Selina Iglesias
Greene Publishing, Inc.
During a special Board of Madison County Commission meeting that was held in December 2015, the county commissioners had discussed the possible action of donating nine acres of land on Dale Leslie Drive to a local business.
County Coordinator Allen Cherry introduced Ann Vickers of Certified Towing. Vickers presented a booklet entitled Certified Service Center Business Plan 2016-2018 and a proposed site plan for the new expanded business. Vickers explained that the proposed three-year expansion would include a facility with a diesel repair center, heavy duty truck parts, quick lube for big rigs, licensed Department of Transportation (DOT) inspection facility for semi-trucks and trailers, an automotive service center, a Penske truck rental, an Enterprise car rental and Accident Recovery Management Service.
According to the meeting minutes, after hearing Vickers’ proposal, a motion was made by Commissioner Ronnie Moore, seconded by Commissioner Wayne Vickers, that the county make the donation of nine acres of land with stipulations. Discussion followed regarding the stipulations. After much discussion, Commissioner Moore amended his motion and Commissioner Vickers amended his second to make the donation of nine acres of land with an added reverter clause and letter of personal guarantee by Vickers, with a subordination to a possible mortgage on the property and an action plan for increasing jobs in Madison County. The motion carried, 4-0.
The commissioners then agreed, by consensus, for County Attorney Tommy Reeves to prepare a contract for review by all parties.
During the April 13 county commission meeting, the Madison County Commissioners had the approval of contract with Certified Towing, for the sale of real property on the consent agenda. Just five days later, on April 18, the commissioners certified the sale of 9.84 acres, more or less, to the owners of Certified Towing, Ann and Greg Vickers.
This piece of property, which has an estimated value of $180,000 after improvements are made to the property, was donated to Certified Towing for the discounted price of $100.
According to the contract, “the county believes that selling the property to [Certified Towing] at below market value will allow the buyer to construct [a facility] and engage in business. The county believes [this] will promote economic development of the county and will benefit the county through increased employment opportunities, increased tax base and increased economic opportunities.”
The contract goes on to say that the board based their decision on “the anticipated positive economic impact on the county of the project for which the property is to be used..., providing a stronger, more balanced and stable economy for the county and/or its residents, enhancing or preserving purchasing power and employment opportunities for the county and/or its residents, or improving the welfare and competitive position of the county and/or its residents.”
In addition, the contract also states that, Certified Towing must provide the county a written notice stating that they have complied with all of the above requirements within 180 days of April 18, and then the contract will be ready to close. If Certified Towing fails to provide their notice in a timely manner, the contract will be null and void. After the pre-closing requirements are approved by the county commission, the closing of the contract will begin after 30 days “but not sooner than 60 days after the effective date.”
The contract states that a facility will have to be completely constructed no later than one year after the recording of the deed of conveyance, in accordance with the plans approved by the county. Furthermore, Certified Towing must have “20 full time equivalent employees making a salary above the average wage for the county, as shown by the Labor Market Statistics...” no later than 36 months after the recording of the deed to the property. This means that the 20 employees who will be working at the facility will not be making below the average wage, but instead will be making a salary above the average wage for the county.
If Certified Towing does not meet these requirements, they will have to repay up to $180,000 back to the county.
No tax exemptions were promised to Certified Towing, which means that the company will be paying taxes on its facility at the normal rate for businesses in the county.
Some questions have been raised because of this contract, such as: can any business just ask for land from the commissioners to expand their operations? Why choose Certified Towing as opposed to a larger business?
Greene Publishing, Inc. contacted Chairman Rick Davis, who is also part of the North Florida Economic Development Partnership, for answers.
“This contract is designed to stimulate economic development for the county,” said Davis. “We're not just giving this property away. There's stipulations that [Certified Towing] needs to follow.”
Davis mentioned that, from the beginning, he tried to get Certified Towing to purchase the property for a larger price. In the end, the county agreed to accept Certified Towing's negotiation.
He also stated that the reason the 9.84 acres was not given to a new company is because the commissioners have not received any requests for new businesses to expand in Madison County.
The Madison County Development Council acquired the 9.84 acres, more or less, in 2004 and the county acquired the property in 2007. Since it was acquired, the property has been available for new businesses or expansions of existing businesses. During that time, few, if any, offers were made for this property, thus explaining why the commissioners donated the land to Certified Towing.
Davis also added that if a business would like to expand, or if a new business would like to ask for property, they can approach the commissioners with their request.
The determinative factor in the commissioners granting such a request is usually the likelihood for job growth and economic development in the county. For the commissioners to provide real property to a new or expanding business, the business will most likely be expected to give guarantees similar to the ones set for Certified Towing. However, all inquiries are welcome. Those interested should contact Madison County Coordinator Brian Kauffman at (850) 973-3179 to get started.