Grant funding secures McDonald’s coming to Graceville

 The Jackson County Board of County Commissioners voted 3-2 Tuesday to approve an economic development incentive agreement connected to the construction of a new McDonald's in Graceville, but not before commissioners held a candid discussion about transparency, taxpayer concerns and the role of incentives in attracting new business. The descending votes were Chairman Jamey Westbrook and Commissioner Donnie Branch.

County Administrator Jim Dean explained the agreement formalizes an incentive previously approved by the West Jackson County Development Authority. Under the agreement, the incentive will be paid in two installments, with the first issued after construction permits are obtained and work begins, and the second following completion of the project and issuance of a certificate of occupancy. The Jackson County Economic Development Council will verify the project milestones before funds are released.

The discussion quickly turned to the identity of the developer, which had not been publicly disclosed during earlier deliberations because the project was being handled under Florida's economic development confidentiality provisions.

Commissioner Donnie Branch said he wanted his constituents to understand that when he previously supported moving the project forward, he did not know the incentive would ultimately benefit the developer bringing McDonald's to Graceville.

"I don't understand why McDonald's needs anything from us," Branch said. "They're bigger than we are."

After learning the project's identity, Branch said he struggled to explain the incentive to residents.

"I voted for the developer to do that," Branch said. "But I didn't know who that was going to be. That put a bad taste in my mouth, voting for something when I didn't know who or what it was."

He added that many citizens had asked him about the project.

"I can't explain to the public why we're giving McDonald's money to build a McDonald's," Branch said.

Economic Development Council Chairman Darwin Gilmore clarified that the incentive was not awarded directly to McDonald's Corporation but was requested by the private developer after financial analysis indicated the project would not move forward without assistance.

Gilmore said the request grew out of concerns from Graceville leaders following the closure of Hardee's and the possibility of losing additional restaurants, creating uncertainty for the city's economy.

According to Gilmore, the developer first sought grant funding before requesting assistance from the City of Graceville, which then approached the county. Officials identified economic development funds that had been designated exclusively for the Graceville area and had remained unused for years.

"The money was designated and has been sitting there for many years," Gilmore explained. "It was only designated for economic development initiatives in the Graceville area."

Commissioner Edward Crutchfield acknowledged Branch's concerns but said economic development often requires local governments to offer incentives in order to compete with neighboring communities.

Crutchfield noted that communities frequently offer tax abatements or other financial incentives to attract employers and investment.

"If you're going to help one, which is the better of the two?" Crutchfield asked. "Give them a tax deferment for years, or give them a little money that's already there for a project?"

He added that companies have choices about where to invest.

"They probably have a lot of money," Crutchfield said, "but they also have a decision where they want to come or they don't want to come. You have to try to help a little to get a little."

Dean said the county honored the confidentiality request because it fell within Florida's statutory economic development provisions. He also shared what Graceville officials told him during the recruitment process.

"Graceville is a struggling economy," Dean said, noting the community had lost Hardee's and was seeking another national fast-food restaurant. He said city officials believed attracting a new restaurant required an incentive because the local market alone might not justify a private investment estimated at $3 million to $4 million.

Crutchfield also reminded the board that the funds cannot legally be redirected elsewhere.

"That money can only be used for that purpose," he said, emphasizing that the account is restricted to economic development within the Graceville area.

Later in the discussion, Gilmore estimated the project represents approximately a $3 million capital investment that is expected to create about 25 jobs. He described the county's contribution as a relatively small percentage of the total investment and said he remained supportive of partnering with the City of Graceville to help bring the project to fruition.

Following discussion, the board unanimously approved the economic development incentive agreement, clearing the way for construction to move forward once all required milestones are met.