Tax abatement program could attract businesses

Unlike other counties in the region, Highlands County doesn't offer tax abatement as an incentive to attract businesses here.

But Dan Murphy, the executive director of the Highlands County Economic Development Commission, would like to see that change.

Murphy brought up the issue during the EDC board of directors meeting Wednesday. The meeting was held at the office of Sebring attorney Cliff Rhoades, who is a board member.

Murphy wants to know if the Highlands County Commission is interested in placing a tax abatement referendum on the ballot next year for the voters to consider.

Murphy said the commission should have the ability to grant abatements on a case-by-case basis. The commission could decide to have a prospective company be exempted from paying all of its property taxes or perhaps a percentage for a certain period of time.

Receiving a tax break is a strong incentive for a company to locate in a particular place, according to Murphy. He noted that a company that invests $300 million in a county or a community will create a multiplier effect of close to $1 billion that will benefit the local economy.

During the meeting Murphy said Vercipia Biofuels, which is planning to build a plant in southeast Highlands County that will make 36 million gallons of cellulosic ethanol from sugarcane, sorghum and grasses, would pay if the tax abatement question appeared on the ballot in a single-issue election. That would cost between $70,000 and $100,000, according to Murphy.

It won't be necessary because there will be two occasions it could appear on the ballot in 2010 - the August primary or the November general election.

The plant is to be located along State Road 70, near Brighton, on 35,000 acres of Lykes Brothers land. The company expects to break ground on the plant next year.

If the issue does move forward with a referendum there will likely have to be a campaign to convince the voters.

Board member Susie Bishop said it will require "heavy duty public education."

The item will be on the agenda for a joint workshop with the EDC board and the Highlands County Commission. The board wants to schedule the workshop, which will be held early in the day or at lunch time, with the commissioners in January. Murphy will talk with Highlands County Administrator Michael Wright about a date.

In other action, the board voted to pay its annual dues of $9,000 to Florida's Heartland Rural Economic Development Initiative.

The board's meeting next month will be held at the Lake Placid Chamber of Commerce on Jan. 13.