Closing plant wins OK for tax break|[06/17/08]
Published 12:00 am Tuesday, June 17, 2008
Simpson Dura-Vent, which has announced it is closing its local plant by late 2009, on Monday was handed a tax exemption by the Warren County Board of Supervisors, but it will be about 80 percent less than expected because equipment has been moved out.
After the Vacaville, Calif.-based custom home-venting system manufacturer applied in February for a $3.8 million exemption on machinery purchased in 2006, further inspections by the Tax Assessor’s Office found most higher-valued items were no longer on the premises, Deputy Tax Assessor Jim Agent told supervisors.
“There was only $788,347 in equipment left out there,” Agent said, adding the largest of which was a welding pipeline.
A separate, $2,324,417 exemption request on personal property was approved.
In January, the company announced a phased closing of the facility at Ceres Research and Industrial Interplex due to a downturn in the housing and real estate market nationwide in favor of expanding their West Coast home base. Later statements by company executives placed some blame at the feet of the county board for not approving more tax incentives, such as a break on inventory.
Supervisors contended the firm applied too late to receive any exemptions for equipment upgrades and expansion, breaks allowed by state law. Under current conditions, city and county levies are waived while school taxes are left alone. Agent said paperwork was submitted in November 2007 and then amended in a list submitted by the company Feb. 15. State law states such exemptions expire within a year of a recipient business closing, a requirement supervisors put into action Monday when they rescinded a string of existing exemptions granted to the CalsonicKansei plant at Ceres which closed in 2007.
Both exemptions passed on narrow, 3-2 votes – creating uncommon political bedfellows in the process.
District 3 Supervisor Charles Selmon, a past Vicksburg mayoral candidate and a possible candidate in 2009, had queried industry executives in the past on local job figures when exemptions were up for a vote. This year, Selmon voted for the exemption and was the lone vote supporting multimillion-dollar tax breaks for Cappaert Manufactured Housing and Armstrong World Floors.
“We have to be progressive in economic development,” Selmon said, reiterating support for further study on whether the county should give more thought to more types of tax breaks for area businesses.
The two companies asked for breaks on inventory and for free port warehousing, which is more generous the more goods are shipped outside the state. Agent said figures from Armstrong showed only 8.6 percent of its goods stay inside Mississippi.
District 1 Supervisor David McDonald, who indicated early he would support the tax break to hold out any shred of hope the plant would operate past 2009 “at least on a limited basis,” held true and joined with District 2 Supervisor William Banks in providing a crucial yay vote.
“We give it (exemptions) to everybody else,” McDonald said later, alluding to real-dollar impacts of Simpson Dura-Vent’s exemption to the tax rolls estimated at about $30,000. “If the (equipment) is not there, we won’t tax them on it anyway.”
By contrast, usually reliable, pro-business supervisors didn’t see the need to sustain the tax break for the company, which in its application stated its employment had dropped to 173 from a high of 350 in recent years. Agent said inspections showed less than 100 were actively employed at the scaled-down plant.
“I want to see manufacturing stay here, but I can’t see giving an exemption for equipment not being used,” District 4 Supervisor Bill Lauderdale said, joined by Board President Richard George in voting no.
Simpson last received such a tax break in 2006, reflecting capital improvements made in 2005, for $1,530,841 in expenditures.
Cappaert’s $91,485 tax exemption was for similar improvements and was OK’d without discussion. Its inventory tax break request totaled $1,753,308 and Armstrong’s request for free port warehousing would have kept $2,040,590 off the tax rolls.
Other companies receiving exemptions included:
Cooper Lighting, for $1,777,872 in improvement-related and personal property tax breaks.
Falco Chemical, for $272,118 in improvement-related breaks.
PolyVulc U.S.A. Inc., for $245,432 in improvement-related breaks.
On the agendaApproved participation in interlocal agreements with the City of Vicksburg on three ventures.
One is the $1 million tax increment financing plan for Cypress Centre Marketplace. Under the terms, the county will pledge 50 percent of the increased real property taxes it would collect on the improved land to repay about $1.1 million in bonds for road construction and drainage on the hotel and retail development on South Frontage Road. City participation will entail pledging all its real property increases and being the main collector of the bonds. Initial contributions have been pegged at $485,000 by the city and $343,000 by the county.
Other pacts inked involved county funding at $35,000 of the commission that oversees the NRoute public transportation system and $18,968 on a Justice Assistance Grant for updated technical equipment for the Warren County Sheriff’s Department.
Following a brief closed session, made statements for board minute records relating to the operating times of the Kings Point Ferry.
One of three pilots on county payroll to work 12-hour shifts to commandeer the vessel, which takes vehicles across the Yazoo Diversion Canal to Kings Point Island in northwest Warren County, is unable to work due to illness, Board Attorney Paul Winfield said.
A complication arose in recent weeks when the county left the hours of operation at 12 hours per day instead of 15 because of the staffing problem, prompting a contempt of court ruling in a long-standing lawsuit in the 9th Chancery Court District by landowners on the island that have clamored for years for access.
Winfield said Richard George may take the stand in the case, which is without a judge at this time.
Currently, the boat runs from 6 a.m. to 6 p.m. In November, supervisors asked the U.S. Army Corps of Engineers to revisit building an elevated levee across the canal to replace the ferry.
Approved a $20,000 increase in the county’s request for state funds for resurfacing parts of Eagle Lake Shore Road and Tucker Road.
A $29,200 increase in local matching money was approved May 19. County Engineer John McKee said the change involved needed additional materials and higher costs for existing materials.
Approved a request from the Vicksburg Warren Humane Society for $82,144.78 marked for building a new outdoor kennel. Money was provided for in the county’s list of items in local and private legislation passed by the Legislature and signed by Gov. Haley Barbour earlier this year.
Approved a grant agreement with the Federal Aviation Administration to build parallel taxiways at Vicksburg Tallulah Regional Airport. The size of the grant will depend on federal funding of FAA, airport officials have said.
Reappointed four volunteer fire department chiefs.