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Developer seeking West Fraser property asks Perry for tax relief as part of due diligence
Summary
A developer who acquires closed industrial properties told the City of Perry council Jan. 14 that repurposing the West Fraser site could create jobs but asked for temporary tax relief to make the purchase viable; council discussion did not produce an immediate decision.
A developer who said his company buys and repurposes closed manufacturing plants told the City of Perry council Jan. 14 that he is considering the former West Fraser mill and asked whether the city could offer tax relief to ease his 30-day due diligence period.
The presenter identified himself as John Gerald and described a business model of purchasing dormant facilities, clearing or repurposing equipment and working with local economic development partners to find new operators. Gerald said his firm has bought a dozen facilities around the Southeast and helped re-employ hundreds of workers at some sites.
Gerald asked whether the council could waive or defer property and tangible personal property taxes for one year to help absorb heavy, immediate tax liabilities tied to equipment on the site. He said quoted figures include personal property taxes for the facility of about $425,000 and real estate taxes of about $75,000 ("give or take"), and that those amounts make immediate acquisition more difficult during a short due-diligence window. "Never have I had a $500,000 tax liability going into something on top of a purchase price," Gerald said, asking whether the city could provide "some help." He did not request an immediate answer.
Councilors asked follow-up questions about the site’s acreage and prior buyers, and whether the presenter was seeking to operate the mill as an OSB (or similar) manufacturing facility; Gerald said some owners will not allow reopening for certain prior uses but that he would work with local investors if a larger land assemblage became available. City staff confirmed the city portion of taxes for the facility was cited during the meeting as $23,000 for property and $131 for tangible personal property (this was discussed in the meeting transcript and requires staff verification).
No formal motion or vote was taken on incentives. Council members thanked Gerald for his presentation and asked staff to note the request and to provide any information on the property’s tax history and options for incentive programs at a future meeting.
Next steps: staff to provide tax history, potential incentive options and any applicable program constraints so the council can consider a future incentive decision if the developer proceeds with purchase.
