City of Harrison discovers major limitations on local economic development grants

Getting funds from the City of Harrison for economic development will be harder than initially indicated.

At the Harrison City Council meeting on Thursday night the council had to take a step back on their plan to award an economic development grant to Jamie and Angela Akers, restaurant entrepreneurs in Harrison.

Previously Akers had appeared at the committee meeting on July 14^th after applying for economic development funds the city said was available for local businesses who were looking to expand their business and help with economic development.

At the end of the discussion the council seemed in agreement that they would like to move forward with Akers’ request but had a few other facts to find out between that night and the full council meeting.

CLICK HERE TO SEE THE DETAILS OF THE INITIAL MEETING REGARDING LOCAL ECONOMIC DEVELOPMENT FUNDING

Attorney Grant Ragland looked deeper into the city’s ability to give out taxpayer money to private businesses and sent out a memo that said the state prohibits municipalities from giving public money to private businesses unless those funds are being used to provide economic development services. He said that the state very specifically defines what economic development services qualify for such funding.

He then listed qualifying economic development services that include the following:

 “’Economic development projects’ means the land, buildings, furnishings, equipment, facilities, ‘infrastructure” and improvements that are required or suitable for the development, retention or expansion of: (a) manufacturing, production and industrial facilities; (b) research, technology, and development facilities; (c) recycling facilities; (d) distribution center; (e) Call centers; (f) Warehouse facilities; (g) job training facilities; (h) regional or national corporate headquarters facilities; and (i) sports complexes designed to host local, state, regional, and national competitions, including without limitation baseball, softball, and other sports tournaments.”

This realization caused Akers to withdraw his application. He addressed the full council on Thursday saying, “I would just say, if I did have anything to say to the council, next time that [you all] have something like this, especially taxpayer money, and you bring it my attention make sure you know what you’re talking about.”

“I was a guinea pig I feel like. I was the first one to stand here,” he continued.

Mayor Jackson said that when he called Akers to tell that it didn’t appear his application was going to qualify for funds Akers withdrew his application.  He indicated that he felt like he was going to be embarrassed in the process, because of the implication that he was asking the city for money and was then denied.

“Don’t manipulate it to work for one and not the other,” Akers said, “…I almost feel like somethings are being manipulated to help this person and not this person. And I hope that isn’t true.”

Mayor Jackson replied, “It’s not.”

Akers continued, “And I hope that the city council people, employees that are working hard with others to get that done would at least give me a call and work that hard for me because that hasn’t been done.”

Mayor Jackson said the city has given out five additional applications for funding in the last week and he has followed up, giving each of them a copy of the attorney’s letter about the specific definition of economic development. One of those potential applicants owns The Dude by HRAFN, which started as Familiar Beauty, a skin care product manufacturer. She indicated that she may be applying for funds in the future to hire new employees to help increase production the products they continue to manufacture in Harrison.

Dr. Billy Ray Lewis, who has addressed the council multiple times in recent months with the Transparency in Government Group regarding a different situation with the economic development partnership between the city and the Harrison Regional Chamber of Commerce, approached the podium and said that he agreed with Akers on his comment about being a guinea pig.

Lewis asked who it was that approached Akers about applying, whether it was on his own or if he was asked by someone at the city. Mayor Jackson then told Lewis that the council was not interested in him addressing them on this matter. When Lewis continued to speak Jackson told him to take his seat and eventually asked Police Chief Chris Graddy to escort Lewis away from the podium, but at that time Lewis finished his comments and sat down on his own.

Any new applications for economic development funding may be considered by the council’s finance committee at their next meeting on August 11^th.