Buchanan adopts economic development policy for developers seeking incentives

The city of Buchanan is establishing a new economic development policy to help developers understand and apply for tax abatements and credits. City Manager Tony McGhee tells us the city commission approved the plan this week. He calls the policy a roadmap for any developer interested in locating in the city. 'Given the high cost of development we see in the marketplace today, anybody building anything new anymore generally needs some sort of incentive or tax credit to be able to make that project work economically,' McGhee said. 'Given the number of conversations we're having with developers and investors, we want to create a very transparent way for them to understand how our process works to request those abatements or tax credits.' McGhee says developers seeking things like tax credits and tax increment financing plans would still have to demonstrate eligibility, good standing with the city, land use compliance, financial need, public benefit, and the ability to complete the project. 'Whether it is an open obsolete building tax credit, this will be the lens at which we evaluate all those requests through.' The policy says incentives should be used selectively and only when they provide a clear public benefit, like creating jobs, expanding the tax base, redeveloping vacant properties, or increasing housing. It would generally discourage incentives for routine maintenance, projects already underway, or requests exceeding the amount needed to make a project financially feasible. McGhee says the goal of the new policy is to make the incentive process more transparent and consistent. You can read more about the policy right here.