After lengthy discussion Monday night, Warsaw City Council approved a resolution that declares the Menard's subdivision as an economic development target area.
A public hearing for the issue was Monday night. The council held a preliminary hearing at its Dec. 7 meeting.
However, the vote was not unanimous with council members Jerry Patterson, George Clemens, Charlie Smith and Kyle Babcock voting in favor of the full five-year tax abatement.Council President Joe Thallemer and councilmen Jeff Grose and Dan Hampton voted against the full tax abatement.
By designating the property an economic development target area, the city will permit Martin's to file a five-year tax abatement on real property improvements.
Along with the resolution, Martin's submitted a statement of benefits for those estimated real property improvements.
Martin's requested two lots of the subdivision be designated as an economic development target area.
The supermarket will be located along Husky Trail, Warsaw, and the residential subdivision that has not yet been built will be located behind the supermarket.
Martin's is estimating creating approximately 180 jobs, 70 full-time and 110 part time (32-34 hours per week), with $2.5 million per year in salaries and approximately $8.4 million in real property improvements.
Steve Snyder, Syracuse attorney, said Menard's, the developer did not leave direct access to the parcels Martin's wants to develop other than through the Menard's parking lot and off Mariner Drive.
Snyder said there would need to be a curb cut onto Husky Trail that would cost the city $183,513.
"Martin's is requesting a five-year tax abatement to make the tract functionable, and the area qualifies as an economic development target area," Snyder said.
Hampton asked if during negotiations did Menard's indicate they would provide assistance with road improvements. He also asked if government assistance has been sought for the tax abatement.
Snyder said Menard's agreed to assist with road improvements, but no government assistance had been sought.
"Menard's has been difficult to negotiate with, and I think the city is aware of that," Snyder said.
Rob Bartels, Martin's president, said it has been difficult negotiating with Menard's on road improvements to Husky Trail.
"We are not wanting to come here just for fun, we are looking for every opportunity to make this a go," Bartels said.
Hampton said he had concerns that Menard's has not negotiated with Martin's.
"Menard's has the lot where Martin's wants to build and Menard's will make a lot of money off of the sale of the lot," Hampton said.
"Now Menard's is expecting the city to assist in closing their deal, and in my opinion Menard's has the obligation to seal this deal and if they want Martin's as tenants they need to bring a deal to the table."
Thallemer said he had concerns that this would be the first time the city granted an abatement on a commercial retail property.
"We have to be careful with the tax payers' money and look at each application for a tax abatement and look at circumstances," Thallemer said.
Smith said he was opposed to just limiting the tax abatement to public improvements, but was in favor of the full five-year tax abatement.
"I don't want to have to tell my tax constituents that we will frown on tax dollars from personal property over a course of five years," Smith said.
"I feel this request for a five year tax abatement is reasonable especially in these trying times."
Patterson said the $2.5 million in payroll will help promote competition, and he said he thought the city needed to help Martin's by approving the full tax abatement.
Clemens said the lot could sit for 10 years if the city did not approve the tax abatement and economic development target area.
"Even if the lot sits I don't care if it will hurt Menard's, but it will hurt our city in tax dollars," Clemens said.
Babcock said he supported the tax abatement and $183,513 for Husky Trail improvements.
Grose said he had never voted against a tax abatement, but he had concerns voting in favor of it.
"I am in favor of Martin's coming here, but Menard's, the developer, told the city after we approved the 20 acres of residential area that they would make the road configuration work, but the way it is doesn't sit well with me," Grose said.
He said he didn't support the additional funds that would be needed to make improvements to Husky Trail that would cost the tax payers.
