Warrior business owner asks for abatement

Published 9:00 am Wednesday, April 6, 2016

The Warrior City Council heard from Matt Lawrence, owner of the Huddle House restaurant, during the precouncil meeting on Monday.

Lawrence claimed that he was offered a tax abatement deal for three years if he annexed the property into Warrior prior to opening the restaurant. Lawrence said he was promised the abatement by Warrior Mayor Johnny Ragland in a private meeting.

Email newsletter signup

Ragland said he discussed the possibility of tax abatements, but it was never promised. Approval of tax abatements would have to be given by a majority vote of the council.

Lawrence appeared in front of the council prior to building Huddle House. He asked the council about some cleanup issues as well as installing new street lights near the restaurant. City leaders said recordings of the council meeting show that Lawrence did not mention tax abatements.

The council approved the requests, as well as a request to waive the building permit fee, contingent on the waiver being allowed legally, according to council members. The Alabama League of Municipalities said the waiver of the fee was not legal so the fee was paid.

The council asked Lawrence during the meeting what else they could do to encourage the business to locate in the city and no tax abatement was mentioned.

Lawrence said he believed the matter was already settled by a handshake deal with the mayor so he did not bring it up in the council meeting.

Ragland said he told Lawrence that a tax abatement was a possibility but assumed, if he were interested, he would follow up on the request.

The council also told Lawrence that, even if the mayor had promised the abatement, that wouldn’t be legally binding unless it came before the council. Lawrence blamed the misunderstanding on his youth and naivety but believed the council and city could find a way to change the tax situation.

Police Chief Ray Horn, who Lawrence said was also in the meeting, said his impression of what the mayor said was that it was a possibility and Lawrence would have to ask the council for the abatement if he wanted that incentive.

Lawrence insisted that he was promised the tax incentive and repeatedly asked the council to “make this right.” Council members said they would be willing to help in the future with any businesses but said they do not believe there is anything they can do at this point because it is an existing business.

Mayor Pro Tem Jackie Hudson Wesson said it would be no different that giving a tax abatement to any other existing business, which can’t be done.

Lawrence said he was promised a 2 percent tax return of the 4 percent paid to the city for the first three years the restaurant was operating.

He is currently not receiving any abatement of his sales tax. The council asked what amount of taxes have been paid in the approximately five months the restaurant has been open. Lawrence said he didn’t know.

Lawrence said his father and grandfather had operated businesses in the city for more than 35 years but that he would not be doing business in the city anymore. He also asked the council about deannexing the Huddle House property if he doesn’t receive the retroactive tax abatement.

Huddle House opened in October of 2015 near the interstate. Lawrence said developers have approached his family regarding building other restaurants or stores on the adjoining properties.

The council said they will check with the League of Municipalities.

In other business, the council:

•approved the purchase of an 8-foot table and chairs for the city’s conference room.

•approved the Jefferson County Multi-Hazard Mitigation Plan.

•scheduled a work session to discuss the Huddle House tax issue and other city business for 5 p.m. on April 14.