County, Municipalities Reach Compromise On Urban Growth Boundary Amendments

Huntsville, TN (2011-03-21) Just days before a scheduled mediation hearing between Scott County and the Towns of Huntsville and Oneida, the parties have settled on a compromise that would allow for the second amendment to the county’s 20-year Urban Growth Plan in the last 4 years.

In an attempt to avoid the costly measure of state meditation, County Mayor Jeff Tibbals presented a compromise plan to the Scott County Commission for approval Monday night, an accord reached with Oneida Mayor Jack Lay and Huntsville Mayor George Potter that removed both residential and industrial development sites inclusion in the city’s growth plans. In the original plan, the municipalities of Oneida and Huntsville incorporated the county-owned industrial parks in Helenwood and near the Scott County Airport, along with an upscale residential development near the airport, into their urban growth boundaries. In the compromise, those areas were removed, as county officials feared inclusion of those development sites by the Towns might deter economic growth and future development. While Oneida conceded the areas near the airport, Huntsville exchanged its inclusion of the Mid-County Industrial Park for a 300-ft swath along Scott Highway from its current boundary near Fill ‘N Foods to the bridge at New River. The creation of a 20-year urban growth area for municipalities was first required by state law in 1998. Since then, the local boundaries have been changed twice; both at the request of the Town of Huntsville. Under state law, properties inside the urban growth boundary of a municipality may be annexed by petition or ordinance. If a municipality wants to annex an area outside its permitted boundary, the issue must be placed on a public referendum. Properties contiguous to the current boundary of less than ten acres may be taken by the municipality provided the landowners petitions for annexation

The annexation of property by any municipality is about more than just taking property. A portion of sales tax revenues generated by businesses are returned to the controlling local government agency. If a Town annexes an existing business into its corporate limits, its entitled to any growth in sales tax revenue from that business, while the county continues to receive sales tax receipts equivalent to the average sales tax generated by that business over the last three years. At the end of fifteen years, the municipality receives all sales tax revenues. Revenue from any new business venture in the newly annexed area would be remitted to the Town. “With times the way they are, pretty soon there won’t be any County left,” said Commissioner Ernest Phillips.

Regardless if local sales taxes are receipted to the County or one of the local municipalities, the local school systems receive fifty percent of the total local option sales tax revenue generated.

The vote was 13-1 in favor of accepting the compromise, with Phillips casting the lone dissenting vote.

In other business Monday night, the Commission:

· Formed the Scott County Public Records Committee, in accordance with State Statute, to provide the orderly disposition of public records. Those seated include Commissioner David Jeffers, Judge Jamie Cotton, genealogist Rhonda Shelton, and ex-officio members County Clerk Pat Phillips, County Register Benjie Rector, and County Historian Kathleen Pennington;

· Went on record as both supporting and opposing several pieces of potential legislation in Nashville, including opposing “The uniform Access, Competition, and Consumer Fairness Act of 2011”, as being financially disadvantageous to Highland Telephone Cooperative;

· Declared April 16, 2001 as “Great Scott – Keep IT Clean Day” in Scott County, an annual event; and,

· Declared April 2011 as National Child Abuse Prevention Month in Scott County.