Companies planning investments at $9.3M

Both companies are currently remaining anonymous under code names. The official names will be released upon third and final reading.

Project Omega promises an investment of $7 million and 28 new jobs. The company is planning to locate in Rowesville.

Orangeburg County Development Commission Executive Director Gregg Robinson said the project is agriculturally based. He declined any further comment on the company until final approval.

Project Prince, which will locate in the Orangeburg city limits, promises an investment of $2.3 million and 10 new jobs.

Robinson said the company is in the business services sector.

“It is an opportunity for new development,” Robinson said. “Every one of these (projects) has performance factors in order to get the fee-in-lieu. They have to commit to the capital in order to get the credit.”

The fee-in-lieu of taxes incentive allows industries to pay a fee based on a lower tax assessment than the standard 10.5 percent.

In other matters, Husqvarna, the county’s largest manufacturer, received final approval of a fee-in-lieu of taxes incentive for the company’s $69 million investment at its Old Elloree Road plant.

The fee-in-lieu taxes incentive was listed under the code name Project Leopard.

The company plans to invest $29 million in buildings and $40 million in other expenses, including equipment. The expansion will secure the previous promise of 25 new jobs first announced in May.

“This is a present fee-in-lieu that was put in place in 2013,” County Attorney Jerrod Anderson told council Monday.

The current fee-in-lieu has a 40 percent special source revenue credit incentive for 20 years on qualified expenditures.

Anderson said Husqvarna is asking for the incentive to increase to 50 percent for 30 years with the additional investment.

A SSRC reduces property taxes, but only for the purpose of reimbursing the business for certain investment/project costs.

“It is one of the most expensive buildings in our county,” Robinson said. “It is also the largest new construction of manufacturing and distribution in the entire Midlands.”

“It is about opening up floor space, bringing in new equipment and being more efficient,” Robinson concluded.

As part of the investment, the company has built a 513,000-square-foot distribution and warehouse facility.

Husqvarna’s plant now has six production lines for the manufacture of riding lawnmowers, zero-turn lawnmowers, tillers and similar products.

Its Orangeburg operations will exceed 1.9 million square feet once the new facility is complete. The addition will include automation to transfer the finished products from the plant’s assembly lines to the new distribution center.

The company will have an open house of its new building in the middle of January, Robinson said.

Also in the meeting, council approved incentives for four solar farm prospects.

Third readings of incentives for two solar farms, Peony Solar LLC and Magnolia Solar LLC, were approved.

Peony Solar LLC is promising a $42.9 million investment. No new jobs are involved in the investment.

Anderson said it is locating off of Highway 33 in Springfield.

The company will pay taxes annually in the amount of $67,000 over a 30-year term.

“Is this absolutely going to happen or this is something they hope to be able to put together?” Councilman Clyde Livingston said.

“This is, from what I understand, it’s a hope to put it together,” Anderson said.

Magnolia Solar LLC promises another $46.2 million. No new jobs are involved in the investment.

The facility will be located at 283 Juniper Street in Neeses.

Council also approved second reading for incentives for a company currently operating as Project Springfield.

The company promises a minimum investment of $10 million.

It will be located off of Highway 39. Anderson said a more exact location will be given during third reading.

Another $87.5 million is being promised by a fourth solar power company.

Council approved first reading of an incentive for a company operating as Project Palmetto Plains.

Council was presented with an inducement resolution and ordinance to approve a fee agreement for the company.

Anderson said it plans to locate along Weathers Farms’ property outside of Bowman.

In other business:

• Council approved a $5.6 million project with the Piedmont Company for development of the Department of Social Services Building.

“I’d like to state my support for the DSS building, although I have severe reservations,” Councilman Clyde Livingston said.

Livingston said he disagreed with the process that was used to get only one proposal.

“I think if things had been more competitive, then possibly we could’ve gotten a better price,” he said.

“I thought we had done our due diligence on this project,” Councilman Willie B. Owens said. “I believe if we could get it any cheaper, we would have.”

Councilwoman Janie Cooper-Smith agreed, adding, “We don’t need to wait to look for another location.”

Council had previously expressed concerns about the proposed cost of the project, which was in the $7 million to $8 million range. Council asked county administration to see if there were ways to reduce the cost.

The proposed DSS building will be located on St. Matthews Road near The Technology Center. The building will be about 29,000 square feet.

The S.C. Department of Health and Human Services issued a report in 2014 citing a number of problems at the current facility.

The report said the building has interior and exterior problems including malfunctioning heating, ventilation and air conditioning units.

• Council approved third reading of an ordinance changing a fee-in-lieu of taxes incentive for SI Group’s Cannon Bridge Road plant. SI Group purchased the facility from Albemarle Corp.

“They have a different business model than the original Albemarle and with that they have a more aggressive depreciation schedule,” Anderson said. “They’re asking that the present fee-in-lieu be amended so that the minimum capital investment is moved from $65 million to $55.”

He added that SI Group also found it made $26.3 million in investments that qualify under the present fee-in-lieu.

• Council approved second reading of a rezoning of five acres of property owned by Elizabeth Felder at the intersection of Binnicker Bridge Road and Bamberg Road from rural community to commercial general.

The owner plans to have a boat dealership and sporting goods store on the property.

The parcel of land is located next to Wayne’s Auto.

• Council approved $325,843.75 for several 911 upgrades.

• Council approved the low bid of $133,958 from National Power in Raleigh, N.C. for generators and transfer switches.

• A $672,750 contract was approved with Alabama-based Quality Correctional Healthcare for inmate healthcare.

The current healthcare company plans to leave on Dec. 27.

• Council approved Strickland Electronic Recycling of Orangeburg to handle the collection and disposal of E-waste at 24 cents per pound.