PANAMA CITY — The Bay County Commission is pulling a double shift Tuesday.
At their regularly scheduled meeting at 9 a.m. in the Government Center, commissioners are set to decide whether to offer Eastern Shipbuilding Group a property tax break over 10 years. The property tax exemption would be in return for the company adding a warehouse that would create at least 25 new jobs.
Then at 6 p.m., the commission will listen to a utility consultant and the public at a workshop intended to brainstorm ideas for reducing water and sewer rates for the about 5,300 people on the county’s retail system.
In the morning session, the ordinance granting the property tax exemption would save Eastern $6,234 in ad valorem taxes and another $5,336 in tangible property taxes the first fiscal year. The agreement is for 10 years, and it’s unclear how much Eastern would save in property taxes for the remaining nine years. That amount depends on the assessed value in each of those years.
The proposed ordinance states the commission finds the expansion of employment opportunities by the addition of manufacturing equipment and support equipment for shipbuilding will result in the creation of at least 25 more full-time jobs that will be above the average wage in our area, “and this would be in the best interest to the public.”
In a letter to the commission, Northwest Florida Holdings Inc. Chief Financial Officer Scott Colemere, who could not be reached for comment Monday, outlines the company’s expansion plans related to Eastern.
He said Northwest Florida Holdings is making a significant capital investment in its new warehouse “to accommodate new contracts and job growth and is seeking the property tax exemption under state law for building.”
“The requested exemption will apply only to the new building and not to the existing land, building or personal property,” he states in the letter dated March 2.
He adds that the company is investing about $1.35 million in the construction of this building that will allow Eastern Shipbuilding Group to continue to hire additional personnel.
“Eastern plans to hire at least 25 additional employees with needed positions in almost all categories of vessel construction,” he writes. “Currently, Eastern has 67 open positions, which we are seeking employees with first-class positions making at least $18 an hour (plus significant overtime if desired, raising the average total hourly wage considerably). In addition, Eastern’s training program for shopfitters, pipefitters and welders currently has 46 trainees and instructors. This program is paid entirely by Eastern Shipbuilding.”
At the evening utility workshop, Gerald Hartman of Hartman Consultants is scheduled to make a presentation, with board discussion and public participation following. For months, residents in the Cedar Grove area have been complaining vociferously to commissioners about skyrocketing utility rates, which are primarily tied to debt the county is having to pay on the North Bay Wastewater Treatment Facility. Only 80 customers have hooked up to that plant on Edwards Road.
Wendi Ringenberg, a resident of the former Cedar Grove who has been outspoken in her criticism of the current rates, said she hopes the meeting accomplishes something.
“Our hopes are that they have done as we asked and utilized their financial and legal staff to explore options for sharing the infrastructure debt with the entire county, rather than have the $29 million debt burdening a mere 5,200 households,” she said. “Also, I hope that the commissioners have done some research themselves and contacted state officials if necessary.”