Council Action Requested:
Approve the First Reading of Ordinance 2023-1866 on September 11, 2023, followed by the second reading on September 25, 2023 and the public hearing and third reading on October 9, 2023 at which time the company's name would be revealed.
There is also a Companion Inducement Resolution 1244-R2023 to this Ordinance.
Points to Consider:
Project E3 is a small business development opportunity for Lancaster County, SC. At this headquarters location, the Company will have distribution, final assembly, limited repair operations and a showroom facility. The Company intends to build on a 16.6 acre parcel with a minimum investment of $14,335,000 over a 5 year investment period with at least $5,000,000 of this sum invested before the end of calendar year 2027.
Funding and Liability Factors:
Over a 30-year period, the County investment (total tax savings for Project E3) amounts to an estimated $1,458,568, plus cost of land at $450,000.
After 10 years the SSRC ends, and the 12% effective tax abatement ends. After 20 years from the last investment by Project E3, there are no further property tax incentives that apply, and the parcel will revert from the fixed millage to normal ad valorem rates applicable at that time.
The total net new property tax paid over 30 years by the Company will be $3,752,342.
The State of South Carolina is providing an incentives package for this project, approximately $1.06 million in total incentives over a 10 year period, to include Job Development Credits and Job Tax Credits.
The project will be in a multi-county park and we are offering a 12% Special Source Revenue Credit Agreement (SSRC) for the first ten years. The millage rate will be fixed.
Recommendation:
We respectfully request Lancaster County Council to proceed with three readings and conclude with approval of this Economic Development Incentive request.