Tax Deal Approved for Local Development
Meridian Council Approves Nine-Year Tax Break for Apartment Developer, Davis Dissents
The Meridian City Council voted 4-1 Sept. 1 to grant Encore Development LLC/The Preserve at Meridian a nine-year exemption from ad valorem taxes.
The council adopted the "FINAL RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, MISSISSIPPI GRANTING EXEMPTION FROM AD VALOREM TAXES FOR A NINE-YEAR PERIOD TO ENCORE DEVELOPMENT LLC/THE PRESERVE AT MERIDIAN AS AUTHORIZED BY SECTION 27-31-101 ET SEQ., OF THE MISSISSIPPI CODE OF 1972, AS AMENDED," according to the meeting's minutes. Councilman Brewer offered the resolution, and Councilman Tims seconded it.
The minutes record Brewer, Tims, Walker and Hill voting yes, with Councilman Davis casting the lone no vote. The minutes do not state why Davis dissented, and his reasoning remains unconfirmed.
A nine-year property tax exemption represents a real reduction in revenue the city would otherwise collect from the apartment project. The specific assessed value or total revenue forgone over the nine years was not detailed in the minutes. The single dissenting vote indicates the incentive was not approved without objection, placing it among the kinds of local tax-abatement agreements that draw scrutiny for their fiscal impact over time.