After adopting several economic incentive policies last year to spur business growth and relocation, Cobb commissioners have put on hold their approval of several proposals stemming from those changes.
Four of the five proposals, totaling more than $400,000 in county incentives, were withdrawn at Tuesday’s Cobb of Commissioners meeting because they are in District 2 and commissioner Bob Ott was absent.
But after a sometimes pointed discussion, commissioners also agreed to withhold the other incentive package on the agenda, for a planned office building in District 3 in northeast Cobb.
Last February, commissioners implemented the Special Economic Impact Program, which reduces or waives certain fees for companies that meet specific criteria for moving to or expanding in Cobb.
The companies must be in the financial, insurance and professional services sectors (including legal and accounting), as well as transportation, manufacturing and emerging technologies industries.
They also must add at least 150 jobs, invest $30 million or more in the county and pay average salaries at least 1.25 times the county average, as determined by the Georgia Department of Labor.
Qualifying companies also must agree to invest in Cobb for a minimum of 10 years or the incentives are revoked.
District 3 commissioner JoAnn Birrell and Chairman Mike Boyce were strongly in favor of a county incentive package totaling nearly $125,000 for Edison Chastain Office, LLC, which wants to build a 152,000-square-foot office building on Chastain Meadows Parkway near Bells Ferry Road.
“I think this is a good fit for this program,” Birrell said.
The incentives for Edison Chastain would cap development permit fees (proposed incentive agreement here). According to the Cobb Community Development Agency, Edison Chastain would invest $35 million and create 150 jobs once the building opens.
But commissioner Lisa Cupid of South Cobb questioned the wisdom of allowing breaks on fees for companies when the county has had major budget problems in recent years.
Community development officials estimate the break-even point for the Chastain Meadows incentives would be in 2022.
“I have grave concerns that five [economic incentive proposals] are coming up at one time,” she said, “when it might take several years to recoup [the incentive amounts]. At the same time, we’re struggling year-to-year to provide core services.”
Birrell responded that the facility eyed by Chastain Meadows was initially slated to be a warehouse. “Now it’s an office building. It’s eligible and it meets the requirements,” she said.
Boyce said such incentives will help the county enrich its tax digest, which is the best way to meet increasing service needs.
“Getting the resources depends on getting those companies to come here,” he said. “The [tax] millage rate brings in a certain amount, but [a growing] tax digest brings in even more.”
Cupid asked if the county was “doing things in a healthy way,” then tried answering her own question by saying that “I don’t see it at all.”
Replied Birrell: “If [qualifying companies] are not here, we’re not going to get the revenue at all.”
She agreed to withdraw the Edison Chastain proposal and asked interim community development director Michael Hughes for background information on the incentive program.
Two of the four incentive proposals previously withdrawn are in Windy Ridge Parkway area near East Cobb:
- Floor & Decor, which wants to relocate its headquarters from Smyrna with plans to add 420 jobs, is seeking $38,750 in savings in development permit fees (previous ECN story here);
- Bio IQ, a healthcare IT firm, is pledging to add 500 jobs over 10 years in relocating its national headquarters from California, and is seeking $85,830 in incentives with caps on business license and development fees (previous ECN story here).
Also seeking incentives are Home Depot ($213,750) for expansion in and around its headquarters in the Cumberland area, and construction firm Brasfield & Gorrie ($90,798) for renovating its new headquarters near SunTrust Park.
The county incentives are unrelated to tax abatements that the companies have sought with the Development Authority of Cobb County.
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