This chapter shall be titled the "Economic Development Incentive
Program."
The Economic Development Incentive Program is enacted pursuant
to the powers conferred upon the municipality.
The purpose of the Economic Development Incentive Program is
to allow public support of economic projects to foster, promote and
enhance local economic development efforts. The purpose of this chapter
is to allow the City of Walhalla to enter into an agreement with a
person, firm or corporation who/that undertakes a development project
consistent with the City's adopted Comprehensive, Master Plans and/or
redevelopment plans and the provisions herein.
As used in this chapter, the following terms shall have the
meanings indicated:
BENEFITS
The value to the City of providing the incentives, which
generally include:
A.
Increased property values within the City as a whole;
B.
Increased revenues from property taxes, business license fees
and permit fees;
C.
Increased tourism and commercial activity within the City;
D.
The creation of new jobs within the City; and
E.
The improvement of the character of the City by preserving buildings
as appropriate within the City; and promoting the construction of
new buildings that are compatible with the City's character.
CAPITAL INVESTMENT
An activity that adds value to the City's tax base by the
acquisition and/or improvement of real property.
CUMULATIVE CAPITAL INVESTMENT
Meeting the capital investment in the development of multiple
real properties during a maximum period of five years.
DEVELOPMENT
The activity of improving a real property to the extent of
adding value to the tax base through real property improvements, and
the creation and/or retention of employment opportunities.
INCENTIVE
A grant of any inducement having monetary value by the City
of Walhalla that is offered to a person, firm or corporation to pursue
a development that encourages private investment and/or the creation/retention
of jobs. The incentive may also include grants from other entities
that the City may be able to obtain.
INCREMENTAL INCREASE
The difference in the real property value at the beginning
of the incentive period and the real property value upon completion
of the first taxable year of occupancy of the new development.
INFRASTRUCTURE
Improvements to undeveloped land consisting of sanitary sewers,
streets and storm sewers located in a public right-of-way which by
nature provide service to the general public. Similar nonpublic improvements
which are oriented to a specific structure or structures, such as
a sidewalk from the street to a specific structure or structures,
a sewer line serving a specific structure or structures, a driveway
serving a specific structure or structures, etc., are not classified
as infrastructure for purposes of this chapter.
JOB
Each new full-time position or each full-time-equivalent
position that is created as a direct result of ongoing operation of
a development. For the purposes of calculating the number of jobs
created by a development, only those employed at business directly
associated with the development at positions permanently located within
the City shall be considered.
REAL PROPERTY VALUE
Real property value is defined according to the value assigned
by the Oconee County Tax Assessor's Office.
Except for those incentives discussed in §
25-7I below as authorized by the state and which are intended by the terms of this Economic Development Incentive Program to be applied City-wide, in order for a development to be eligible to receive incentives, the Council must determine that the development meets, or upon completion will meet, each of the following criteria:
A. The development must be consistent with the City of Walhalla Comprehensive
Plan and the City of Walhalla Master Plan, as adopted.
B. The development must be located within the City limits of Walhalla
or establish a location for business within the City even if it has
previously conducted the same or similar operations at locations outside
the City.
C. The development must have a minimum threshold investment which may
be comprised of a combination of physical improvements and acquisition
costs; such threshold investment may be comprised of a single real
property investment or a cumulative investment.
D. The development must be for one or more of the following:
(1) Retail uses as identified in the most current Retail Market Power
Database provided by Claritas.
(2) Tourism-related business or activity.
(3) Cultural arts activities and associated businesses.
(4) District offices or corporate headquarters.
(5) Research and development.
(6) High technology growth business.
(7) Residential projects including three or more single-family units,
multifamily units or condominiums.
(8) Other uses as may be determined the City of Walhalla which meet the
intent of this chapter and as are identified more specifically according
to the adopted master plans and/or redevelopment plans.
E. The City reserves the right to exclude from consideration proposed
projects that it deems incompatible with the City's Comprehensive
Plan, Downtown Master Plan or with the City's overall goal of encouraging
development that will strengthen property values and enhance appearance
and quality of life within the community. Such proposed projects include
but are not limited to the following:
(7) Other retail and/or service uses determined by the City not to advance
the goal of establishing quality investment in the City of Walhalla.
F. No business and no successor or affiliated business entity having
one or more of the same principals and substantially the same business
activity may cease business operations in the name of one business
and then resume business operations in another name if the effect
of such resumption is to circumvent this section or to prolong the
incentives provided beyond the incentive agreement.
The Council may, at its discretion and on a case-by-case basis,
enter into an incentive agreement to reimburse or refund any person,
firm or corporation proposing to invest in development or redevelopment
of property within the City of Walhalla the following fees and taxes
up to the amounts and percentages provided for herein:
A. Up to 100% of the applicable tap fees collected by the City.
B. The following business license tax incentives:
(1) Year 1: A grant in the amount of 100% of the business license tax
due to the City will be reimbursed after the business license taxes
are paid to the City of Walhalla.
(2) Year 2: A grant in the amount of 75% of the proposed business license
tax rate based on gross income after the taxes are paid to the City
will be reimbursed to the applicant.
(3) Year 3: A grant in the amount of 50% of the business license tax
rate based on gross income after the taxes are paid to the City will
be reimbursed to the applicant.
(4) Year 4: A grant in the amount of 25% of the business license tax
rate based on gross income after taxes are paid to the City will be
reimbursed to the applicant.
(5) After Year 4, business license taxes will be the responsibility of
the property owner/business owner and will be the proposed rate based
on gross income.
C. Up to 50% of the local hospitality taxes collected by the City for
as many as five years, but funds received through such incentive are
to be spent only for purposes that are related to tourism, pursuant
to S.C. Code Ann. § 6-1-730, and which have been approved
by Council and included in the incentive agreement.
D. Up to 50% of local accommodations taxes collected by the City for
as many as five years, but funds received through such incentive are
to be spent only for purposes related to tourism, pursuant to S. C.
Code Ann. § 6-1-530, and which have been approved by Council
and included in the incentive agreement.
E. Up to 100% of solid waste fees for as many as five years.
F. Up to 100% of infrastructure costs for commercial development projects
for as many as five years.
G. Up to 100% of infrastructure costs for residential development projects
for as many as five years.
H. Such other incentives that the Council, at its discretion on a case-by-case
basis, determines are appropriate given the amount or type of investment
made by the incentive recipient.
I. State incentive programs. The state programs that may be considered
by Council to be included within any package of incentives or as a
standalone set of incentives for in-City projects:
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(1) Property tax credits authorized by the provisions of the South Carolina
Abandoned Buildings Revitalization Act, codified at S.C. Code Ann.
§ 12-67-100 et seq. (collectively, the "Abandoned Building
Act"). Incentive recipients requesting consideration for the Abandoned
Building Act by Council shall submit an Abandoned Building Act application
form.
(2) The South Carolina real property tax credit for the installation
of a fire sprinkler system, codified as S. C. Code Ann. § 12-6-3622.
(3) Property tax credits authorized by the provisions of the South Carolina
Textiles Communities Revitalization Act, codified at S.C. Code Ann.
§ 12-65-40.