NEWBERRY — Newberry County Council passed third reading for a fee-in-lieu of tax agreement with KRA Operations, LLC, and KRA Real Estate, LLC, previously known as Project Sam.
According to County Administrator Wayne Adams, KRA Operations is a top-tier Samsung supplier — the first to locate in South Carolina.
“The Project is committing to the creation of at least 57 jobs and the investment of at least $11.5 million. In turn, the County would agree to a 30-year fee-in-lieu-of-taxes (FILOT) schedule, a six percent assessment ratio, a locked taxation rate of 0.382 (382 mills), and certain Special Source Revenue Credits (SSRCs). These SSRCs would reduce scheduled fee payments by 100 percent in the first year, by two-thirds (66 percent) in year two, and by 40 percent for the remainder of the agreement term; except that, if investment reaches $12.5 million, the reduction for each year in the remainder of the term would be 50 percent,” said Adams. “Additionally, the County is providing approximately 15.65 acres of property (two parcels) and a site grant of $450,000 (budgeted in the current fiscal year.) Total site development costs are approximately $1.5 million. Construction investment is currently estimated at $10 million.”
Adams added that KRA Operations will be making stamp metal parts and plastic injection molding parts — in support of the washing machine factory (Samsung).
“This could also support other products made by Samsung in the future. If you have the supplier network, you might be able to get Samsung to expand in the future — but there is no guarantee of that,” Adams said.
The third reading was approved after Councilman Steve Stockman made a motion and Councilman Travis Reeder seconded.
A public hearing was also held during the Wednesday meeting, and Newberry County resident Kenneth Brooks spoke — he asked Council to make sure the tax payers “don’t get the shaft” later down the road.
Also in regards to this project, Council passed a first reading for an ordinance that will transfer 15.65 acres (two parcels) to KRA. Adams said that the S.C. Code of Laws allows counties to sell or otherwise dispose of real and personal property.
This first reading was approved after Reeder made a motion, Councilman Johnny Mack Scurry seconded.
In other business, Council approved first reading of an ordinance to terminate the agreement governing Lexington-Newberry Industrial Park dated July 28, 1998, between Lexington County, South Carolina and Newberry County, South Carolina.
The County’s existing multi-county park agreement with Lexington County calls for a termination date of July 29, 2019, but requires an ordinance to complete the termination process, according to Adams.
“In recent years, Newberry County has placed all new multi-county park projects into its agreement with Greenwood County. The revenue sharing with Lexington County is one percent of the proceeds; with Greenwood County, it is one-tenth of one percent. Any industries covered under the Lexington County agreement will automatically transfer to the Greenwood County multi-county agreement,” he said.
A multi-county park is a way the state uses to create partnerships between counties — according to Rick Farmer, director of economic development, this agreement allows for a slightly higher level of incentives for projects, and some revenue sharing. This is not a physically industrial park.
The first reading was approved after Councilman Kirksey Koon made a motion and Stockman seconded.
Other Business:
• Council approved giving $1,500 to the Community Christmas Tree, after Samantha Baird Snyder made a request. The request was approved by a 5-1 vote, with Koon voting against.
• Council approved a second reading of an ordinance authorizing the execution of an Equipment Lease-Purchase Agreement in an amount not exceeding $965,000. The items budgeted for purchase by this method in the current fiscal year are as follows: one pumper-tanker fire truck ($325,000), one backhoe ($98,604), three pick-up trucks ($98,853), two ambulances ($350,000), and two heart monitors ($90,000). The total cost of these purchases is $962,457. This same ordinance also includes indebtedness on the County’s public works facility, which also takes the form of installment purchase debt (serial one-year notes).
• Council approved second reading for a fee-in-lieu of tax agreement with Valmont Industries. Valmont Industries is an existing company in Newberry County that is pledging new investment of $13.75 million and the creation of 50 additional jobs. For incentive purposes, the County would offer a 20-year fee-in-lieu-of-taxes (FILOT) schedule, a six percent assessment ratio, a locked taxation rate of 0.382 (382 mills), and certain Special Source Revenue Credits (SSRCs). These SSRCs would reduce scheduled fee payments by 40 percent for each of the first 10 years.
• Council approved a second reading to change a parcel, located on Highway 176 just outside the Pomaria Town Limits, next to the Pomaria Post Office, from Rural (R2) to General Commercial (GC). The stated purpose of the rezoning is to locate a Dollar General (retail commercial use) on this property.