BCC the answer they “wanted to hear.”
County Administrator Larry Jones responded that the appraisal company had been hired based on its qualifications.
Miller clarified that he had just been saying that he questioned the appraisal company’s objectivity and that he did not see the findings as very credible.
Attorney Davis noted that a second appraisal by another appraisal company had been ordered.
Imfeld moved to table the tax exemption request.
Coming forward, south Walton County resident Bill Fletcher urged the BCC not to table the request but instead to deny it.
A vote was taken, and the request was tabled.
Pending action on the previously-discussed threshold criteria, the commissioners postponed consideration, as well, of a proposed performance agreement with Professional Products, a DeFuniak Springs medical equipment company that had been granted an ad valorem tax exemption in 2012 due to its $2.5 million expansion.
In other business, the commissioners approved an expenditure not to exceed $7,000 for purchase of a broadband unit capable of making Internet service available in a six-mile radius. Rick Wilson, who handles information technology for the county, explained that Internet service is lacking in many of the rural areas all over the county. The unit would be used for testing and would have the capability of serving the area six miles around the Walton County Emergency Operations Center in the event of an emergency, Wilson told the commissioners.
In August, the BCC had created a working group to research availability and solutions to providing broadband services throughout the county. Wilson, along with Steve Jaeger, Robert Nelson, and Angie Biddle, had been appointed to the committee.
In recent months there had been some friction between the county and DeFuniak Springs over interlocal agreements between the two local governments. On the agenda were a number of such agreements for which the BCC was able to consider termination. Jones’ recommendation was to terminate agreements regarding Gene Hurley Park and Harbeson Field and then sit down with the city to discuss a possible renegotiation of the agreements.
Other agreements involved waiver of landfill fees, the Communities for Lifetime organization, and collection of Proportionate Fair Share fees by the county on behalf of the city.
Meadows expressed a preference for working with the city first rather than terminating the two park agreements. Imfeld agreed, suggesting allowing 60 days for county staff to work with representatives of the city to resolve issues. Jones agreed to this plan of action.
The commissioners did vote to terminate other interlocal agreements, including the waiver of county landfill fees, which had been conditioned on the envisioned sale and demolition of the DeFuniak Springs City Hall about a year ago, a plan that had fallen through.
Also terminated were the agreement for the county to collect Proportionate Fair Share fees from developers, due to the city having terminated this program, and the Communities for a Lifetime agreement, due to the organization now being inactive.
“We certainly want to work with the city…we look forward to that opportunity,” Jones commented.
In other action, the BCC agreed to allow Garden Vault, a business retrofitting shipping containers for use in growing plants, to operate on a 0.92-acre parcel at the Shelter Road/U.S. 98 intersection east of DeFuniak Springs. On the recommendation of county planning staff, the business had requested a change in land use classification for the property from Rural Village to Industrial. However, the commissioners were reluctant to approve the change and instead voted to approve the use without a change in land use classification.
In addition, the commissioners voted to accept the transfer of the former Masonic Lodge property in Gaskin from the Walton County School District to the county. The property had previously been used as a voting place and will be available for that purpose if needed. It is envisioned for other community uses, as well, among those display of historic artifacts owned by community members.
Repair costs of $8,500 were approved for the building.
