Validation hearing set for April 11 on Improvement District
Wayne Ruple
04-07-2008
A validation hearing on a planned Improvement District at the junction of Hwy. 46 and I-20 is set for April 11 at 10 a.m. at the Cleburne County Courthouse. The hearing, will be held before a judge, at which time he is expected to approve or “validate” the plans as presented by developer David Hewitt Validation procedures are usually the final step in approval of such districts at which time incorporation papers are finalized, proposed bonding and repayment structure is accepted. As developer David Hewitt states in an open letter to Cleburne County citizens (see ad on page 2) the hearing is “designed to confirm publicly that the district has an agreement with the city and county and to clarify terms of the agreement.” Improvement districts have been very popular in Florida and other states and numerous districts have and are being created in Alabama as they have become a part of the state’s tax incentives package An Auburn University publication “Alabama Tax Incentives - An Overview and Update” notes that Improvement District bonds are part of Alabama’s tax incentives offered to new and existing businesses. “Under the Alabama Improvement District Act, counties and municipalities may form improvement districts, which are public corporations authorized to issue bonds backed by assessments on the real estate located within the district.” says the publication. Both Cleburne County and the City of Heflin have signed agreements with Hewitt on the site which is inside Heflin city limits. Cleburne County agreed to commit $4.75 million of sales taxes generated in the district and the City of Heflin agreed to commit $14,250,000 of their sales taxes generated in the district to pay for the bonds over a 25 year period. Hewitt explained that earmarked taxes such as state taxes and school taxes are not affected in any way, “only 3% city and 1% county non-earmarked sales taxes are applied,” he said. As part of the validation process the judge must rule as to whether the county‘s one cent sales tax generated within the district can go to repayment of the bonds. In 2001 the state legislature approved the one cent sales tax in Cleburne County for the upkeep and maintenance of the Cleburne County Jail. Hewitt said he will be glad to talk with any citizen who has questions about the district. He can be reached at 888-229-9232 or 256-363-2980. “These improvements will promote the development of the property, industrial park and economic development of the city and surrounding areas,” he said.
About Wayne Ruple
Cleburne News editor Wayne Ruple is a native of Ashville. Before coming to Heflin, he worked for three years as a computer systems manager in Birmingham. Ruple has worked for The Sand Mountain Reporter in Albertville, and was the editor of The Independent in Robertsdale. He has also worked for the Shades Valley Sun, the St. Clair News-Aegis and The Daily Home in Talladega.
