Column for Dec. 30, 2010

“This would have doubled our tax base overnight.” We have heard that sort of claim before, and I am dubious. We heard that sort of claim when Sysco was looking to relocated to Selma. We heard figures about how many jobs this would bring to the town and how many homes would be built to accommodate the influx of laborers. That didn’t happen with the construction and operation of the Sysco facility. Even the executive in charge of the Selma facility bought a house in Clayton, not Selma. When large companies want to come to a town with promises of an increased tax base, jobs, and more residents, towns tend to get excited. They tend to make tax concessions, agreements to provide infrastructure, and other tax payer funded incentives. Basically, it amounts to providing corporate welfare. I don’t blame a business for going with the location that is to its greatest economic benefit.

As you may have read, Electrolux was looking at Selma as a possible location to build a new manufacturing plant. Electrolux used to be known in America only for its vacuum cleaners. I remember when my parents bought an Electrolux with the 1976 Olympics sponsorship logo decal on it. The woman who sold the vacuum was doing door to door, in home demonstrations. But the Swedish manufacturer makes a lot more than just vacuum cleaners. They also make a lot of appliances that have been showing up more and more in stores here in North America.

I am all for wooing a large business like Electrolux to build its factory in town. Though I did not necessarily want an ethanol plant in Selma a few years ago, I was all for their freedom to build one. If an area has the ability to provide the water, streets, natural gas, labor force, and real estate necessary to sustain a company, then I am all for it.

I do get concerned, however, when promises are made and plants like the Dell facility in Winston-Salem end up closing shortly after opening. I also get concerned when promises are made to be able to provide the 500 acres necessary for development. I have to be honest and say that if I was a property owner in the way of construction, I may very well take the offer to sell my property and leave. Money talks. But not everyone is willing to abandon land that may have been in the family for generations or is making money for their family, such as farm or timber land. You are only going to find 500 acre parcels in what was or is farm land around here.

What disturbs me is the possibility of eminent domain by a municipality to take land from one private property owner and give it to another private entity such as a developer or corporation on the promise of higher tax revenue for the municipality. In one of the greatest travesties of American juris prudence, that very thing was the result of Kelo vs. the City of New London, Connecticut just five years ago. The Supreme Court upheld New London’s decision to take land from a private citizen and give it to a developer for the sole purpose of potential greater revenue from land usage. The irony is that the financials never panned out for the developer and the taken land sits empty. That is, to me, one of the biggest abuses of eminent domain and unethical decisions to ever come along. Then again, that sort of dilemma may never have been an issue had Electrolux determined to build in Selma. I am, however, always vigilant in looking at such potential government abuse.

The bottom line is that though I support industrial development, feel that it is overall a good thing for the area, and would like to have seen the factory come to our little town, I would want to see all things done honestly and ethically. I would want to see development that would not cause us to give away all of our potential revenue increases as tax incentives to lure a company here and would not want to see private lands taken forcibly and given to private business in the name of the public good. Hopefully, that is how things would have gone.

It is good to see that industry is taking notice of our little gem of a location. We have railroads, easy interstate access, land, and an available labor force. Selma has now been through this drill a few times over the years. Sometimes the effort has worked, other times not. Perhaps with this unsuccessful bid, Selma will be ready for future endeavors here and other businesses will take note of the consideration of Selma for the Electrolux plant and also give us a look. I also hope that the puffery of promises of benefits to the town do not fail to deliver, as in times past.