NEWBERRY — Newberry County Council has passed a third reading and two second readings for fee agreements with local Newberry County industries.
The third reading was for an ordinance authorizing the extension of the term of two fee in lieu of tax agreements and an extension and amendment of one lease agreement between Newberry County and Kiswire.
This fee agreement will consolidate and extend existing fee agreements for all Kiswire facilities in the county. The agreement will provide a combination of variable amount credits (years 3-5) and fixed percentage (40%) credits years six through 20 against the future fee stream relating to the new steel cord facility.
The variable credits would limit fee payments for this property to one million dollars for years 2018-2020. The subsequent four years’ annual fee payments would average an estimated $840,000, after which annual payments would level off at around $720,000 for the remainder of the fee term, ending 2036.
This also enhances an existing deal and was recommended because the company has exceeded its original investment estimates for the steel cord plant. Originally estimated at a project totaling less than $20 million, the investment to date exceeds $80 million. The company expects to add as many as 50 new jobs at the new facility.
The third reading was approved after Councilman Scott Cain made a motion and Councilman Steve Stockman seconded.
Council approved a second reading, and held a public hearing, for a fee agreement with Trucast, LLC. According to County Administrator Wayne Adams, Trucast requested a fee agreement on a three million dollar investment that will involve the creation of 10 jobs.
“There is no special source revenue credit involved. This is a straight fee deal: 20-year term, locked millage, 382 mills, six percent assessment ratio,” he said.
Council approved the second reading after Councilman Travis Reeder made a motion and Cain seconded.
The final fee agreement involved Pioneer Frozen Food. This ordinance provides for a six percent assessment ratio, locked millage, 382 mills, and a 20 year term for a new six million dollar investment.
“This ordinance also provides a 25% credit against a fee stream from an old/existing fee deal until 2032. In the case of the existing fee, the company has continued reporting new investments as qualifying for incentives, even through the investment window for the fee closed in 2012,” Adams said. “As a result, the 25% credit is not against a traditional six percent fee in lieu of tax, it is a 25% credit against a fee stream resulting from a 10.5% assessment ratio.”
The second reading was approved after Councilwoman Harriett Rucker made a motion and Cain seconded.
“I just want to say Rick (director of Economic Development) he works hard on new economic development, but he also enhances and tries to stimulate the local ones that are already here. It takes a lot to keep everybody happy, everybody moving forward. Trucast, Pioneer and Kiswire are companies that have been in our county for quite some time now. It is great for them to feel that the economic environment within our county, state and nation, is something they can continue to grow and expand our tax base,” said Councilman Henry Livingston.
• Council approved a first reading of an ordinance authorizing the execution of an equipment lease purchase agreement in an amount not exceeding $500,000. This continues the county’s annual program of purchasing emergency services rolling stock equipment, this year’s purchases are one pickup truck, a pumper tanker truck and an ambulance re-mount.
• Council recognized the following employees for their years of service, Teresa Ball, Public Works – 10 years, Amberlyn Silvers, Sheriff’s Office – 15 years.
Reach Andrew Wigger at 803-276-0625 ext. 1867 or on Twitter @ TheNBOnews.