ELIZABETHTOWN — A resolution to amend the current annexation policy in Elizabethtown fell in a 3-2 vote by the Town Council on Monday night after significant debate.

The board, which met through a virtual meeting, almost found itself with Mayor Sylvia Campbell having to cast the deciding vote, but board member Herman Lewis was able to get on the meeting and ended up being the tie-breaker.

The amendment the council considered would not require voluntary annexation in the industrial park for two categories: industries and manufacturing.

“Howell Clark, at our last meeting, said he would like to exempt our industrial and manufacturing companies due to the fact that he says there’s a lot of expense for moving equipment here,” Campbell said.

“In my opinion this is the most important thing I have voted on in the City Council,” Clark said. “When this original ordinance was adopted in 2012, I wasn’t on the council, but I was involved in the Economic Development Commission.”

Clark stated that he felt the other types should be annexed, including offices and residential, and the policy should be enacted as it written today; however, he felt that back in 2012 he would have still lobbied for the same thing that he is lobbying for now.

“Those two uses, which is a very narrow scope, typically have to make a large investment in machinery to go in their buildings,” he said. “They are putting in manufacturing plants, factory lines, and tool and die equipment.”

Clark’s argument that when these types of companies move into an area for a project they start looking at the tax base first.

“They’re going to be double taxed, and the tax rate is essentially going to be higher,” he said. “I firmly believe, based on a lot of experience, that we will hamstring our ability to recruit those types of projects in the future.”

Clark moved a motion and Rich Glenn seconded it.

“I have prayed about it, I have studied about it and I have called different counties about it,” Glenn said. “I feel for us to grow, with another manufacturing or larger company… for the grants we put in, it typically covers that cost.”

Glenn said that he feels like the “skin in game” is not collecting on the taxes.

“I know that it is tough,” he said. “I know that it is a struggle for our county to attract business.”

Paula Greene had praise for Clark’s letter to the board that was included in the packet.

“I could tell that a lot of passion and thought went into it,” she said. “And I don’t think any of us on the board wish to do anything other than encourage growth, and I don’t want to see that stymied in any way.

“I would hope that in this current budget environment that, because we are having a lot of funding sources that we are losing potentially, I would hope that we would keep this potential source of revenue available.”

Greene acknowledged that because of the “double tax” investors may not look at Elizabethtown from the start.

Ricky Leinwand has also served on the EDC board for many years, and he said that it is time for the town to take it upon themselves to see if they can get more industry to come, and therefore more tax base.

Glenn and Howell voted for amending, and Leinwand and Greene voted against. Lewis said that he did not want to amend it, and the amendment failed.

“This is a hard, hard, and probably the hardest agenda item I have ever come across in my time,” Campbell said.

Emily M. Williams can be reached at 910-247-9133 or ewilliams@bladenjournal.com.