Biloxi cuts incentives for developers by 50 percent

BILOXI -- Two of the city's biggest developers saw their requests for tax abatements cut in half by Biloxi officials, who said Tuesday they need the revenue and think the 50 percent offered is fair.

Barrington Development, which plans to turn the vacant Santa Maria del Mar into an upscale hotel, and RW Development, which wants to build a bowling alley and other attractions at Big Play Family Fun Park on U.S. 90 at Veterans, requested the full tax abatement of 100 percent of their ad valorem taxes for the improved value of their projects for seven years.

Biloxi Council voted to give them 50 percent for five years.

A public hearing on the incentives is scheduled during the next council meeting at 6 p.m.

Jan. 5. Barrington Development also plans to ask for a tax incentive for the conversion of the former Casino Magic on the beach into a hotel and water park. The company received a five-year, 100 percent abatement for White House Hotel, which it restored and opened after the building had been closed for generations. Santa Maria and Casino Magic have been empty since 2005's Hurricane Katrina and Councilwoman Dixie Newman asked the council to provide the 100 percent incentive for Santa Maria.

"This is why D'Iberville is flourishing right now," she said, because the neighboring city is offering incentives.

Felix Gines and Robert Deming III joined Newman in voting for the 100 percent rate, but it was defeated by no votes from George Lawrence, Kenny Glavan, Paul Tisdale and David Fayard.

Lawrence said he thinks a share of 50 percent each from the developers and Biloxi's taxpayers is fair and Tisdale said although the city's economy is improving and Biloxi wants to encourage business to come to the city, "we are looking for revenue, revenue, revenue."

Mayor Andrew "FoFo" Gilich said the 50 percent abatement is "reasonable in our expectations."

He said, "We're Biloxi and we have fertile ground."

Deming, who will take over as council president at the next meeting, said these developers are investing "millions and millions of dollars" in Biloxi. Barrington Development also has been to Biloxi with plans for City Center, a mixed-use development downtown.

The incentive program introduced by the state for post-Katrina development near the water forgives the property tax on the improved value of the project, but not on the land or the school tax.

"They still pay property tax on the portion not improved," Deming said, and the new development brings sales tax and jobs.

The council also approved a plan to have all tax abatements wgo through the mayor for evaluation and recommendation.

In other action at Tuesday's meeting the council:

-- Approved the final payment for the construction of MGM Park, the city's new stadium.

-- Agreed to create an engineering department to oversee the remaining three years of the $365 million Biloxi infrastructure project.

-- Removed from the agenda the first reading of an ordinance to set the standards for short-term rentals.

This story was originally published December 29, 2015 at 4:48 PM with the headline "Biloxi cuts incentives for developers by 50 percent."