UNION COUNTY — Two industrial projects involving a total of $7.5 million worth of investment in Union County are a step closer to receiving tax incentives from the county.
On Tuesday, Union County Council voted unanimously to approve second reading of an ordinance including the expansion of the local Standard Textile facility in a multi-county industrial park agreement with Spartanburg County. The park, which will be located in Union County, would make Standard Textile eligible for job tax credits available to companies and industries that locate in a multi-county industrial park.
The inclusion of the expansion in the multi-county industrial park also makes Standard Textile eligible for a fee-in-lieu of taxes agreement with the county which would enable the company to pay a lower property tax rate on its expansion. Under the agreement, Union County, as the location of the industrial park, will get 99 percent of the revenue generated by the expansion while Spartanburg County will receive one percent.
Inclusion in the park also makes Standard Textile eligible for infrastructure credits which would help cover the cost of any infrastructure improvements that would serve the county.
Standard Textile announced in July that it was planning to invest $2.5 million in the expansion of its manufacturing facility at 100 Highpoint Drive. The goal of the project, which was expected to be completed this year, was the expansion, consolidation and incorporation of new innovations in terry towel finishing in Standard Textile’s U.S. terry towel manufacturing operations. The company manufactures textiles for customers in the health care, hospitality, decorative products and industrial laundry markets.
The expansion is expected to create 15 new jobs.
When council voted in January to approve first reading of the ordinance, Union County Development Board Executive Director Andrena Powell-Baker said that because it is creating new jobs in South Carolina, Standard Textile is eligible for a tax credit against their annual corporate income tax liability. Powell-Baker said that the value of the tax credit is based on the tier the county is designated and the number of jobs created. She said that since Union County is a Tier IV County the value of the tax credit is $8,000 per job.
Powell-Baker added that by the expansion being designated as part of a multi-county industrial park Standard Textile will be able to take advantage of an addition $1,000 tax credit per new job created.
The ordinance authorizing the multi-county industrial park agreement states it would take effect the first day the property comprising the project is purchase or acquired. It would end five years after the last day of the company’s tax year during which the initial phase of the project is placed in service. The ordinance states that this period was expected to begin in 2013.
Since the early 1990s Union County has partnered with Spartanburg County for a number of multi-county industrial parks beginning with the first agreement which helped bring BMW to Greer.
Council also voted unanimously Tuesday to approve first reading of an ordinance authorizing a fee-in-lieu of taxes agreement between the county and an industrial project known only by the code name “Project Midas.”
The project was first announced in January when council approved an inducement resolution stating the company called Project Midas is considering the construction and installation of a landfill gas project in Union County. The agreement further stated that the company will invest at least $5 million in new equipment at and improvements to the site where the facility will be built.
The resolution also stated that the project was dependant on the county entering into a fee-in-lieu of taxes agreement requested by the company.
The county took a step toward that Tuesday with council’s approval of first reading of the fee-in-lieu of taxes ordinance.
Once in effect, the fee-in-lieu of taxes agreement will enable the company to pay a lower tax rate on the project for the duration of the agreement.
Charles Warner can be reached at 864-427-1234, Ext. 14.