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Troy finance committee backs ending Arco Abrasives enterprise-zone agreement, continues Town Center Park TIF and asks council for emergency filing
Summary
The Troy Finance Committee recommended council accept the Tax and Incentive Review Council's findings: continue the Troy Town Center Park TIF and terminate Arco Abrasives' enterprise-zone agreement for failing to meet job targets. The committee voted to request emergency legislation to meet an April filing deadline.
Todd Severed, chair of the Troy Finance Committee, said the committee would recommend that city council accept the Tax and Incentive Review Council's annual findings and seek emergency legislation so the state filing can be completed in April.
The committee's recommendation follows the TIRC's annual review, during which staff told the committee that five enterprise-zone agreements were evaluated and that Arco Abrasives had been found not in compliance for several years. The TIRC recommended termination of that agreement rather than continuing it past 2024; the Troy Town Center Park tax-increment financing (TIF) district, generally noted as the Walmart/Town Park area, was found to be in compliance and recommended for continuation.
A staff member told the committee that state law requires the TIRC to meet annually to evaluate enterprise-zone agreements and TIF districts for compliance. The staff member said there are "no fines or penalties per se" for noncompliance, but that a company would lose the property-tax abatement tied to the agreement and that "their property taxes would increase." The staff member also said the Arco agreement "hadn't been in compliance for several years." Todd Severed and other members emphasized the quid pro quo nature of the incentives: tax relief in exchange for maintaining or increasing jobs.
Committee members pressed staff for details on the size of the abatements Arco would forfeit if the agreement is terminated. The staff member said the committee would be provided the detailed figures and later told the committee, "I will forward that data when I get it." Tim Davis was named in committee remarks as having had multiple conversations with Arco representatives during the year leading up to the report.
Members contrasted Arco's noncompliance with other local recipients. The staff member noted that ConAgra and Clopay have met or exceeded their job minimums; the staff member said ConAgra is the recipient of three of the five enterprise-zone agreements under review.
The committee agreed to "move forward with emergency" legislation unanimously and asked staff to supply the abatement and tax-impact numbers as soon as possible.
The committee's recommendation will be forwarded to city council for formal action and for the emergency ordinance needed to meet the state's April filing requirement.
