By Jeremy Weldon

Last week’s decision by the Sardis Mayor and Board of Aldermen to continue with a comprehensive study of the town’s zoning boundaries, and other ordinances, including the possible annexation of the J.C. Sexton Industrial Park, has already had negative effects for the area workforce, according to Joe Azar, Panola County’s top economic development official.

“We were sincerely hoping the Sardis board’s annexation study would be taken off the table, but when they moved ahead we were expecting some bad news from our industries. Officials had already warned us that corporate owners would react in a negative way and we saw that last week from both United Solutions and Inca Presswoods,” Azar said. “We are working hard to minimize the damage that has already been done in hopes that the Sardis aldermen begin to listen to what our local industries are saying.”

Specifically, United Solutions parent company, G2 Capital Advisors CEO, waited less than 12 hours after last Tuesday’s board meeting in Sardis, to announce that new equipment already headed to the Sardis factory had been diverted to another location that produces similar injection-molded household plastics.

G2 CEO Tim Durkin, reached by telephone at his Naples, Fla., headquarters was puzzled by the board’s decision, but adamant that corporate opinion of the Sardis factory had been changed by the decision of the aldermen.

“A lot of hard work has gone into improving United Solutions in the past few months, including a benefits program and now we hear that taxes may double besides whatever else will come along with an annexation of our property. It’s a bizarre process and we can’t understand why they wouldn’t have told us about this upfront,” Durkin said.

“We had a deal worked out with the county that was good for everyone involved and now this is dropped on us from nowhere,” he said. “I have to admit it’s very disappointing, and I’m not sure that any resulting job loss will ever come back to Sardis.”

A recently announced expansion adding up to 50 new jobs at the Sardis industrial park are now on hold, and at least some of the equipment intended to upgrade the facility has now been shipped elsewhere. Azar said he has stayed in contact with Durkin throughout the process, and has assured the CEO he has not given up on negotiating with the Sardis town board.

One of the leading proponents for conducting the study, alderman-at-large Michael Price said he has also learned information about future expansion plans from local industrial leaders, and has tried to make detractors understand he and other aldermen only want to see the results of a study and will not move forward with annexation attempts if it’s proven that jobs will be lost.

“I only what is best for the Town of Sardis and the people who live and work here every day,” Price said. “No one has to worry about the Sardis board voting to do anything that will cost us jobs. Jobs are priority one for us, and we want everyone in Sardis to have the best.”

Sardis’s Tourism Director and Project Manager Greg Davis has refuted the assertions of Azar, on behalf of Panola Partnership, saying that his municipal government experience prove he understands what is economically feasible in an annexation process.

Davis was mayor Southaven for 16 years and presided over unprecedented growth and economic boom during his tenure. His recommendation to the town board to study annexation was based on his knowledge of industry and acceptable levels of taxation, he said last week.

Besides United Solutions, Sardis’ other main employer, Inca Presswood Pallets is also weighing its future investment at the industrial park, according to plant manager Dale Hart.

Hart, who also managers the company’s Ohio facility, said Inca would have no benefit from an annexation, and would only suffer with a higher tax burden. Inca already enjoys a lower fire rating than the Town of Sardis (thanks to an umbrella policy that is based on the Ohio plant’s rating) and has good utility service now.

“Inca is Sardis is already paying five or six times more tax than in Ohio and we just can’t see any benefits from an annexation. Business has been slow in Sardis and we’ve been trying to bring in some things that we believe will strengthen the plant, and it’s a consideration as we decide where to put the expansion,” Hart said.

Inca has been studying the feasibility of installing a new extrusion line in Sardis, but Hart said those plans have been put on hold as company officials wait to see what the board of aldermen will decide. He said the threat of any additional operating costs – even if delayed 10 years with a tax abatement – will severely impact local expansion plans.

In the meantime, Azar said he will continue to work with corporate decision-makers, keeping them updated on the latest developments, and pursue lines of communication with the Sardis aldermen.

“Those are good men and women serving on that board, and I honestly believe when they understand the devastation that any more annexation talk will cause, we can come to an understanding that it’s just not right for Sardis at this time,” Azar said.