Leeds — In order to help revitalize a blighted property, the Leeds City Council is considering tax incentives for a grocery store planning to populate a vacant shopping center on Parkway Drive.

The property in question, which shares a parking lot with CVS Pharmacy, has been vacant for nearly five years. If approved, the city would allow a tax abatement of 1.5 percent for seven years, with a maximum of $100,000 abated per year.

“It's a blighted, empty property that gives the impression that Leeds is dying,” Mayor Eric Patterson told the council.

The abatement, he said, would help Mitchell Foods, LLC, renovate the shopping center, which would attract new business, as well as to keep CVS Pharmacy in town. The company has plans to repave the parking lot, clean the area, fix lighting and make other cosmetic adjustments that would not only draw customers to the grocery store, but to other businesses that have discussed moving to the complex. Patterson said one additional store is already under contract to accompany the unnamed grocery store at the shopping center, and another is in talks of locating there, as well.

“We're not paying them to come here, we're paying to revitalize the area and attract possibly three businesses and to keep one,” Patterson said. “There are some incentive deals out there that I'm not happy about, but I'm in favor of this one.”

From a financial perspective, Patterson said the store could generate more than $200,000 per year for the city in sales taxes, as well as occupational tax revenue and business license fees, which would offset the $100,000 per year abatement. The revenue would go directly into the city's coffers at this location, rather than to paying the Bass Pro Shop bonds as it would had they chosen to locate in the Exit 140 area.

While no members of the public spoke for or against the deal, council members were divided as far as their opinions on the matter.

“I don't see it making as big a splash in Leeds as you think it will,” Councilman Johnny Kile said. “Unless it's a big-dollar store like a Publix, it won't bring many outsiders in.”

He also expressed concerns that it will split traffic from the other grocery stores in the area, which could hurt their businesses possibly to the point of closing.

Councilwoman Susan Carswell called it a win-win situation, to have the area cleaned up and to generate any tax revenue from a building that has sat vacant, while Councilman Ross Bartee noted that many grocery stores won't even consider moving into an existing location.

Councilwoman Charlotte Earnest said she was impressed and flattered “that this store chose Leeds and came to us looking for a home.”

However, Councilman Kenneth Washington believed that if the business “chose” Leeds, they shouldn't accept any tax incentives from the city.

“I didn't vote for a 1 cent tax increase to give away 1.5 cents,” he said.

He also expressed concern that the Bass Pro Shop investment was supposed to be enough of a draw to bring businesses, but “now, since we've got it, we have to give 1.5 percent to everyone who walks through the door and says they want to move here.

“If we have to give away everything to get businesses here, what will we have left to give to the people?” Washington asked. “$700,000 would fix my community up pretty good.”

Washington voted against a motion to suspend the rules in order to vote on the resolution during Monday's meeting.

The council voted 4-2 to find that the project is valid for the funds through Amendment 772, as required by the public hearing, with Kile and Washington voting no. The vote, however, does not grant the abatement, and the discussion was treated as a first reading of the resolution.

The matter will be discussed again during the next regular Council meeting.