Dateline: August 17, 2006

Aldermen okay tax abatement for Sonic

By Roger Estlack, Clarendon Enterprise

The Clarendon Board of Aldermen approved a five-year graduated tax abatement for the new Sonic Drive-In being constructed on US 287 during their regular meeting last Tuesday.

The 2-1 vote by the aldermen overrode a June 26 recommendation by the Clarendon Economic Development Board, which had voted 4-3 against an abatement for the property.

CEDC President Will Thompson, who favored the abatement, said his board’s vote was the closest in years and came only after lengthy debate on the question. He said the CEDC was split on the issue between wanting to attract new businesses and trying to protect existing businesses.

“We went back and forth several times, and, at any point during the debate, the vote could have gone either way,” Thompson said

Thorne Stallings represented Sonic’s franchisee during Tuesday’s meeting and expressed regret for missing the earlier CEDC meeting.

“I understand the hesitation of giving an abatement to people who are new, but Sonic is a different type of restaurant,” Stallings said. “People who want to sit down together don’t come to Sonic. From what we’ve seen, we don’t have an impact on the mom and pop restaurants.”

Stallings said the Sonic represents a $1.1 million investment in the community that will create 50 full time jobs, including one manager and three assistants, and the restaurant anticipates its annual sales will exceed $1 million.

Aldermen Michael Tibbets and Bobbie Kidd voted in favor of the abatement, which exempts 100 percent of the improvements on the property for two years, 75 percent the third year, 50 percent the fourth year, and 25 percent the fifth year.

Alderman Tommy Hill opposed the measure, and Alderman Janice Knorpp was absent.

In other city business, the board approved an ordinance prohibiting disturbing the peace and setting the maximum fine at $2,000, and a motion was approved to engage Foster and Lambert to perform the audit for the 2005-2006 fiscal year.

Aldermen also discussed the taxation of personal property in the city. Currently, the tax on cars, boats, planes, and other personal property brings in 23 percent of the city’s total ad valorem tax revenue.