High Springs offers local economic stimulus

The votes came in last November and High Springs residents have spoken: They voted in favor of offering industry a little something extra to locate in their city, paving the way for local tax breaks.

On Feb. 10, the City Commission finalized the requirements and procedures for granting ad-valorem tax exemptions to new and expanding businesses.

The referendum authorizing the commission to offer these tax exemptions was passed by a majority vote in the last election, and last week commissioners took the final step in a unanimous vote to make the referendum official city policy. Its purpose is to be used as a tool to encourage economic development in the area.

For a business to be considered for an exemption, it must submit an application to the city, including a $500 fee to be paid only upon approval. Factors that determine whether the business will be granted an exemption, and for how much, include business type, how many local jobs it will offer initially and over time, as well as the pay rates for those positions.

David Ramsey, senior director of economic development for the Council for Economic Outreach at the Greater Gainesville-Area Chamber of Commerce, has been helping the city plan and implement the tax incentive program.

A wide variety of businesses can qualify, Ramsey explained. The only type that generally wouldn’t be considered is retail, because initially, retailers won’t benefit the goal of the tax breaks, which is to encourage economic growth and sustainability in the community as a whole. Retail stores won’t flourish without a customer base of individuals with stable incomes who can afford to shop, Ramsey said.

Jobs have to come first, which is why industry and service-based businesses are better suited to receive the tax breaks. The city has to bring in employers, and then retail will want to come in and will naturally thrive if there are people with extra money to spend, he explained.

Ramsey called the tax-exemption program an “aggressive, up-front incentive,” and he said it’s the only one in Alachua County and one of few in the state.

It should help the whole area, he added, not just High Springs, in attracting new business, as an economic upturn in one city can have a ripple effect on surrounding municipalities.