Opportunity zones aim to attract restaurants, other business

The opportunity zone designations currently include three “gateways” in the county: U.S. 601 off of Exit 145 near Interstate 26 and Exits 98 and 97 in Santee.

The idea of an opportunity zone was conceived by One Orangeburg County, a grassroots organization of community leaders and concerned residents that meet throughout the year to find ways to improve Orangeburg County.

“We are trying to incentivise more commercial activity on these primary gateways,” Orangeburg County Development Commission Executive Director Gregg Robinson said, noting Orangeburg County can often fall short on venues that enhance “livability, lifestyle and things to do.

“Orangeburg County Council was supportive of the investment efforts to try to develop areas that make most sense.”

“The idea is to set us apart,” Robinson said.

The opportunity zone at Exit 145 on U.S. 601 will provide a reduction in property taxes to a commercial venture that invests more than $6 million over a two-year period and creates at least 15 new jobs.

The tax reduction would be a minimum Special Source Revenue Credit of 25 percent. The opportunity zone for the U.S. 601 corridor was a concept created a couple of months ago.

The zone includes the U.S. 601 corridor from about State A&M Road to about Hickson Drive past the U.S. 301 and I-26 interchange.

The zone also includes portions of St. Matthews Road to about the Orangeburg County YMCA, according to an overlay map provided by the OCDC.

In Santee, the incentive includes a commercial venture investment of at least $5 million over a two-year period and at least 15 new jobs created. The Santee opportunity zone was created upon completion of the U.S. 301-Interstate 95 interchange and new exit in May.

The zone includes a circumference around Exits 98 and 97.

Robinson said the opportunity zone incentives will end after a period of time (which has not yet been identified).

“We will try it while the economy is heating back up,” Robinson said, adding that council will be responsible for approving the commercial entity that comes into the zone. “The intent is to turn St. Matthews Road into a boulevard.”

An example of what Orangeburg County envisions is the Dave Lyle Boulevard in Rock Hill. It once was identified as a road.

“A number of areas have provided gateway enhancements and the investment has followed,” Robinson said. “Walterboro has an example, North Charleston, Summerville etc. The ability for us to brand our gateway to colleges and downtown is how we get the commercial to flourish. We have way too much money leaving the community to shop in Summerville and Columbia.”

“If we meet with success, we can expand those zones to other exits,” Robinson said, noting other areas that could be looked at would include U.S. 301 and North Road.

Council this past week gave two ordinances first reading regarding an economic development project operating anonymously under the name Project Profile. The company had expressed interest in the opportunity zone as part of its decisionmaking process.

The company is considering investing either $8 million with the creation of 15 full-time jobs and five part-time jobs or investing at least $10 million and creating 15 full-time jobs and five part-time jobs.  A decision by the company will be made by second reading.

Orangeburg County Council Chairman Johnnie Wright credits the formation of the opportunity zone and the expected bright future of the county to teamwork and a desire on the part of all to improve Orangeburg County and its county seat Orangeburg.

“Some of these ideas and dreams are coming to realization,” Wright said. “I am very optimistic and very grateful for what I feel is coming down the path for the future of the county.

“We are not clones but at the end of the day, we realize we all need each other and to work together rather than heading in different directions.”

Robinson said there are other commercial entities that have expressed interest in the opportunity zone but he would not disclose details of specific businesses.

Robinson said U.S. 601 was chosen as a gateway to focus the incentives due to its connections with the area’s colleges and universities as well as its connection to downtown Russell Street.

Most recently, the interchange of U.S. 601 and Interstate 26 has been upgraded and there are further plans to beautify the area with the placement of mast arms from U.S. 601 to U.S. 301. The project will be done as funding becomes available.

Currently, one mast arm has been put in place near the I-26 and U.S. 601 interchange. The arm was funded by the Lower Savannah Council of Governments, the South Carolina Department of Transportation through federal funds and a county match.

Design proposals are already on the table for beautification projects at the interchange, including underground wiring, fencing and a gateway monument.

About $3.5 million has been set aside for the improvements in the next round of Orangeburg County’s capital projects sales tax.

Congressman James Clyburn has also been able to allocate about $6.5 million toward the revitalization of Russell Street and Magnolia Street also known as “Railroad Corner.”

“We want to marry everything up,” Robinson said about the opportunity zone and the proposed Railroad Corner revitalization.

Robinson also noted now that Orangeburg County voters have approved Sunday alcohol sales, commercial developers will find the area more attractive as well.

“This is an opportunity to leverage all that has happened in the last year and to send the message to the Outbacks of the world that Orangeburg County is probusiness,” he said.

If successful, Robinson said he would hope the City of Orangeburg would also consider a similar incentive structure to help revitalize the downtown district.

The zone also includes an area north of I-26 on U.S. 601 heading toward St. Matthews. Currently, the area on the other side of I-26 does not have necessary water and sewer infrastructure to support commercial growth.

Providing incentives for companies and businesses to locate to the county is nothing new.

The county has provided a number of incentives including the traditional fee-in-lieu of taxes as well as the multicounty industrial park credits for industrial recruitment.

Robinson said opportunity zones are the commercial equivalent of industrial incentives.

All credits are performance-based.