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153 Regular Meeting December 11, 1989 Page 3 The Mayor asked if anyone wished to make comments regarding this matter. R. G. Phillips stated he opposes the request made by Prime Group/VF Factory Outlets and felt it would do great harm to local merchants if the City subsidizes this project. He opposes the City offering favors to bring business to San Marcos. Ofelia Vasquez-Philo expressed concerned for our unemployed citizens. She stated we need jobs in San Marcos and believes this project could supply jobs. She stated if our citizens could find employment, they would better be able to make purchases from local merchants. She thought if San Marcos did not pursue bringing this business here, they would just locate somewhere else, and she encouraged the Council to bring them to San Marcos. Ronnie Burton stated he welcomes new business to San Marcos but does not want them to be given an advantage over existing businesses. Drew Aubin stated he has bid on this project. He stated he knows it is a tough issue for the Council regarding local merchants. He thinks if San Marcos merchants offer competitive prices that the citizens will shop San Marcos. George Forrester stated he travels from Buda to New Braunfels on IH35 and thinks Prime Group has chosen the very best site for their mall. He thinks it will not be necessary for San Marcos to provide tax incentives for Prime to be profitable. Pat Price recommended the Council not give away the farm. He stated the merchants will resent big business being given benefits and thinks the City should be fair with the existing merchants. If the City provides tax abatement, he thinks the City would be conflicting with free market competition. Vicki Fruit stated Prime locating here would provide us the opportunity to get Austin and San Antonio dollars in San Marcos. She stated if the property is annexed, we would benefit from sales taxes collected. She stated Prime estimates one to two million customers would corne to San Marcos annually, and that it would be a boon to the job market in San Marcos to provide 270 fulltime and 370 part-time minimum skilled jobs. Bob Barton stated the City would receive criticism if they subsidize new business. He felt their estimates regarding sales taxes are high. He stated they own property here, and it would be beneficial to the City to raise the property taxes from the present value on open space. He stated the merchants want an even Playing field and that the Council needs to be fair. The merchants do not like to pay taxes either and needed to be treated equitably. Darlene Dorsey wants the Council to be fair towards the merchants. R. G. Phillips stated the promoters may promise jobs and then not deliver. Mr. Hart stated if they do not deliver the terms set out in any agreement entered into, the agreement will not corne to fruition. Bill Coddington stated Peyton, portions of Wide Lite and International Electric are vacant and that the City could use money to better advantage by providing low-interest loans to help businesses. Merchants should be given fair treatment and the City should help existing businesses rather than fly by night businesses. Danny Dever stated competition is healthy and that citizens should shop San Marcos first, or they are being hypocritical. He thinks we should keep tax dollars here if we can. Mayor Morris stated the goal of the Council in providing tax abatements to bring business to San Marcos is in exchange for the business providing jobs for the City to temporarily suspend taxes. The Council will return to this discussion item when regularly scheduled on the agenda later in this meeting. Mayor Morris introduced for consideration Item 7. A. on the agenda, adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THAT ORDINANCE ADOPTED SEPTEMBER 11, 1989, WHICH SET FORTH AN ITEMIZED ESTIMATE OF THE EXPENSE OF CONDUCTING EACH ADMINISTRATIVE UNIT OF THE MUNICIPAL GOVERNMENT OF SAID CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1989 AND ENDING ON SEPTEMBER 30, 1990, AND