City Council to hire attorney to review lid bill vote 'irregularities'

by

Sydney Cromwell

After last month's narrow failure of the city of Homewood's attempt to be exempted from the statewide property tax lid bill, members of the City Council still have questions about the way the vote was held.

The Homewood City Council voted on Monday, Dec. 3, to hire an attorney to review the Nov. 6 election and the lid bill amendment. Ward 4 Councilor Alex Wyatt said the review was approved because of "irregularities" in the days leading up to the vote.

Leading up to the election, the constitutional amendment for Homewood to be exempted from the lid bill, which was voted on by all Jefferson County residents, had been listed as Local Amendment One.

However, a few days before Election Day, it was announced that the proposed measure would be listed as Local Amendment Two in Homewood, though it would remain Amendment One throughout the rest of the county. Wyatt said he was told by the Jefferson County Probate Court that this change was made to clearly track votes in Homewood compared to the rest of the county.

The change, Wyatt said, caused confusion among voters about their ballots and could have resulted in mistaken votes. He said there are questions as to whether the last-minute change was allowed under state law, which is the reason for hiring an attorney.

The council voted 9-0-1 — with Ward 4 Councilor Barry Smith abstaining and Ward 5 Councilor Peter Wright absent — to hire attorney Barry Ragsdale of Sirote & Permutt to conduct the review. Wyatt said Ragsdale has expertise in this area which many attorneys do not have.

Wyatt said Ragsdale will likely complete his study of the ballot vote within a matter of weeks and make a recommendation to the council. From that point, it is unclear what the council's next action will be, as Wyatt said there is not clarity on whether anything about the vote was done incorrectly.

"This gives us some real opportunity on this lid bill situation," Council President Bruce Limbaugh said at the council meeting.

The amendment failed with 87,141 people in Jefferson County voting against it and 84,595 people supporting it, according to election night results. Following the election, Wyatt had said there was not a plan to make a second attempt at a lid bill exemption at this time.

Also at the Dec. 3 meeting, the council voted to approve a set of incentives for developer Mike Mouron to develop a Curio by Hilton hotel and 10,000 square feet of retail on 18th Street South.

Ward 1 Councilor Britt Thames has previously said the incentive agreement is contingent on Mouron acquiring several pieces of property contiguous to the future hotel site — the former Little Professor Bookstore and Hatfield Auto on 18th Street South — and developing that property into retail.

In return for that expanded development plan, Thames said the city agrees to a lodging tax revenue share with Mouron. The city will abate 75 percent of new lodging tax revenue from the hotel for up to $10 million or 20 years, whichever comes first.

The incentive proposal would not impact sales or property tax revenue for the city.

Doug Neil, who has a five-year economic development contract with the city, spoke at the public hearing and said Mouron is expected to make a $50 million investment in the properties. Neil estimated $42 million in new fiscal impact for the city over 30 years, through tax revenue, permit fees and other associated costs.

Mouron declined to discuss details of the incentive prior to the public hearing.

The vote was 9-0-2 to approve the incentives, with Smith and Wright abstaining.

The City Council also:

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