County clears way, city next, for “Town” development
By Charles Molineaux | For The Record
MADISON – The city of Madison stood poised to seize a large scale opportunity to open up a new development frontier south of I-565 with the creation of a new taxing district and development partnership, city and county officials said.
“It could be huge,” exclaimed Mike Potter, member of both the Madison city council and planning commission.
At its July 14 meeting, Potter said he hoped to see the council take up the creation of the “Town Madison Cooperative District” for the development of 700 acres of land along the interstate between Wall-Triana Highway and Zierdt Road. The Madison County Commission approved the proposal at its July 2 meeting, but not without questions about its financing mechanism.
“I think it has a very bad odor,” said District 1 Commissioner Roger Jones. “It allows a local developer to pocket… millions of dollars.”
Under the tax system proposed for the district, developer Louis Breland would advance the money himself for improvements necessary for development in the area, such as drainage, roads, utilities or ramps to and from the interstate, instead of the city or county taking on that debt.
Estimates of that cost run between 18 million and 22 million, said District 2 Commissioner Steve Haraway of Madison.
The Town Madison district plan then allows Breland to collect the revenues generated there through sales taxes and taxes on the enhanced value of the property, until his bonds are paid off.
“If nothing is ever developed there then this guy’s just wasted his money,” said Potter. “We’re not out any money, regardless.”
Jones questioned whether allowing Breland a 10% return on his bonds was excessive. The area targeted for improvement by the district includes land owned by Intergraph as well as the Madison Golf Center. The focus of current retail development plans is the easternmost part of the district, a now largely forested area that abuts both Zierdt Road and the interstate.
“Nothing has been presented in terms of “who, what, where” in terms of the commercial development,” said Potter. “I’m sure he’s got fish on the hook.”
Charles Molineaux is an anchor and investigative reporter with WAFF 48 News.
