Repeal of annexation stalls

A proposal to repeal the City of Holly Springs annexation ordinance by Mayor Sharon Gipson has stalled while aldermen weigh the benefits.

The proposal to repeal it in its entirety has drawn vigorous debate in two consecutive meetings of the mayor and board.

A proposal to keep Marshall Steakhouse in the annexation plan was pitched at a recent board meeting by owner Randall Swaney.

He said he wants to expand his development on Highway 178 to add a 100 slot R.V. Park and 50 cabins. He needs to be connected to a sewer system, he said.

Swaney offered to pay to run a sewer line from the city’s nearest point on Highway 178 to the steakhouse property if the city would maintain it once built.

Some talking points he included were:

• the business saw a 20 percent growth in sales last year over 2019, even at 50 percent capacity (160 inside, 100 outdoors).

• the number of employees would double from 40 to 80.

• some 2,500 visitors a week come to the facility from surrounding states of Kentucky, Arkansas, Alabama, and from places like the Mississippi Delta and Mississippi State University.

• resort status allows alcohol sales.

• plans include building seven more steakhouses that will be located about 30 miles outside major cities • to keep the country ambiance.

• attendance on Friday and Saturday comes to about 800 a night.

• the steakhouse is located about one mile west of Kingdom Hall of Jehovah’s Witness which is the last stop on the city’s sewer on 178.

• an estimated $8 million in annual revenue would bring the city about $100,000 a year in sales tax.

• the cost to run sewer to the steakhouse is estimated to be $250,000. He would ask the city to decrease his city property tax until he recovers his investment in the sewer. Currently the steakhouse is assessed only county property taxes.

• other properties along the way could be tapped into the new sewer extension.

“I am asking you to keep this on the table,” Swaney said.

In discussions that followed, Ward 1 alderman Bernita Fountain asked if the city would draw hotel tax.

Swaney said the city would get taxes off the cabins ($150/night for larger cabins; $100/night for smaller ones) as the state allows.

Fountain asked what cost the city would be liable for.

Attorney John Perry said Holly Springs Utility Department would maintain the sewer after it is built.

Gipson cited concerns the city would have to maintain the sewer once built and any roads in between. She said the city already is dealing with drainage issues and cannot afford more outlays at this time.

Swaney said the state maintains Highway 178.

Gipson cited extra police officers and related expenses.

Ward 3 alderman Colter Teel said he wants a hard-line figure, an exact figure of the cost to the city. He voiced concerns about inflation and who would obtain bids and work with construction crews.

Swaney said contractors would follow the utility departments directions.

Fountain spoke for the project.

“I listen to one person who does want to be annexed,” she said. “It’s a chance we shouldn’t miss. I understand we want revenue from the steakhouse and racetrack.

“We should take a chance. If this side of town wants to be annexed just for sewer, I think it is a win win.”

Fountain cited the $900,000 in money the city already has in the bank.

“The last administration left our city in great (financial) shape,” she said. “If spending money on something to bring back hundreds of thousands of dollars that come in every year without doing anything (the city should). We have not experienced any growth.”

She said the cost for additional police and fire protection would not be that great.

“I think it would be worth a chance,” Fountain said.

Teel weighed in.

“It is going to be hard for me to vote something down, but I agree with Alderman Fountain, the revenue could be brought in. I want to table it. It would be hard to tell a man, no, thank you.”

District 5 state representative John Faulkner spoke for the project.

“When you think about annexation, you think about the future of the city when we allocate money in Jackson,” he said. “Lots of it is based off the population. There is something magical about that number when you get close to 10,000 population.

The state recognizes north Mississippi as the fastest growing area in the state, Faulkner said.

“We know what’s getting ready to happen in that area,” he said. “If you don’t annex now, you may miss the chance. Everything will be land-locked. Growth is coming when we land an industry in this (Springs) industrial park. We want to grow our space.”

He said there is not enough housing already.

“We could bring that money right here. It would more than take care of itself,” Faulkner said.

Teel said more homes mean the tax rates going down for residents.

Roof tops help spread the taxes and increase the tax base, Faulkner said, and give the city more operating money.

“It’s already happening in Byhalia,” Faulkner said. “The same thing in Chickasaw Trails. We’re talking about future growth that will impact the city long after we are gone.”

Jerome LeSueur, member of the board of directors of the Marshall County Industrial Development Authority, said citizens do not want to miss out on growth.

“We already have the highest taxes than any city around and the highest car tags,” he said. “It seems like Holly Springs is being forgotten about. Even in Chickasaw Trails we use bargaining power. This is the county seat and you seem to forget about that. It seems like progress should be from inside out. There are plenty of resources from Jackson, but it is coming from the outside in.”

David Carter spoke about opportunities.

“Opportunities sometime come with risks,” he said. “We have to take opportunity when it is available. If we don’t take it now, we may lose it. The house tops and businesses will lower taxes for all of us.”

Fountain added more to the discussion.

“I am not a board member beyond compromise,” she said. “The area Swaney is talking about, that’s a win. If we don’t accept the entire annexation, we should be willing to at least look at the option of doing Phase I. We can do it a section at a time.”

Ricky Raimey, a businessman in Holly Springs, is in favor of annexation. He said his father’s land was annexed near Hill Crest Cemetery. Growth has gone all the way down the hill and out to Walmart, he said.

“I’m paying high taxes now,” he said. “I want to make this a better city so if my children want to come home, they have a place to come home to.”

Elder Eddie LeSure said he left Holly Springs in 1958 and came home a few years ago. He said he thinks the city was in better condition then than now.

“Strike while it’s (the iron) hot,” he said. “Because we have had all these years with no growth. It’s time for us to move. I think we should strike while it’s hot.”

Thelbert Lesure, who said he lives on Park Street (Avenue), wants the annexation plan canceled in its entirety. He said you cannot equate growth with annexation.

“The only thing we get out of annexation is more debt,” he said. “We got a lot of debt in the city. There are so many issues you could be spending money on to make quality of life better.”

Ward 2 alderman Andre Jones wanted more time and made a motion to table the issue.

“I’m pretty much in the same position as Tuesday night,” he said. “We have paid a lot of taxpayer money for this annexation (study). I don’t think it is time to make a decision on annexation. We can negotiate more. At this time, I feel like it’s not feasible to vote on this.”

His motion to table the discussion was seconded by Teel and passed by a vote of 5-0.

The city board was scheduled to have a regular meeting on Tuesday night of this week.