[06/29/02]Citing fears that Home Depot will not last in Vicksburg, people who opposed the tax incentives being requested for the retail development called on city officials to commission an independent economic impact study.

“Is Home Depot going to be another Enron or WorldCom?” James Burnett asked the mayor and aldermen at a public hearing Friday.

Burnett was one of about 45 people who attended the meeting at City Hall Annex. Mayor Laurence Leyens said that a decision about the $900,000 tax increment financing request will be made next week.

Out of the 13 residents and business owners who commented, one favored the request. Most of those who attended the meeting were owners of local businesses that will compete with Home Depot.

Ergon Properties of Jackson is seeking the tax increment financing, or TIF, to fund public improvements at the site adjacent to Halls Ferry Park identified for a $17.7 development for the home improvement retailer.

But, Burnett, owner of MidSouth Lumber & Supply, said city officials should be concerned with the future of Home Depot. At a recent stockholders’ meeting for the company, investors heard that the company’s stock has dropped 18 percent over the last year while their nearest competitors has seen their stocks rising, he said.

“These things should be answered before they come into our community,” Burnett said. “We should have an independent economic study.”

Vicksburg resident Amy Lee also expressed concerns that Home Depot would end up like K-Mart or Battlefield Mall.

“I cannot see the reason for developing another wooded area that has the potential to be another concrete and asphalt eyesore,” Lee said.

Others who called for an economic study included local developer Richard Cowart, business owner John Martin, Greg Evans of Mississippi Lumber, and Karen Williams of Faulk’s Farm and Garden.

The TIF will be used for road improvements, traffic signals and utility connections off South Frontage Road. Funding will come from bonds that will be repaid out of increased taxes generated by the project.

Tax increment financing has been used before by local governments for projects including River Region, Vicksburg Factory Outlets and Wal-Mart SuperCenter. Former Mayor Joe Loviza, whose administration voted to grant the TIF for Wal-Mart, said he regretted that vote and now opposes the request for the Home Depot project.

“I do not think TIFs for retail businesses is a good idea because it puts our small businesses out of business,” Loviza said.

Steve Rowland, owner of Vicksburg Dental Laboratory, said that government needs to support local businesses, but that people will continue to shop at local shops even after Home Depot opens.

“People are going to develop in this town and we’ve got to embrace it or it’s going to go to Edwards,” Rowland said.

Rowland was the only speaker at the hearing who spoke in favor of the TIF, but city officials said that numerous e-mails and 25 out of 35 phone messages have supported the proposal. City officials also said that without the TIF, Home Depot might not come to Vicksburg, a statement contrary to the reason county supervisors gave for not supporting the project.

“They’re a multi-million company and they can’t afford this?” said Anthony Chiplin.

Part of the reason given by Leyens for supporting the development is to keep local shoppers in Vicksburg. The nearest Home Depot is in west Jackson, about 40 minutes away.

“There is no question that some businesses here locally will be affected, but that’s the nature of capitalism,” Leyens said.

Eric Biedenharn, speaking on behalf of the outlet mall, said that without the $600,000 TIF for that development, the strip center probably would have been built in Brandon or Crystal Springs.

But, local realtor Doug Upchurch said the city probably has no choice about granting the TIF because of precedent although he doesn’t support it.

“The gate’s open and the cow’s out and I don’t see where there’s much you can do about it,” Upchurch said.

The TIF request is estimated to reduce city property tax revenue from the development by about $75,000 to $100,000 over the next 10 years. Total income from the project is estimated to be $515,000 in real property, personal property and sales taxes.

Today, taxes on the tract are about $2,000 each year.

The project with Ergon is expected to create about 275 jobs. Phase I calls for the development of a 250,000-square-foot home improvement store. Phase II will include out parcels and a 50,000-square-foot shopping center on the Halls Ferry site.