Loxley renews contract with major furniture distribution center

By John Underwood / john@gulfcoastmedia.com
Posted 4/19/17

LOXLEY, Alabama — Officials in Loxley voted April 11 to renew a tax incentive agreement with a major furniture company which has been operating a distribution center in the town’s Industrial Park …

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Loxley renews contract with major furniture distribution center

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LOXLEY, Alabama — Officials in Loxley voted April 11 to renew a tax incentive agreement with a major furniture company which has been operating a distribution center in the town’s Industrial Park over the last five years.

The 60-month agreement, initially approved in April of 2012, used a Constitutional amendment allowing the town to split tax revenues with Turner Furniture Co. Inc., a subsidiary of the national furniture chain Ashley Furniture Industries Inc.

After its approval in 2012 the company reportedly consolidated two distribution centers, one in Mississippi and one in Pensacola, Florida, using the former Key Port Building, located in the Loxley Industrial Park off County Road 49 and U.S. Highway 90.

Founded in Chicago in 1945, Ashley Furniture HomeStore is now based out of Wisconsin and boasts 400 stores across the United States, Canada, Mexico, Central America and Japan with distribution centers in Wisconsin, Mississippi, California, Pennsylvania, Florida, China and Vietnam.

Ashley officials said while Home centers feature display models, when furniture is purchased from a Home center, the furniture is typically shipped from a distribution center. By law, furniture shipped from a distribution center is subject to the taxes of state and local governments where the distribution center is located.

The five-year contract allowed the town to split tax revenues 50-50, with an option to renew for another five-year lease with a 60-40 split.

In other business April 11, the council approved an ordinance to provide for the issuance of a $114,800 General Obligation Warrant for the purchase of new police cars for the town.

Under the terms of the agreement, through the U.S. Department of Agriculture, the town agrees to pay interest in the amount of 3.375 percent per year with payments due on Jan. 1 beginning in 2018 and continuing through 2022.

Other action at the April 11 council meeting included:

• Issued a proclamation on behalf of the Baldwin County Child Advocacy Center declaring April as “Child Abuse Prevention Month” in the town of Loxley.

• Issued a proclamation on behalf of the U.S. Coast Guard Auxiliary Flotilla 36 of Fairhope declaring May 20-26 as “National Safe Boating Week.

• Voted to donate $500 for the town’s annual Easter Egg Hunt which was held April 15 at the Loxley Municipal Park. The event is put on annually by the Loxley Volunteer Fire Department Auxiliary, this year with help from the Loxley Church of God.

• Received a project update from Goodwyn, Mills & Cawood on the town’s drainage project at Loxley Municipal Park. The project is being funded by a Community Development Block Grant.

• Purchased advertising in Gulf Coast Media’s annual graduation section at a cost of $250.

• Renewed the town’s advertisement in the annual Central Baldwin Magazine at a cost of $500.

• Approved a checking account to move funds for the increase in the gas tax revenue.

• Approved a resolution for the 2017-18 Municipal Water Pollution Prevention Program.

• Tabled bid approval for pre-event storm debris removal and disposal services pending attorney review.

• Approved a bid for disaster management and recovery services.