Planning starts in Lakelands for penny sales tax
Two Lakelands counties are just beginning the financial planning process, and a third is preparing to try again.
In November, voters in Greenwood and McCormick counties approved a special levy adding 1 percent to the local sales tax, creating a dedicated revenue stream that will raise a combined $88.5 million to pay for a range of capital improvement projects.
Meanwhile, officials in Abbeville – stung by voter rejection of their proposed $9.8 million sales tax initiative – are evaluating how to put the question back in front of voters.
The tax will take effect May 1 and applies to all goods except unprepared food items that can be purchased through federal coupons.
In Greenwood, money from the tax – projected to generate $85 million during the next 8 years – will fund 27 projects, from a new manufacturing training facility at Piedmont Technical College to upgrades at Katherine Hall in Ware Shoals.
Unlike McCormick County, which wrote language into its referendum question allowing the use of bonds to pay for the work, Greenwood County did not. And it’s also unlikely that the order in which the projects appeared on the ballot will be moved.
“Our goal is to keep it the way they’re listed unless there’s some catastrophic reason we should move a project around,” Greenwood County Manager Toby Chappell said.
McCormick County Administrator Columbus Stephens said two public safety items – an emergency radio system and emergency operation center – are top priorities. Together, the projects will cost about $2 million.
Stephens said County Council will decide whether to issue bonds based on projected tax revenues three months after collection starts.
Greenwood County identified as its top priority the Upstate Center for Manufacturing Excellence at Piedmont Tech, a $13.5 million venture paid for using $6 million from local sales tax dollars, $6 million in state aid and $2 million in privately raised capital.
The 47,000-square-foot building was described by Piedmont Tech President Ray Brooks in August as a cornerstone for Greenwood County’s economic future.
“If we don’t have a vibrant economy that can manufacture things, add value and then sell them someplace else, we can’t maintain a standard of living,” Brooks said at a Greenwood Area Chamber of Commerce-sponsored breakfast. “What this project will bring to bear is the ability to train a workforce for practically anything imagined.”
The center’s construction was also a linchpin for the county being able to secure a $600 million investment by Teijin Holdings, which is developing 454 acres off Highway 246.
Greenwood County Council chairman Steve Brown said he’s not in favor of shuffling projects around.
“That was a priority listing on the referendum (ballot),” he said.
Keeping the list intact would mean resisting lobbying efforts by economic development officials such as Heather Simmons Jones, CEO of the Greenwood Partnership Alliance, and County Councilman Theo Lane, who served as chairman of the penny sales tax economic development committee.
Both say a 100,000-square-foot speculative building and site preparation on 3.17 acres of land purchased by the county in March 2015 using $8.4 million from the penny sales tax is critical.
Currently, the project is ranked 10th, pushing its construction back to 2019 or beyond.
“Obviously, we would love to see the construction of the spec building and development of the park commencing sooner rather than later. In terms of how this might be accomplished will largely be dependent on the county,” Jones said. “ I believe that the Partnership Alliance board (of directors) would encourage officials to consider such options as issuance of bonds or partnering with a private developer to complete these vital assets sooner than later. However, no formal action has been taken at this time.”
Lane said he believes readying the site now instead of waiting two years could jump start new investment in the county.
“I think you have to be very, very careful and selective if you start to do that (shuffle projects), because there are people who are just as passionate about parks and recreation and other areas, and those people might say, ‘Why would you do it for this and not that,’” Lane said. “But I would be someone who might be in favor (for moving the industrial park) simply because I think the dividends it pays back can come back to you relatively quickly.”
And while Greenwood and McCormick county leaders consider how to move forward with their projects, Abbeville County leaders are back at the beginning.
“We’re going to be talking with full council in January and seeing what direction we want to go,” Abbeville County Director David Porter said. He said the first quarter of the year will be spent planning.
Revenue from the tax — which was voted down 5,509 to 4,783 — would have funded 21 projects throughout the county, including an expansion of fire services, the installation of waterlines, a county animal shelter and a new civic center in the City of Abbeville.
Contact staff writer Adam Benson at 864-943-5650 or on Twitter @ABensonIJ.
Originally Published by Index-Journal on:Jan 8, 2017
By CONOR HUGHES and ADAM BENSON chughes@indexjournal.com abenson@indexjournal.com