July 9, 2025

Council Meeting Minutes 6-24-2025

Agenda

Minutes

CITY OF SOUTHSIDE
COUNTY OF ETOWAH
STATE OF ALABAMA

The City Council of the City of Southside convened in a regular meeting in Council Chambers at City Hall on Tuesday, June 24, 2025. Prior notice of this meeting was given in compliance with Resolution No. 0-035-2005 of the City of Southside, Alabama, and the Alabama Open Meetings Act. Mayor Dana Snyder called the meeting to order at 5:00 p.m., with Councilman Danny Garnett leading in prayer.

The following were present: Mayor Dana Snyder, Council Members: Keith Clay, John Hatley, Don Steward, Joseph Hutchins, and Danny Garnett. With a quorum present, the meeting was called to order for business transactions.

Mayor Snyder asked the council if there were any corrections or additions to the minutes for the regular council meeting held on June 10, 2025. Don Steward motioned to approve the minutes, and Danny Garnett seconded the motion. The Roll Call Vote was ALL AYES. The motion was approved.

The first Agenda Item was the Public Hearing regarding the Economic Development Agreement for the property at 2370 Highway 77 with BASCO LLC and Johnson’s Giant Foods. The mayor opened the hearing at 5:05 p.m. and asked the public to hold its questions and comments until after the hearing. She stated that the Public Hearing was noticed and posted on June 17, 2025, as required by law, and the hearing regards an economic development tax incentive and lease-purchase agreement for Johnson’s Giant Foods, Inc., and BASCO, LLC, which complies with Amendment 772 of the Constitution. Mayor Snyder stated that BASCO and Johnson’s have proposed to locate a Johnson’s Giant Foods in the City of Southside at the property located at 2370 Highway 77. The City determines that the expenditure of public funds for this development will serve a valid and sufficient public purpose. She stated that the City authorized the purchase of the Burton’s Grocery Store building at the last council meeting, and contingent on the closing of that transaction, the City of Southside wishes to approve an economic development with Johnson’s and BASCO with the following details: The City will lease the property to BASCO in a lease/purchase agreement for $8000.00/month for a term of 96 months, with the option to purchase after 5 years. Johnson’s will locate a full-service grocery store in the City of Southside and make improvements to the property in the amount of 2 million to upwards of 2.5 million dollars. The project is anticipated to produce increased sales tax revenues and will provide an opportunity for new full and part-time jobs with a projected annual aggregate salary of 1.2 million. The city agrees to pay Johnson’s one-half of the sales tax proceeds up to 2.5 million, and this will be paid through a refund of sales taxes paid to the city. After the abatement amount has been met, the city will receive 100% of the sales tax revenue. The mayor then asked if there were any questions from the council. There were none.
She then opened the floor for questions from the audience.

Southside resident, David Smith, was recognized, and asked what the projected annual sales for the store are were The mayor answered 12 million/annually. Mr. Smith then stated taxes should be about $600,000/annually before the abatement split, and the mayor said he was correct. He then stated that occupational taxes on the payroll would be approximately another $24,000. He then asked if, when the term is up for the lease, there is a minimum purchase price included in the agreement. The mayor responded that the total purchase price would be $768,000. Mr. Smith then asked if Johnson’s leased the property for 5 years, was it correct that there is an option to purchase at that point, the mayor responded yes. He then asked if the state continued to decrease the grocery tax rates, would that affect the city’s tax income? The mayor stated that the city’s taxes are not affected by the state grocery tax. Mr. Smith stated that was all of his questions.

Southside Resident: Robert Bjornson was recognized. He asked if the city paid 1.7 million dollars for the property. The mayor responded that the city was under contract for one million, seven hundred fifty thousand dollars. He then asked if, in 96 months, the city was anticipating getting $768,000 for the property, where is the delta made up on that? The mayor responded that it would be another tax incentive for bringing the store to the city. Mr. Bjornson stated that it made a one-million-dollar tax incentive then. Mayor Snyder responded Yes.

Southside Resident, Guy Bryan, was recognized and asked What is BASCO? Mayor Snyder responded that is the company that owns Johnson’s. They are the developer; Johnson’s is the Grocer.

Southside Resident, Anita Hester, was recognized, and asked if the 2.5 million renovation investment would be paid by Johnson’s. The mayor responded YES.

There were no more questions from the audience or the council. The Public Hearing was closed at 5:09 p.m. The mayor stated that the Economic Development Agreement would be on the council agenda for a vote tonight.

The Council entered its work session at 5:10 P.M.

The first item on the agenda is Danny Garnett with a rewrite of the previously discussed Ordinance to establish a specifically restricted interest-bearing emergency fund, that would begin with $300,000 deposited, and $50,000 annually until a minimum balance of $500,000 was met. Councilman Garnett cited lessons learned in 2018, and how it was necessary to scramble to get funds together to sustain emergency operations before there was a state declared a state of emergency, and then there was a length of time before reimbursement. He cited the immediate needs within the first 72 hours of the emergency for debris removal, etc. He stated that the current emergency account had a balance of $36,000. He stated that the Council had copies of the new Ordinance, which had been examined by the city attorney. He stated that he would like to add this to the new business for the first read tonight. Councilman Steward had questions about what triggers the money in this account to be spent. Councilman Garnett stated that the Governor or State Legislature would have to declare a state of emergency, or at the city level, the City Council could declare a state of emergency, or the mayor could declare a state of emergency with the council ratifying it as soon as they were able to meet. He stated that if there was no state-level state of emergency declared, there would be no funds made available to the municipality from other agencies. Councilman Steward stated that his concern with the funds was not enough, compared to prior expenses at the disaster onset. There was more discussion of details and different amounts. Councilman Clay suggested that all interest earned, even after the minimum balance was achieved, be kept in the account to offset inflation. Councilman Steward thinks there should be more in the fund. Councilman Garnett stated that the amounts could be negotiated upward, but the format of the Ordinance should be on the New Business portion of the agenda.

Next was Fire Chief, Wade Buckner, who explained, that when the city got the Library and Community Center on the same phone system as City Hall, Softball Complex, and the Fire Station, Spectrum declared the existing bundle package broken, and the City would have to start paying $130.00/monthly in additional costs to keep internet service. Chief Buckner had 2 different options he had procured for internet in the 2 locations, with the most economical being to just extend the City Hall network and internet to the Library and Community Center, which would only be initial equipment expenses, and then no additional monthly costs. The mayor asked the council if they had any questions. There were none. She then asked if they wished to add this item to the agenda for vote tonight. They all agreed yes.

A sponsorship request for the Coosa Riverkeeper Swim Guide Program was presented. The mayor stated that Richard Rypka from the Organization had been at the previous council meeting and explained that the organization uses these sponsorships to study the water in various locations and publish a “swim guide” for water content safety. The guide lets the public know when it is possibly dangerous to get into the water on Neely Henry Lake and other bodies of water. The council decided to add this item to the Council Meeting Agenda tonight.

A $250.00 sponsorship request for the Southside High School FFA Chapter was next on the agenda. The mayor explained that there are a lot of students interested in the future of farming, and the administration is all in agreement on preserving the remaining farmland in the community. This is a program that the council has sponsored on their convention trips in the past. The council agreed to add this to the agenda.

The work session portion of the meeting ended at 5:25, and the council moved to the new business portion of the meeting.

The first item was a Resolution to approve the Economic Development Agreement, Tax Incentive Agreement, and Lease/Purchase agreement with BASCO, LLC, and Johnson’s Giant Foods, Inc. Keith Clay made a motion to approve the Resolution, and Danny Garnett provided a second. The Roll Call Vote was ALL AYES. The Resolution was approved.

A Resolution was presented to approve the necessary lighting upfit for the 2 newly purchased Police Tahoes at Donohoo Chevrolet off the state contract. Don Steward made a motion to approve; Danny Garnett provided a second. The Roll Call Vote was ALL AYES. The Resolution was approved.

A Resolution was presented to approve the necessary metal portion of the upfit for the 2 newly purchased Police Tahoes at Donohoo Chevrolet. Keith Clay made a motion to approve the Resolution; Don Steward provided a second. The Roll Call Vote Was ALL AYES. The Resolution was approved.

A Resolution was added from the worksession to purchase hardware to provide internet service to the Community Center and Library as an extension of the existing service at City Hall. Joseph Hutchins made a motion to approve the Resolution; Don Steward provided a second. The Roll Call Vote Was ALL AYES. The Resolution was approved.

A $250.00 sponsorship was proposed for the Coosa Riverkeeper Swim Guide Program. Don Steward made a motion to approve the sponsorship. Keith Clay provided a second. The Roll Call Vote Was ALL AYES. The sponsorship was approved

A $250.00 sponsorship was proposed for the Southside High School FFA. Keith Clay made a motion to approve the sponsorship. Joseph Hutchins provided the second. The Roll Call Vote Was ALL AYES. The sponsorship was approved.

A First Read of an Ordinance establishing a minimum balance and, emergency relief fund was presented . Danny Garnett made the motion for this to be the first reading. Keith Clay provided a second. The Roll Call Vote was All Ayes. It was established that since the Council had a physical copy of the Ordinance, the actual reading aloud of the Ordinance was not necessary.

The mayor asked if anyone else from the community had any public comments:

It was asked what the timeline was for the Johnson’s store opening. The mayor stated that it would be contingent on the closing of the property purchase, which is scheduled for July 15, 2025. The estimate from then is 6 months.

It was asked if the Johnson’s Store would have a deli, as several of their existing stores do. The mayor recognized Mack Johnson, who was in attendance, and asked if he would like to say anything. He replied that the store would have a deli. He also said he would like to thank the council and mayor, as well as the citizens, for giving them this opportunity, and they look forward to serving the community.

Southside Resident Robert Bjornson stated that he would like to commend the mayor and council for coming together in their efforts to bring Johnson’s to Southside.

Mayor Snyder made the following announcements:

The next City Council Meeting is scheduled for July 8, 2025, at 5:00 p.m. in Council Chambers at City of Southside City Hall.

The next Planning Commission meeting is scheduled for July 14, 2025, at 6:00 pm in Council Chambers at City of Southside City Hall.

There is a zoning board meeting scheduled for Thursday, June 26, 2025 at 6:00 P.M. in Council Chambers at City of Southside City Hall.

The mayor asked the council individually if they had any comments.

Keith Clay: Excited about Johnson’s

John Hatley: Supports Johnson’s fully!

Joseph Hutchins: Welcome back, Councilman Hatley. Glad you are back. Appreciate Johnson’s wanting to come to Southside, and he is looking forward to it. He stated that the City was represented by 3 girls’ youth softball teams at the state tournament. 6U, 8U, and a 10U teams competed. He again urged the audience to get out and watch youth girls’ softball! He stated that the 6U team from Southside had placed 5th in the state out of 40 teams competing, and Congratulations to the team and coaches.

Danny Garnett: Welcome Johnson’s!

Don Steward: Thank Johnson’s for coming to Southside. Thanks to the council for having the vision to invest in getting them here. Glad Councilman Hatley is feeling Better!

The Mayor stated that everyone is so excited about Johnson’s. She also mentioned the alumni softball game last weekend, and that the oldschoolers won. Council meetings are on the 2nd and 4th Tuesday of the month, and everyone please come back. It is great to see a room full of people in attendance.

Don Steward made a motion to adjourn. Keith Clay provided a second. The meeting adjourned at 5:31 P.M.