DAPHNE, Ala.—The City Council 5-1 approved a motion to authorize Mayor Fred Small to enter a statement of intent with an unknown corporate financial services center; the measure means that Small can offer several thousand dollars’ rent assistance as an incentive package to lure the business to Daphne.

Councilman August Palumbo cast the lone dissenting vote; Councilman Greg Burnam was absent from the special-called Tuesday meeting.

Palumbo expressed concerns about the company withholding its identity from the council.

“I do not like clandestine deals,” he said. “I do not like secret deals with companies who we don’t know who they are.”

At issue is a medical billing center in New Jersey that requires companies to give its employees 60 days’ notice before relocating its operation to a new site.

But the company can’t give public notice until it’s selected a new community to move to; Daphne is one of three choices, with the other two locations in Florida.

The company awaits word on what kind of incentive package Daphne will offer before it decides to move here.

The city has pledged a total sum of rent assistance not to exceed $10,000 up to a six-month period.

Palumbo, opposing the measure on protocol, cited the Alabama Code of Law, which requires a company to publish notice in the city’s newspaper of record—in this case, the Daphne Bulletin—seven days before a public meeting.

“This law requires them to make a public notice,” he said.

Small noted that the company plans to notify its employees Feb. 1.

“The statement of letter of intent still has to come back to the council to formally act on,” city attorney Jay Ross said.

“Of course, there will have to be a public hearing on this,” Small said.

A date for the public hearing has not been set.

“My primary question is the precedent that we set,” Councilwoman Cathy Barnette said. “This is the first time we’ve done this.”

The city has never entered into an agreement of this nature with a company that has withheld its identity, Ross said.

Palumbo expressed frustration toward project spokesperson and Baldwin County Economic Development Alliance executive director Robert Ingram when he wouldn’t answer the councilman as to where exactly in Daphne the company has eyed for its site.

“All I can say, legally, is that it’s inside the city limits,” Ingram said.

Councilman Ron Scott expressed concern that Palumbo was treating Ingram like a hostile witness, grilling him in an aggressive manner.

“When we scream at people from up here, we give the image of being antibusiness,” Scott said.

“I am embarrassed; I am appalled at some of the comments from up here. We’re in tough economic times,” he added. “We need to be helping people, not creating obstacles.”

Palumbo said he, too, was embarrassed by the council’s rush to judgment.

“The council is doing something it’s never done before,” he said. “Giving away, essentially, taxpayer’s money could be a slippery slope in the future.”

“There’s no attempt to hide anything,” Council President John Lake said. “I don’t think there’s anyone trying to be clandestine or underhanded.

“They have tried to be above-board all along. … I think us being here tonight shows that it’s not clandestine.”

The medical financial center—with a projected annual revenue of $20 million—will hire all of its employees locally with starting pay at $15 an hour with medical benefits or $17 an hour without benefits.

“From my understanding, they’ll hire all their people here,” Small said. “That’s 15 to 20 people here than can get jobs.”

The billing center expects its employment numbers to double over the first two years.

“I think the bigger issue is we are going to have opportunities to look at our own existing businesses,” Scott said, referring to the impact on local businesses from the city setting this precedent.

“We’ve got to make sure our big guys stay in business,” he added. “We’ve got to make some decisions ahead of us; we’ll have to talk about how we can stimulate business.”

Ingram, speaking on behalf of the nameless company, said he feels the incentive package offered by the city is more than generous.

“It shows that Daphne really wants this company,” he said. “But they only get the incentives if they decide to come here, so you’re not risking anything.”