Hinds County Supervisors approved a tax increment financing plan to support the King Edward Hotel renovation at a meeting this morning. The plan requires the county to cover 85 percent of any increase in property taxes due to the development for the next 20 years or up to $2.8 million, whichever comes first. During that period, the King Edward developers, HRI Watkins, will pay only 15 percent of any increase in property taxes as the area rises in value.
The Board of Supervisors voted unanimously for approving the TIF plan, but only after District 2 Supervisor Doug Anderson protested the county's large contribution.
"I just think this is a heck of a time for us to participate in a TIF at 85 percent, when the county is laying off workers, and a new proposal is to lay off additional employees," Anderson said. "I just think we are digging one heck of a hole in our budget in terms of financing this at 85 percent."
Anderson asked why the county had not sought a lower contribution of 50 percent, which would have allowed it to use more of the added tax revenue for other purposes.
"I know that when the King Edward people came to us, it was strongly suggested that they needed our help," Supervisor Peggy Calhoun told Anderson.
Board President George Smith pointed out that the county has approved even higher contributions for other developments. For the Target store on County Line Road and the Wal-Mart on Highway 18, the county covered 100 percent of tax increases.
"I think we are helping ourselves," Smith said. "(The King Edward is) getting ready to have a soft opening this month, which means they are going to start hiring employees. Those employees may be buying homes."
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