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Only One Company Wants To Lease Century Industrial Building. The Town Told Them No Once Before.
August 14, 2020
Only one company responded to Century’s request for proposals to lease a 40,390 square foot building in the town’s industrial park, and Century has told them no once before. But this time, they are offering more money.
Known as the Helicopter Technology Building — named for the defunct company that was based there — it has been empty since 2008. The town is still footing the bill for utilities, insurance, maintenance and other costs for the vacant property, and they are looking to turn it into a positive cash flow and create jobs along the way.
The town accepted lease proposals for several weeks, with only the one response.
South Alabama Gin Company, doing business as West Florida Gin in Walnut Hill, proposed a lease of $6,000 per month for five years with an option to renew the contract for an additional five years. They want to occupy the building by October 1 and estimated that six employees would be associated with the activity.
West Florida Gin will warehouse processed cotton bales and distribute them from the location.
In 2017, the building was appraised for $550,000 with a fair market rent of $80,000 per year ($6,667 per month). The office and warehouse space has full climate control, sprinkler system, new HVAC and energy efficient lighting.
The town council will consider the proposal at an upcoming meeting.
Last Potential West Florida Gin Lease Was Rejected
A previous lease offer by the gin was rejected by the Century Town Council.
In May 2019, West Florida Gin Manager Robert Earl Godwin and businessman Larry Baxley, who were in the process of setting up North Escambia Warehouse and Storage, LLC, made a preliminary lease-to-own offer on the town-owned building at $4,000 per month for five years, for a total of $240,000. The company offered an $8,000 deposit, pay the first month’s rent in advance, and pay for any upgrades to the building. At the end of the lease term, they would have had the opportunity to buy the building for $100. The building would have been used primarily for cotton storage.
A motion by then council member Ben Boutwell to proceed with negotiations and work on an agreement failed on a 3-2 vote with council members James Smith, Sandra McMurray-Jackson and Luis Gomez voting against. The dissenters expressed objections against the business because it would likely not create any jobs.
“I don’t see the benefit for us,” Smith said at the time. “Where’s the employment?”
Smith and Gomez expressed concerns at the May 2019 meeting that if the council were to lease the building below market value, the town would not have any available industrial space if another company wanted to located in Century with new jobs.
“Someday it could produce jobs, even it’s 10-15 jobs for Century,” Gomez said.
“Let’s talk about y’all’s track record and my track record,” Baxley said after pointing out that no company had seriously considered the building in the past decade but he had developed several similar properties. “For 46 years now, I’ve been making payroll.”
NorthEscambia.com photos, click to enlarge.
Comments
26 Responses to “Only One Company Wants To Lease Century Industrial Building. The Town Told Them No Once Before.”
Maybe, just maybe, one reason there is no long lists of businesses clamoring to do business in Century is word got out about the shakedown of the apartment builders over the hookup fees. You reap what you sow.
Cotton is a giant industry. Allowing them in could make a few jobs available for people especially during actual ginning season. The seasonal jobs last a few months and pay very well. Why not try something new, after all Century isn’t doing that well anyway.
@ David:
The GED is a difficult test to pass and requires several months of intensive study. I know many people who earned their GED’s and moved on to college and successful lives. Having taught GED courses AND in the public school system, I’d go so far as to say most GED students are more attentive to their studies since this is something they don’t have to do, but are doing to better themselves, than the average public school student.
I’m not one to be “offended” by every little thing, but your statement makes fun of people who have made the decision to get their lives back on track by earning their high school diplomas when they didn’t before. Give us a break!
Anyone ever heard the saying ‘bird in the hand….’?
Keep your good eye on both sides if this deal goes through. A.W.Thompson Mosquito Flats,Florida
“The town would not have any available space, if other companies wanted to locate to Century. ” laughable, at best. Which companies are beating a path to Century to locate? The town looks old, dated, poor, and run down.
Take the offer and at least have some sort of cash flow.
David, why do you have to knock the GED?
WELL WELL HERE WE GO AGAIN, MORE STORY AS CENTURY TURNS. WHEN WILL THE T V SHOW START COMING ON?? HOW TO DO NOTING AND GET PAY FOR IT. THIS IS BE BE FUNNY FOR A TOWN TO BE RUN BY SOME PEOPLE WHO HAS NO IDEAL WHAT THEY ARE DOING !!!!!
AND PEOPLE WONDER WHY CENTURY ALWAYS GET FORGOTTEN….LOOK AT IT ITS NOTHING….I SAY RENT IT ITS MAKING NOTHING SITTING THERE
No one ever offered $6667 they offered $4000 a month read the story
“…it has been empty since 2008.”
Wait 12 more years.
What about the law of supply and demand???
Opportunity cost???
Building a positive repore with business???
These are things you learn when you get an education!!!
@DoTheMath…..I don’t agree with you on charging more for the helicopter building but I agree with you about highway 29. It is our bread and butter and more needs to be done.
One additional comment. I just took a trip through Brewton, Evergreen, Letohatchee, Hayneville, Selma, Camden, Beatrice, Monroeville, and back to Brewton. Was also recently in Grove Hill, Coffeyville, and Silas. Monroeville, and to some extent Brewton and Selma (which is sizably larger), are the only prosperous areas (and Beatrice has some cute things going). The rest of it was dead with a capital D.
Century has something that, except for Selma, the other communities do not have… a major four-laned roadway running right through it. And, unlike Selma where US 80 is a pass through substitute for I-85 between Montgomery and Meridian, Century is on the route to a destination… the beaches and Pensacola.
If location, location, location is a good thing, Century, above these other communities, at least has one location in its favor.
And beyond the griping about its government (which is often legitimate griping), maybe its time for the private sector stores with ugly 1960’s parking lots and outdated facades to do a bit of sprucing up themselves. All parties need to get involved.
“The original 2017 offer of $6,667, with inflation, is now worth $7,047, according to an online inflation calculator.”
True…but the building has aged since the valuation in 2017. The mechanical systems have aged with very little if any use (very bad), the roof is now in bad shape, property values in Century are going down, the demand for the building has proven low, the economy has tanked due to COVID-19. All have lowered the value significantly.
The original 2017 offer of $6,667, with inflation, is now worth $7,047, according to an online inflation calculator.
If I were a council member in Century, I’d press for that amount of money today.
Century accepting a lesser amount than three years ago, adjusted for inflation, would be a double bad move.
Everyone makes fun of Century, but in this case, all fairness applied, asking $7,050 is a fair move for all parties involved.
Clearly Companies have been FLOCKING into Century for Business . GREAT CALL COUNCILMEN !
So put the $6000 a month in a separate account for 5 years which will be $360,000. You can build another smaller building which would be more affordable and attractive to a startup. Then we will have 3 buildings in the industrial park instead of two. That is how you grow…. small steps at a time.
NASA could move in that building and still that town would be the same as it has been…a ZERO
When you get GED and less leadership…this is what happens to towns.
An aborted circus
Wonderful comments a bunch of nickel and dime want to be’s voting against anything that makes sense,common sense ain’t so common!
They should take the offer without the extension. If they turn it down again, I am afraid Ron White was correct, “You can’t fix stupid”.
SO>.. You let it set for 12 years and paid all the expenses during that time WHEN you could have a POSITIVE cash flow and tax revenue coming in.???
Yeap sounds like Century alright…
Even 1 dollar a month and they take over the water and power is still a good deal when you have NO ONE ELSE THAT WANTS IT….
I’m not sure very many people in Century want to work at minimum wage…Who would say 6 jobs and money coming in, is better than no money coming in and the city still paying money on an empty building? Who put these “people” in charge?
After years on the market, a company comes in with a fair offer, my suggestion is take it. What kind of suggestion is that? A damn good one from someone who has spent decades leasing buildings.
There is not enough (extra) for them to make private loans or extra pay (under the table), plane tickets, security cameras. ETC
“I don’t see the benefit for us,” Smith said.
And that still holds true three years later, no benefit and just another liability for the town that is upside down financially. Maybe the shortsightedness of the council can be refocused this time around so that this liability can be turned into a positive cash flow.
There really are some ignorant people running this place.