Should Fayette County be offering incentives to bring in new industry?

Members and staff of the Fayette County Development Authority will meet with county commissioners next month to discuss that question and others about how the authority operates. The discussion will take place during the commission's regular work session, 3:30 p.m. Wednesday, April 7 at the County Administrative Complex.

Commission Chairman Harold Bost last week made a motion that the commission write to the authority calling for an end to incentives, but other members of the county governing body took a more cautious approach, suggesting more discussion before deciding on a change in policy toward the authority.

Bost presented figures showing that all of the new industry brought into Fayette in the last five years has paid a total of $1.8 million in taxes during that period, or about $360,000 a year. That's not enough, he argued, to justify offering tax and lease incentives to entice the industries into the county.

"Up to now we have had our foot totally on the accelerator," he said. "What I'm advocating is taking our foot off the accelerator for a period of time and let folks come here on their own."

"I think that we need to keep the door open," countered Commissioner Herb Frady. Commercial and industrial properties make up 23 percent of Fayette's $2.4 billion tax digest, he said, adding that continuing the balance between residential and other types of taxpayers is important.

"We should take a good look at this and see exactly what you're talking about doing and see what direction we can go with this thing," he said.

The county should continue its policy of considering each case individually, Frady argued.

"Let's not put a blanket moratorium on incentives until we see what it is," said Frady.

But, "If they bring it to us, the deal is already done," said Bost. The Development Authority works out incentive packages during its negotiations with potential new industries, seeking the County Commission's approval as the final step in the process, he said.

Actually, the commission has little influence on whether incentives are offered, said Commissioner Greg Dunn. The authority often sets up lease/purchase arrangements with new industries, so that they don't have to pay taxes on the land and buildings in the first few years, he said. "They can do that independent of the authority of the board," he pointed out.

As another type of incentive, the authority sometimes arranges the sale of bonds for new industries at lower than market rates. But, said Bost, "That doesn't cost the taxpayers anything."

Bost suggested the commission make a request that the authority "not offer any incentives without the board's approval beforehand," but Commissioner Glen Gosa said the commission should meet with the authority before doing anything.

"The numbers that I see indicate to me that we do need to continue discussions," said Gosa. "I would like to see a rebuttal by the Development Authority, to allow them to present their side of the issue before we make any moves."