Bullard considering massive building projects

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September 10, 2012

Bullard considering massive building projects

Faith Harper Jacksonville Daily Progress The Jacksonville Daily Progress Mon Sep 10, 2012, 08:29 AM CDT

BULLARD — If all goes as proposed, Bullard residents could soon see the city's first hotel and a subdivision of rental town homes and duplexes.

Revenue from the two proposed projects could lower the tax burden on individual homeowners if they pass, officials said.

“Everything the city does rests on the shoulders of the residential taxpayers,” Mayor Pam Frederick said. “That is very burdensome on home taxpayers and we need to get commercial development so we can get everyone some relief.”

On Thursday, the Bullard Economic Development Corporation voted to move forward with seeking funding options for incentive packages to developers for the two major additions to the city. Once completed, officials hope for added revenue to the city and school district without adding extra burden to residents already living in the city.

The board did not approve spending the money at the Thursday meeting, and the isssue will be revisited at Tuesday's city council meeting.

“I think Bullard is very fortunate to have two big projects to consider,” board member Lindsay Bradley said. “I think this is an exciting time even though many of us still have some questions (for the developers).”

Board members heard a presentation from Jerry Walker, with Impact DataSource, on the possible economic benefits from the projects, using numbers given by the developers.

The first proposed project, Cherokee Villiage, is a 10.97 acre mixed-use commercial district planned for the intersection of U.S. 69 and County Road 3801, in front of Oak Grove Estates. The development would include a 102 room hotel, a gas station with an in-house barbeque restruant, a coffee shop, bank, fast food restaurant and four full-service restaurants.

Walker said he estimates 258 direct and indirect jobs will be created by the project, including construction workers and jobs that provide goods and services to the development.

Developer Tom Roper is asking BEDCO for $250,000 to help with infrastructure setup costs for the Cherokee Village project.

Over 10 years, the development is projected to pay $62 million in salaries to employees, $240 million in taxable sales and add $19.5 million to the city's commercial tax rolls.

Walker said he estimates the city would bring in $8.7 million over 10 years in taxes and assorted fees.

Frederick said developer A.W. Hines is requesting assistance of $750,000 from BEDCO to help with infrastructure costs and building a road in a proposed $50 million project, Heritage Springs.

The 34-acre mixed-use project is proposed to be placed at the intersection of F.M. 344 and U.S. Highway 69, and contain 260 town homes and duplexes along with office spaces, retail and non-retail space.

Walker said he estimates the project will bring in 713 direct and indirect jobs.

Over 10 years, the development is projected to pay $191 million in salaries to employees, $346 million in taxable sales and add $47.2 million to the city's commercial tax rolls.

Walker said he estimates the city would bring in $10.1 million over 10 years in taxes and assorted fees from the project.

To pay the incentives, the board would have to take out a loan of $1.2 million, which is currently proposed to be tied-in with the city of Bullard, which is looking to take a out a certificate of obligation to complete street work.

Frederick said the city would be able to get a better rate than the development board, and the city could take out additional money on BEDCO's behalf, which the board would pay back to the city.

Bradley said once the board takes out a loan, they are obligated to pay the funds back on a specific time scale.

“I think these are good projects but realistically looking at them, (I want to) make sure we have the money for the ramp-up period,” he said.

Walker said he was confident the board would be able to make loan payments, but he would crunch numbers for a worst-case scenario and total debt service for the board to consider.

The board approved looking into funding options for the projects, but they are still a long way from being final. The borrowing is currently proposed to be tied to the city, which would require approval from the city council, which is slated to consider its loan on Tuesday evening. The individual projects would then have to be approved individually by BEDCO and then by the city council.

BEDCO president Scott Nelson, said he would also like to see commitment from both developers and when they intend to begin their phases of construction.

With the steps ahead, Frederick said he is excited about the project's potential.

“Of all the things I have been involved with, helping to bring this BEDCO board together is what I'm most proud of,” she said. “They are willing to take a calculated risk and realize they have to make an investment they have to take action for anything to change. I'm so proud of the BEDCO board and the fact that we've got somethings going forward.”

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Bullard considering massive building projects

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