Mayor Musselwhite Announces $2.1 Million Payment, Highlighting Positive Outcomes
Mayor Darren Musselwhite informed the Board of Aldermen about the last payment of $2.1 million, describing it as a significant achievement for Southaven. He emphasized the positive outcomes the city would continue to experience as a result of this endeavor.
The project qualified for the Tourism Rebate Program offered by the Mississippi Development Authority, which served as an incentive for the developers to construct the outlets in Southaven. Under this program, Southaven was authorized to provide sales tax rebates of up to 30% of the total construction cost, amounting to approximately $34 million out of the $115 million budget.
Essentially, the city committed to returning a portion of the sales tax revenue generated by the development, thereby offering the incentive to the developers. Initial estimates anticipated that the outlets would generate around $120 million in sales, resulting in $8.4 million in sales tax revenue for Southaven.
Mall Opened In 2015, Meets Financial Obligations
Situated at the intersection of Interstate 55 and Church Road, the 33-acre, 300,000-square-foot outdoor mall opened its doors in November 2015. Musselwhite explained that the city had a six-year timeframe, starting in 2017, to fulfill its financial obligations.
Considering the projected timeline, Musselwhite acknowledged that it initially seemed like a long wait before the city would begin receiving sales tax revenue. However, he expressed satisfaction in announcing that the final payment had been made after approximately six years.
With the completion of the payment, Southaven will be able to allocate the $2.1 million back into next year’s budget for other important priorities, offering considerable assistance during the upcoming budget discussions.
The successful conclusion of the sales tax rebate marks a significant milestone for Southaven, highlighting the city’s commitment to economic development and its ability to attract and support major commercial projects.