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Innis delays two major tax-rebate hearings while approving $1.5M for industrial water and sewer upgrades

Innis City Commission · June 18, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Innis City Commission on June 18 approved up to $1.5 million for water and sewer upgrades tied to Project 300 but continued public hearings on two Chapter 380 tax-rebate agreements (Project Rogala and a large distribution center) until July 16 after the TIRZ-3 board failed to reach a majority vote earlier in the day.

The Innis City Commission on Tuesday approved a not-to-exceed $1,500,000 expenditure from the Economic Development Corporation to fund water and sewer upgrades for a proposed industrial site (Project 300) but continued two separate public hearings on Chapter 380 tax-rebate agreements for Project Rogala and a large distribution center until July 16.

EDC Director Jim Wehmeyer told the commission the Project 300 infrastructure package would include about 2,600 feet of 36-inch gravity sewer and roughly 6,500 feet of water line to complete a loop that opens about 300 industrial acres to development. He said the total project is about $2,000,000, with the EDC prepared to contribute up to $1,500,000. After a staff presentation and with no members of the public speaking, the commission approved the resolution by voice vote.

Why it matters: The projects on the table represent large private investment and potential job creation in Innis. At the same meeting, two separate Chapter 380 incentive requests drew deeper scrutiny: Project Rogala (a manufacturing facility) and a proposed 120‑acre distribution/fulfillment operation. Both G2 and G3 were the subject of a TIRZ-3 (tax increment reinvestment zone) discussion earlier in the day that, according to the city, produced only three favorable votes and one dissenting vote — insufficient for the board to approve. Mayor Cameron Rayburn said the commission is continuing the public hearings to avoid re‑noticing and to allow legal and board issues to be clarified.

Project details presented to the commission included economic projections and incentive terms. Wehmeyer said Project Rogala envisions a capital investment of about $77 million and roughly 34 jobs; the staff presentation proposed a 70% property-tax reimbursement (a Chapter 380 structure) to be split across the city, county and TIRZ for seven years. For the larger distribution project presented later, staff showed a multi‑phase plan with a capital investment example of about $107.5 million and an estimate of 274 jobs; the same 70%/seven‑year incentive profile was proposed under policy.

Company representative Steve McKee, who identified himself as a general manager for the company proposing the distribution facility, told the commission the incentive was critical to the company's final location decision and that the facility would include recreation areas and other amenities. (The transcript uses both the spellings “LoRa” and “L’Oreal” in places; in his remarks the speaker identified a well-known national brand as part of the conversation. The article quotes McKee as he appears in the transcript without correcting the company spelling beyond noting the inconsistency.) "The incentive compensation is critical to our final decision to to come here and develop," McKee said during his remarks.

Public input: No members of the public spoke on any of the three items at the June 18 meeting; the mayor opened and closed each public hearing. The commission formally continued the G2 and G3 hearings to the July 16 meeting at 6 p.m. to allow the TIRZ board and city staff to resolve questions about the board vote and to permit additional review.

Next steps: The Project 300 infrastructure expense was approved and will move forward under the EDC schedule. The Rogala and distribution-center incentive hearings are scheduled to resume July 16, when the commission will take any further action. The county-level consideration noted in the staff presentation is scheduled on separate county timelines.