Council Action Requested:
Hold a Public Hearing and approve the Third Reading of Ordinance 2023-1842.
During the first reading, County Council expressed concern with clarity in the number of jobs required by the employer to receive economic development incentives. While the company anticipates hiring approximately 167 positions in Lancaster County, the firm agreement number is 125 jobs.. This will be better articulated in the Ordinance for third reading.
There was 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:
Approve the the Economic Development Incentive request for Project Spider.