Tax financing approved for Emerson Commons
Wood County Commissioners Bob Tebay and Steve Gainer discuss the formation of the county’s first tax increment financing (TIF) district at Emerson Commons during Monday’s commission meeting. (Photo by Brett Dunlap)
George Brewster, a resident within the new tax increment financing (TIF) district at Emerson Commons, asked questions about how his property would be impacted by the new TIF district during Monday’s meeting of the Wood County Commission. (Photo by Brett Dunlap)
Wood County Commissioners Bob Tebay and Steve Gainer discuss the formation of the county’s first tax increment financing (TIF) district at Emerson Commons during Monday’s commission meeting. (Photo by Brett Dunlap)
George Brewster, a resident within the new tax increment financing (TIF) district at Emerson Commons, asked questions about how his property would be impacted by the new TIF district during Monday’s meeting of the Wood County Commission. (Photo by Brett Dunlap)
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PARKERSBURG -- The Wood County Commission approved the formation of the county's first tax increment financing (TIF) district at Emerson Commons.
The commission unanimously approved the motion establishing the "County Commission of Wood County Development District No. 1;" approving Emerson Commons Project No. 1; and establishing a Tax Increment Financing Fund at its regular meeting on Monday.
The proposed TIF district would cover 383 acres on both sides of Interstate 77 at its intersection with West Virginia 2 and encompass the interchange and development already underway.
The project includes public improvements, including water and sewer extensions, road improvements and a new stoplight on W.Va. 2 which would be paid for out of money generated from businesses on the property. It would get needed infrastructure in place without having to rely directly on the state and state funding to do it.
The majority of the property being considered for the TIF District is owned by Joseph Pope and/or his partner in the development, Rick Coulson. There were residential areas within the proposed TIF.
Commissioners were worried that property owners within the proposed TIF District as well as adjacent property owners may not be aware a TIF is being considered. There was a possibility some may not want to be included.
Affected property owners were contacted through certified mail with copies presented to be entered into the record.
Only one affected property owner appeared to speak. George Brewster presented his letter and asked questions regarding how the TIF would impact him and other property owners. Brewster owns a lot, Lot 20, toward the bottom of the outlined TIF District. He is included in a development with six houses.
''One thing that struck me when I reviewed the documents in the county commission office was it does not include some commercial property that is around the interstate (77), but it includes a bunch of residential land that doesn't seem to be impacted by this at all,'' he said. ''I don't understand why the new hotel (Holiday Inn Express) is not in this.
''I would think that would generate more tax revenue to be able to pay off the bonds.''
Pope, who was present for the meeting, said Coulson owned a lot of land above where the homeowners were and and they wanted to include it in the TIF. Pope said an engineer drew the line on the map that ended up including the homeowners' parcels.
Pope said there was a possibility they could build more houses in that part of the TIF in the future, but he did not see the property adjacement to the homeowners being developed into something commercial.
Carrie Cecil, of Spilman Thomas and Battle PLLC of Charleston, told Brewster being in the TIF did not change anything with Brewster's property.
''You are going to receive your tax ticket in the same manner,'' she said. ''It is not going to result in any additional levy rates imposed on your land. From your perspective, there shouldn't be anything that will look any different than it does today.''
Brewster voiced concerns about would property owners within the TIF have to make up any of the $6 million in bonds being issued for this if the business development they are estimating does not happen.
''If it doesn't get paid back, I understand business enough that you have to pay your bills,'' he said. ''You can't default on these bonds that are issued.''
If businesses do not come and locate in this area, it would seem that he and other property owners in the TIF would end up having to pay more to cover the bonds, Brewster said.
The TIF district would have to pay off the debt service on the improvements within 30 years, Cecil said.
''The bond holder takes on a lot of risk to assume the development is completed and filled out so there is revenue to pay it off,'' she said.
Cecil said they try to mitigate the risk. There is detailed analysis of what the revenues are supposed to look like.
''The intent is the revenues are always in excess of what is required and that we can pay down the debt faster,'' Cecil said.
Existing businesses out there would not be included in the TIF District, officials said.
The overall plan for the TIF is to develop the property for new development, they added.
Officials with the TIF estimated it could create around $50 million in development in the coming years.
One of the companies interested in building within Emerson Commons is Menards, a chain of home improvement centers. An average store is around 250,000 square feet and employs 250-300 people. A typical store does around $30 million-$35 million in business a year.
Commissioner Blair Couch said that intersection with W.Va. 68 and I-77 along Emerson Avenue is one of the prime locations for development in the county.
''We hope this leads to many more TIF districts in Wood County,'' he said. ''Mr. Pope has developed a lot of property in Wood County and they are all A+.
''I see this as a huge employment opportunity for Wood County and there is opportunity for other businesses to develop around there as well,'' Couch said.