The Gulfport City Council on a unanimous/majority vote adopted an ordinance to expand fee waivers for large development projects, approving an amendment to Chapter 3, Article 2, Section 3-38 of the city code that waives certain building inspection and building permit fees for qualifying projects.

City administration described the change as a prospective economic development incentive that applies to projects with a total project cost of $10,000,000 or more when sited inside an established urban renewal district and to projects of $40,000,000 or more anywhere in the city. City administration official Jeff said the waiver would apply to “building inspection fees, building permit fees” and estimated the permitting fees for a very large project could amount to roughly $54,000; he added the city “doesn’t lose anything if they don’t come” because the incentive is triggered only if the project is undertaken.

The measure reflects an effort by the administration and some council members to offer predictable, codified incentives to attract large retailers and other major investments. Supporters argued that formalizing incentives would address Gulfport’s reputation as a difficult place to develop and provide certainty developers seek during site selection. Councilmember Sellers, who moved adoption, said the incentive “will turn people’s heads a little bit” and make Gulfport more competitive with neighboring jurisdictions.

Opponents expressed concern that the ordinance amounted to a “blank check.” Councilmember Holmes Hines pressed for broader policy work — she said the council needs a comprehensive set of urban renewal policies, practices and procedures before adopting incentives that might apply across residential and historic neighborhoods. She and others sought clarity about which urban renewal districts would be affected, whether zoning would apply inside those districts and how the Gulfport Redevelopment Commission (GRC) and the council would share decision authority.

City attorney Bruni and city staff explained the process: the council creates urban renewal districts under state law and approves urban renewal plans and bylaws for the GRC; the GRC may administer programs under those plans but the council retains reserved authority on key matters, including adoption of urban renewal districts, bylaws and any use of eminent domain. Staff also said that, under earlier zoning amendments, activities within an urban renewal district can be exempt from the zoning ordinance but that proposed lease agreements and other transactions would come before the council.

Related items on the agenda drew separate votes. The council approved an ordinance (Chapter 9, Article 2, Section 9-29) to allow a tax abatement/abatement program tied to qualifying capital investments (the motion referenced allowing a tax exemption/abatement not to exceed a seven-year period). That ordinance passed on a council vote after a motion and discussion.

A companion measure to establish a plan to exempt ad valorem taxes for qualifying capital improvement investments in accordance with Mississippi Code Section 17-21-5 — the item that would have explicitly urged Harrison County to provide a similar exemption and would have excluded school district taxes — failed for lack of majority. Councilmembers split on that proposal; the chair called for hands and counted “three” nays, producing a tie and leaving the measure without the required majority to pass.

Council members asked staff to circulate existing urban renewal plans and to schedule a broader policy conversation. Councilmember Buckner requested that administration provide copies of current urban renewal plans; staff agreed to send those documents to council members. Several council members urged that any future use of incentives be tied to clearly defined urban renewal plans and that the council receive more comprehensive guidance on how urban renewal interacts with zoning, historic preservation and community priorities.

The council discussion also included practical details and clarifications from staff: the proposed fee waivers are prospective (they apply only if and when qualifying projects are built), the waived fees referenced are permitting and inspection fees, and the city would receive ad valorem and sales tax benefits if a large project locates in Gulfport. Staff said the Gulfport Redevelopment Commission is an independent body created under state law whose bylaws and district approvals are subject to council oversight.

Council members and staff agreed on the need for follow-up: circulation of urban renewal plans and a fuller workshop or policy review to define practices, limits and community protections for urban renewal incentives.

Votes at a glance:
- Item 12 (Ordinance amending Chapter 3, Article 2, Section 3-38 — fee waivers for qualifying projects): Adopted (motion carried; individual roll-call names not specified in the transcript). The action adds a paragraph allowing fee waivers for projects with total costs of $10,000,000+ inside urban renewal districts and $40,000,000+ citywide; waived fees include building inspection and building permit fees.
- Item 13 (Ordinance amending Chapter 9, Article 2, Section 9-29 — tax exemption/abatement up to seven years): Adopted (motion carried; recorded as carried unanimously in the meeting). The measure authorizes an ad valorem exemption for qualifying capital improvements, excluding school district taxes per the text discussed.
- Item 14 (Ordinance to establish a plan to exempt ad valorem taxes under Mississippi Code 17-21-5 and to urge Harrison County to provide the exemption): Failed for lack of majority (transcript records a hand-count of “three” nays; did not attain required affirmative vote).

Why it matters: The changes formalize incentives the city says will attract large private investments and help trigger sales and ad valorem tax gains. Council members warned that without a comprehensive urban renewal policy and clear boundaries, incentives risk unintended impacts on residential and historic neighborhoods. The council directed staff to provide existing urban renewal plans and indicated it will pursue additional policy review before expanding incentives further.

What’s next: Staff agreed to circulate the city’s urban renewal plans to council members. Several council members requested a workshop and more detailed policy recommendations tying incentives to specific urban renewal plans, zoning protections and community priorities.