Council Action Requested:
Approve the First Reading of Ordinance 2023-1842 on March 27, 2023, followed by second reading on April 11, 2023. The client is requesting that the Public Hearing and 3rd Reading then be held for 1 month, and then hold the public hearing and third reading on May 22ne, at which time the company's name would be revealed.
There is also a Companion Inducement Resolution 1231-R2023 to this Ordinance.
Points to Consider:
Project Spider originates from the underlying company's desire to consolidate its two corporate office locations from North Carolina to Lancaster, South Carolina. Project Spider is a privately owned concern and has been in operation since the 1970's in the Southeastern United States. It operates in the transportation industry.
The Company intends to purchase an office building in the Indian Land area for $6,000,000 and then upgrade over a five-year investment period by investing another $900,000.00.
Funding and Liability Factors:
The State of South Carolina is providing a large incentives package for this project, around $9 million in total incentives over a 10 year period, to include Job Development Credits, Job Tax Credits, and a one-time headquarters tax credit.
The project will be in a multi-county park. Normal ad valorum property taxes will apply, but we are also offering a 30% Special Source Revenue Credit Agreement (SSRC) for the first ten years. The millage rate will vary, and is not fixed.
Recommendation:
To proceed with three readings and conclude with approval of this Economic Development Incentive request.