By Mark Wineka
Salisbury Post
Rowan County commissioners said they were impressed Tuesday by the city of Salisbury’s tax incentive ideas for the airport.
But commissioners emphasized that Tuesday’s council meeting was the first time they had ever seen the city’s report proposing an airport development zone and economic incentive agreement.
City Manager David Treme reiterated that the draft agreement went to Rowan County offices last year for the commissioners’ review and input.
Mayor Susan Kluttz said the whole matter of who got the report and when and commissioners’ saying they had never seen it suggests “we need to communicate better.”
That aside, Salisbury Management Services Director John Sofley reviewed a proposal Tuesday in which the city and county would reduce property taxes for airport-related businesses by 50 percent, making it competitive with the tax rates paid at the Concord and Statesville airports.
The property tax rate at the Rowan County Airport is $1.185 per $100 valuation when city and county taxes are combined. If the city and county each reduced their tax rate by 50 percent, the tax rate would fall to 59.25 cents per $100 valuation.
The Statesville airport’s tax rate is 82.5 cents per $100 valuation; Concord’s, $1.075.
Sofley said another option would be for Salisbury to reduce its tax rate by 50 percent as an incentive grant and for Rowan County to not participate. That would reduce the combined tax rate for the county-owned Rowan Airport to 89 cents per $100 valuation.
County commissioners recently have discussed cutting the combined city-county tax rate, creating an economic development zone around the airport or even asking the city to de-annex the airport.
Commissioner Jim Sides said Tuesday the airport needs a tax rate that will draw much needed retail companies here and the current “double tax rate” has hurt the airport’s development.
Rowan County’s development plan for the airport includes an extension of the runway, building a hangar for lease and looking for ways to entice companies to use the airport and even house their corporate jets at the facility.
Salisbury Mayor Susan Kluttz, while encouraged by the commissioners’ reaction to the city’s proposal and their invitation to discuss it more, said commissioners should know up front that the city will not de-annex anything and will continue with future annexation plans.
She said the two jurisdictions would have to agree to disagree on that point.
Councilman Bill Burgin said he can’t see council’s “going to zero’ in tax revenues it receives from the airport, partially annexed in 2006. But the city and county should sit down and talk about what the combination tax numbers should be, he said.
Burgin personally flies in and out of the Rowan County Airport and frequents other general aviation airports in the state.
“This is a good place,” he said of Rowan’s airport, describing it as a jewel that could be shaped into something special.
Burgin and Mayor Pro Tem Paul Woodson volunteered to be the city representatives at future meetings with the county, which has an Airport Technical Advisory Committee.
“I can assure you we want to work it out,” Woodson said. If the city and county went with the 50 percent tax incentive grant, a company could save $12,000 on a $2 million corporate jet, Woodson said.
Arnold Chamberlain, chairman of the Rowan County Board of Commissioners, said he liked the city’s presentation.As a county commissioner, Chamberlain said, he wished the city would not annex the airport area.
As a person who pays Salisbury taxes, Chamberlain said he understood “that’s the way the city does business.” Also, if the major concern about the airport’s development is the tax rate, “then what I’m hearing from you is that it won’t be a concern very long,” Chamberlain said.
The chairman said he wanted to work with the city. “I look forward to some real frank discussions,” he added. “I’m impressed with what I’ve heard and seen today. Let’s get on with it.”
Commissioner Jon Barber said the airport is an asset for both the city and county and the “dual tax situation” makes it less attractive. He also pushed for cooperation, establishing an economic development zone and getting together with the Salisbury-Rowan Economic Development Commission on a plan.
Commissioner Tina Hall asked Salisbury to consider a moratorium on assessing any property taxes at the airport, giving the county time to extend the runway, build a hangar and bring in new business.
Joint city-county projects, such as water-sewer extensions, are good for the entire county, Sides said, but when that infrastructure is turned over, Salisbury-Rowan Utilities benefits more than a county taxpayer in the short term.
Sides said the county was looking at spending millions of dollars to build the tax base outside of the airport, which will be an economic development tool to bring in new retail, racing-related interests and more.
The Rowan County Airport used to be looked down on, Sides said, adding that perception has changed. A lot of positive things are on the horizon, he said.Contact Mark Wineka at 704-797-4263 or mwineka@salisburypost.com.