Adam Colledge - Gautier Council At-Large

Economic Development and Commercial Growth is always a very hot topic. There is a lot of inaccurate information being floated around by some candidates. Here are the facts.

Incentives:
Gautier offers a host of incentives for the purpose of recruiting commercial development. These include, but are not limited to, TIF (Tax Increment Financing), Central Business District and Redevelopment Grants, and special incentives through Local and Private legislation. Each incentive offers reimbursement either through increase in ad valorem, sales tax, or both.

A couple of examples:
-Harbor Freight - Redevelopment Grant – Gautier was the first in the State to utilize this, using a portion of the sales tax to fund a redevelopment grant through SMPDD. They also received a Central Business District Ad Valorem tax exemption to offset the cost of rehabilitating an existing building.
-Legacy Development - TIF agreement – Utilizes increase in ad valorem and a portion of sales tax to reimburse the cost of infrastructure that the city will eventually own and be responsible. These are usually covered by the issuance of a bond. The bond payment MUST be covered by only the increase in ad valorem and the agreed portion of the sales tax for only that development. Bond payments CANNOT be supplemented with any other City funds.
-Antonio’s Pizzeria - Central Business District Ad Valorem Tax Exemption to offset some of the costs of rehabilitating an existing building.
-Former Singing River Mall - The city worked diligently with the State to get Local and Private legislation that provides special attractive tax incentives unique to the old mall property. We have incentives in place for that specific property that other cities don’t have.

In summary, the City has positioned itself to offer financial assistance in multifaceted ways to developers interested in Gautier, has utilized those incentives, and will continue to do so.

Marketing:
Gautier is currently partnered with Blackwater Resources, a national development firm, to market properties within the city. This firm does not receive any payments unless a development signs with the city. Blackwater markets Gautier to a multiplicity of chains, has national contacts, and has been involved in several large-scale developments throughout the Southeast, including the Wharf Development.

The City also has an employee with a master’s degree in economic development, who works with interested parties commercially investing in Gautier, provides economic impact studies, and assists Blackwater on an as-needed basis. This employee also assists with grants and procuring other funding sources, so very well rounded. There has been chatter about the need for a full-time in-house economic development director. An in-house economic development director works with businesses who are approaching the City with interest, they do not have the contacts to market the property on a national/regional basis, which is what Gautier needs to attract development.

To enhance economic development and commercial growth, a city must have a draw, which leads me to the next topic………

The Sound:
Gautier successfully launched and constructed The Sound Amphitheater, bringing National Acts and a minimum of 80,000 people a year to the city from all over the Southeast. Bringing more people to the city not only financially benefits the city, but it also attracts potential developers. The Sound has also given the City of Gautier national recognition. The city is currently going out for bids on the Mississippi Songwriters Performing Arts Center, which will also have a state-of-the-art recording studio, and Mississippi Songwriters Hall of fame museum. This will increase tourism and promote economic development.

The City does not pay the promoter to bring concerts to The Sound. In fact, the Promoter (per contract) is required to pay the City a minimum of $600,000 annually for venue rental, percentage of sponsorships, and facility fees. In addition to the $600k, the city also receives sales tax from ticket sales, food and beverage sales, and merchandise sales.

To put this into perspective, the $600,000 annual payment alone is equivalent to a commercial development generating $46.3 Million in gross sales! The State of Mississippi collects 7% in sales tax, to which the city receives 18.5% of that, so Gautier receives $0.01295 for every dollar spent within city limits. In addition to The Sound itself, there has been a large increase in sales at local restaurants, retail stores, and gas stations whenever there is a concert. Per the most recent economic impact study, the city sales revenue has increased by approximately $200,000 since The Sound opened, which is in addition to the $600k.

So Gautier now has a draw, which leads to…………

Town Common (former Singing River Mall):
The City acquired the “mall” property in 2021. Prior to this time, the city actively tried to tie interested parties with the former owners. It was finally decided that for anything to actually happen, the city would have to purchase the property. Funds for the purchase primarily came from Gulf Coast Restoration Funds and the State Legislature’s bond bill. Until the City owned the property, it could not control nor have any say as to what was done with the property or efforts being made to market the site. After purchase, the City subsequently reached a favorable agreement with Belk, so the site can now be developed in accordance with the Master Plan adopted by the Council without input or right of refusal. Since that time, The City has installed water and sewer infrastructure along the right of ways to make the out parcels more desirable, and sized them in a manner to supply water and sewer to the interior development of the site.

Since The Sound opened, along with the Museum soon to be constructed, there has been a very significant uptick in interest from regional and national chains for Town Commons. Just because it appears nothing is happening, does not actually mean nothing is happening. Economic Development and Commercial Growth is a marathon, not a sprint. When working with large chains, most of the time there are non-disclosure agreements (meaning it cannot be discussed openly), and it takes time to move it through the corporate departments and site plans to get to where there is an official announcement. National and regional chains also perform their own marketing analysis/studies, which tracks resident shopping habits, spending, and even social media.

In closing:
A quick overview of accomplishments the last 3 ½ years under this City Council.
-Over $41 Million Federal and State Grants/Funds received since July 2021.
-Major infrastructure Improvements city-wide.
-The Sound Amphitheater.
-Legacy Development.
-Over 180 new businesses.
-Marketing in place.
-Commercial Development Incentives in place.
-Increased parks, recreation, and community events.

Please be cautious of false narratives and empty “pie in the sky” promises being pushed by some candidates. This City Council and City Staff work tirelessly every day to make this City, “Natures Playground”, a better place to live. Please allow us to continue Gautier’s momentum and build upon the accomplishments and progress we’ve made the past 3 ½ years.

Please Vote Adam Colledge for Gautier Council At-Large this TUESDAY, April 1st at Gautier Community Center (2012 Library Lane).