City council hears TIF plan for McAtee Tire relocation

Also awards 4 percent raise to city administrator

The Jefferson city council at its regular meeting Aug. 22 gave a green light to proceeding with a development agreement with McAtee Tire and Service Center.

Mike Wahl, who purchased McAtee Tire from his grandfather Dean McAtee, plans to move the business to a new location on the west side of N. Elm in the west business park. The business would be near the pond there, and would be similar in design to the dental office to the north.

Jefferson city administrator Mike Palmer recommended an incentive of a 100 percent, seven year TIF rebate, based on a $600,000 minimum assessed value over 10 years. The agreement would rebate back to McAtee Tire the additional property tax paid because of development on the land.

Council member Harry Ahrenholtz and mayor Craig Berry had met with Palmer and McAtee. “I think it’s a valuable proposal. It’s an opportunity for McAtee Tire and I think it’s an opportunity for the city. This TIF offering makes sense for all parties involved,” Ahrenholtz said.

Ahrenholtz noted that McAtee Tire is a well-known business with a history of service to the community.

Wahl said he plans to expand the commercial side of the business, and the location on Highway 4 and close to Highway 30 will make that easier.  He said they hear from commercial drivers that their current location since the construction of the nearby overpass is difficult to get to. He said they’re reluctant to move to a location on Highway 30 near the casino because they don’t want to lose the consumer side of the business. The west business park is a good in-between location.

He said tire sales and all vehicle service would be at the new location. He plans to use Greg Carey of Churdan as the contractor for the project. Carey has been asked to use local subcontractors whenever possible.

A development agreement will require a public hearing to amend the current urban renewal plan. The council agreed by consensus to proceed.

In other business, the city council approved the second reading of ordinances to increase water and sewer rates by 3 percent. The third reading will be held at the Sept. 12 council meeting. The ordinance will be published and be in effect for the October billing cycle.

The city council approved extending Palmer’s contract for another year with a salary increase of 4 percent. His annual salary will be $93,600.

The council approved hiring Kyle DeMoss as a water operator at an hourly wage of $17.47. DeMoss is currently a Jefferson police officer. His transfer will require the hiring of another police officer, possibly incurring training expense for the city.


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