“It was a good night at the council, a great day for Quitman,” summarized Mayor Randy Dunn upon completion of last Thursday’s city council meeting. He added that progress had been made on the issue of housing, on lodging and for investment in the city.

The council unanimously approved two incentive agreements between the Quitman Development Corporation (QDC) and real estate developer Scott Johnson. The development is targeted for a 10-acre parcel which Johnson has purchased behind (south of) Brookshires Grocery. 

The first agreement is a grant valued at $252,000, which will be used toward construction of a hotel. The agreement is based on a maximum of 90 rooms. 

The second, valued at $336,000, will be used to facilitate construction of an apartment complex, with a maximum of 140 apartments. Both projects are being planned for the tract south of Brookshires.

Following approval of the incentives, the council approved Chapter 380 agreements which provide ad valorem tax rebates for both projects. The rebates are offered in stepped levels: 80% for years one and two, 50% for years three and four, and 20% in year five. The hotel project will also benefit from a 50% rebate on hotel/motel tax for ten years.

Johnson stated that he expects groundbreaking in 2023 followed by 14 months of construction.  

In related action, the council also approved a Chapter 380 tax rebate incentive for the previously-approved residential development project on Cedar Drive. The five duplexes planned for Cedar Drive necessitate improvements to city infrastructure. The rebate for this project is capped at $50,000.

A public hearing preceded the council meeting to allow residents an opportunity to discuss the 2023 budget and 2022 property tax levy. There was no public comment on either count. The hearing was closed and the council put the budgetary issues to a vote. 

The 2023 Quitman Development Corporation budget, the 2023 city budget, and the 2022 property tax rate were all unanimously approved. The council approved a tax rate of $0.5436. This increases revenue which should raise a typical homeowner’s property tax about $6 per month. 

Regarding the property tax increase, Alderman Steve Glenn commented, “This is a hard thing for us to do, but it has to be done.”

Dr. Greg Eberhart, QDC secretary/treasurer, provided a status report of the QDC budget. He advised that it had been a very good year for sales tax in the city, and the QDC held a budget surplus. He briefed three items of note: the creation of a $4,000 line item for bonuses paid to the city manager and the assistant city secretary; an increase in the signage grant program up to $40,000; and an increase for special programs.

In separate action, council approved the QDC to expend up to $23,500 for the installation of a single electric automobile charging station. The station, a VERDEK CT4000, dual charger, will be installed in the northeast corner of the parking lot behind Jan’s restaurant, just off the square.

City Manager Rodney Kieke commented that with a single charging station in Sulphur Springs and Lindale, the installation is another effort to draw people into Quitman, where they can charge their vehicle and visit local businesses

 “We can easily add three more chargers at that location,” Kieke stated.

Council also unanimously approved increases to recreational vehicle (RV) fees. Kieke advised that Quitman’s RV fees have been unchanged since 2008, and it was time for an adjustment. Daily fees have been increased from $20 to $30, weekly fees from $120 to $180, and monthly fees from $360 to $425.

Three annual interlocal agreements with Wood County were approved for the purposes of tax collection, emergency management and designation of the fire marshal.

Following a brief executive session, Kieke was empowered to act on behalf of the council and make contact with a resident regarding a property issue. 

Mayor Dunn recognized librarian Delene Allen for achieving 20 years of service with the city.  

All members of the council were present.