Give any tax rebates to small businesses

By Chester McConnell
Posted 8/21/11

It will be patently unfair for Daphne’s Council to approve a 1 percent tax rebate for New Horizon Retail Development’s proposed construction of the Academy Village site. 

Under the proposed agreement, New Horizon would receive $1.9 million …

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Give any tax rebates to small businesses

Posted

It will be patently unfair for Daphne’s Council to approve a 1 percent tax rebate for New Horizon Retail Development’s proposed construction of the Academy Village site. 

Under the proposed agreement, New Horizon would receive $1.9 million tax dollars to reimburse them for items that are essential to developing the Academy store site. The items include widening U.S. 90, installing a new traffic light and a water detention facility, all of which would be unnecessary if the Academy store is not built. So these items are not public benefits, but essentials for the development of Academy’s store.

Why should a large company like New Horizon/Academy get a 1 percent tax rebate? Academy has 130 store locations and posted $2.7 billion in revenues in 2010. Does Academy need or deserve $1.9 million taxpayer dollars from Daphne citizens? I say, “No.” They have sufficient funds to build their own site and buildings. Importantly, Academy also would be in direct competition with the many small local stores as well as several large ones like Dick’s and Walmart. The 1 percent tax rebate would give Academy an unfair advantage over its competitors.

If we residents of Daphne should be helping any businesses, it should be the hundreds of small, locally owned, “mom and pop” businesses that have served us over the years. Most of these small, local businesses have a difficult time financially. I believe that most of them would love to get a 1 percent tax rebate to help remodel their stores. Does our local city government have any kind of financial program to assist them?

I recommend Daphne’s mayor and council members initiate a program to give appropriate tax rebates to small businesses that would submit and implement a plan to remodel or otherwise improve their businesses. I also recommend that our city officials solidly reject the Memorandum of Understanding that would authorize a 1 percent tax rebate to the New Horizon/Academy proposal. Let’s make support of our local small businesses our top priority.

Chester McConnell

Daphne