Column for Aug. 14, 2008

I have heard for almost two years about a possible new large shopping center coming to town at exit 97 and Hwy 70 near JR's. The major story was on the front page of last week's paper about the proposed project. Originally, the rumor was that a Home Depot and maybe a Target store were coming. Recently, I have heard more rumors. As you may have read, the developer has made a presentation to the town council.

The developer mentioned possible tenants such as Target, Bass Pro Shop, Cabellas, JC Penney, and IKEA, along with up-scale restaurants and motels. Keep in mind that these are just suggested possibilities. I am all for such a development, so don't get me wrong. However, keep in mind at this point, the developer is selling the idea and soliciting to get $15 million or so in reimbursements from the town for infrastructure improvements.

Personally, I am dubious over the claim of a Cabella's. I would absolutely love to have a Cabella's nearby. I may want to live in one. However, one already was proposed for Four Oaks and that project crashed and burned. Cabella's announced that they were going to put one in to Richmond, VA and figured that one here would be too close to their other proposed location. I find that claim fallacious, however. One can look at the map of their existing locations on their web site and shoot holes through that philosophy. I am not going to drive three hours to go to a Cabella's if that is indeed their strategy. If they reconsider Johnston County because of a better location, highway access, and other development, then hallelujah. I would be thrilled with a Bass Pro Shops, as well.

Anyway, this development would certainly be good for the town for several reasons. First, the developer wants to be voluntarily annexed. Great. They would bring a lot of revenue for electricity and water, if development and subsequent tenants were to become Selma utility customers. The tax revenue would be wonderful, but there is a problem - the developer wants 60% of the sales tax revenues generated for 15 years plus a refund of the difference in property tax values between the property taxes now versus the value of the developed land. To me, this is the rub.

I have no problem with the concept that if the entire development and the subsequent businesses are going to be Selma utility customers, that the town needs to extend the utilities to the customers who would be using our services. That is no different to me than the idea of having to extend water and sewer to a subdivision that would be annexed by the town or when Cisco went in it present location.

I do not even have an issue with the concept of sharing in the expense of any other infrastructure such as roadway improvements that will mutually benefit both the town and the developer. I do not consider those things to be corporate welfare. I consider them to be mutually beneficial and the cost of doing business to service customers. I may not like the idea that a town is in business to sell products and services such as water and electricity that are available from private industry, but that is another discussion for another day.

I do, however, consider total reimbursement for all related improvements to be a corporate welfare program. Taxpayer dollars should not be spent on woo a development, especially in an area that they find to be enticing even without our monetary support. If the facilities that the developer is going to build and the prime location are so attractive to the businesses that were bantered about, then it should not be a large risk to the developer. Furthermore, it should add to his revenue and not be the burden of the town.


As a town, we can certainly assist with expediency of zoning, utility, and other regulatory issues. However, I do not believe in paying someone to come to our town, especially for fifteen years.

In the interest of fairness, however, there were previously offered incentives for development in town, such as on East Anderson Street. If we offered them to one party, we should extend the same offer to any other development planners that come along. I may not like it, but fair is fair. As I recall, the offer tendered for that proposed development zone was a tax break for five years, and that included property taxes only.

It will certainly be interesting to see what "develops" in this situation. I am all for development of fallow ground and expanding this area. I am dubious as to the claims that "as much as $500 million in sales tax is leaving the county each year to go to Wake, Wayne, Wilson and Nash counties." That sounds like an excessively high estimate. It is part of the sales pitch.

I do agree with this quote, though. "Dougherty added that Selma is unique in the county in that it is ideally situated to host such a regional complex. He cited I-95 and US 70 and major thoroughfares. He said Exit 98 is excellent for such a complex because it has great access. "There’s no other city right on the an interchange like this," said the developer".

Either way, I am looking forward to seeing the addition to the town.