The mayor and president of the board were chosen during Monday evening’s Parsons City Commission meeting.
The commissioners voted for Kevin Cruse to be the Mayor and for Commissioner Tom Shaw to serve as president of the board this year.
A public hearing was also held to discuss the issuance of industrial revenue bonds and granting an ad valorem tax abatement to benefit the Katy Golf Club.
During the hearing, economic director Jim Zaleski noted that the bond posed “absolutely no risk” to the taxpayers of Parsons.
Andrew Kovar of Spencer Fane, a municipal bond attorney, said that this industrial revenue bond was a conduit issuance.
“While it is an issuance of the city, the repayment of the bond and all the obligations associated with that are on the developer itself, not on the city,” Kovar said. “It’s not secured by the tax revenues of the city by any means.”
Kovar noted that the developer pays the bond payments through lease rental and that this process was beneficial for tax incentives.
“The city can grant — well, does grant — an exemption on sales tax for the construction materials and a 10-year tax abatement on the improvements that are built with the bonds,” Kovar said. “So this doesn’t change the taxes that are on the property as it is now.”
Kovar added that as new construction takes place, it increases the value of the property.
“That property will not be on the tax rolls for 10 years, and that is the incentive to try and get this project going and make sure that it works,” Kovar said. “And that is only available through this IRB process.”
The structure of the bonds has not been determined, but Kovar said the bonds would be sold to the specific lender for the developer or bought by the developer directly.
“Either way, again, not a true debt to the city,” Kovar said. It was discussed that the only tax to be levied on the property would be the mills associated with the local school districts’ capital outlay fund, which Kovar said can be up to eight mills.
According to the resolution passed later in the meeting, the bond is not to exceed $4,325,000 and will cover costs incurred with purchasing, acquiring, constructing, reconstructing, improving, repairing, remodeling, furnishing, and equipping a commercial facility consisting of a gold clubhouse, cart paths, parking lot, restaurant, event center, and a maintenance building.
See HEARING, Page 4.
Cruse highlighted that this program benefits the community, as every dollar spent in the community turns over seven times.
“Having a plus seven return on investment is pretty high for cost-benefit analysis that I see,” Kovar said. “So, you should take whatever comfort you can in the fact that doing this project should generate a pretty good economic return for the incentives that you’re granting in.”
Cruse added that this measure would improve the quality of life in Parsons by providing an event venue, a restaurant, and improved golfing facilities.
“In all of these that I’ve seen issues in my 30 years — I have never seen one that goes to augment to the degree that this one does — the public enjoyment and the future of public enjoyment and an asset that attracts people here,” City Manager Jeff Cantrell said.
He added that this was a unique situation, and described the measure as a “win-win.”
In other business, the city approved an agreement with Vanderford Enterprises to loan $25,000 for the purchase of 1716 Main Street, formerly George’s Hallmark. A payment request of $163,800 was also approved toward the library window improvement project being completed by Greg Hinman Construction, which began last year. The project is almost complete, with a total of $45,300 in costs remaining.
The next Parsons City Commission meeting will be held on Tuesday, Jan. 20, at 6 p.m., in the City Commission Room in the municipal building.
