CHARLESTON, S.C. (WCSC) - Charleston County Council members met on Thursday night to further discuss their involvement in the Union Pier redevelopment plan.
City of Charleston Mayor William Cogswell showcased the Tax Increment Financing District, or TIF, for Union Pier to county council members last month.
A TIF is a public financing tool designed to stimulate private investment in a blighted area.
Using a TIF system would mean public tax dollars or funds would not be used to subsidize private development. It would instead use tax revenue generated by redevelopment projects to create a space that the community can enjoy.
Some of the projects in the mixed-used redevelopment plan would include improving stormwater drainage, adding public spaces such as parks, public access to the water, as well as affordable housing.
Right now, Union Pier does not bring in any tax revenue for the entities, which are the City of Charleston, Charleston County and Charleston County School District.
The city has already voted yes on putting the TIF in place, which leaves Charleston County and Charleston County School District to decide if they want to take part in it as well.
Cogswell said at the previous meeting that this private investment could be worth a projected $2 billion. The presentation read that it would generate an anticipated $47 million in tax revenue annually in 30 years. So, the taxed entities would not start seeing that revenue come in for 30 years which is the end of the financing period.
During a TIF period, which would be the next 30 years, the developers are not paying any taxes. Once developers start generating revenue they will begin to pay money back to the TIF account which would then go back to the three entities. When the 30 years are up, the developers will then start to pay taxes.
At the county's finance meeting on Thursday, District 3 council member, Robert Wehrman, said that the overall plan looks very positive. However, he said that it needs to make financial sense so that they can continue to provide services throughout the 30-year TIF period.
He also said he'd like to see more structure to make sure that it comes out the way they are expecting.
"It needs to be structured in a way that allows us to kind of make sure that it stays on track. I think as it's currently set up there is a lot of flexibility, which can maybe help get things going, but I think there needs to be a few more guardrails in place," Wehrman said. "The concern is you're talking about a very huge development project with obviously a very long timeline and a lot of potential for it to be affected by uncertainty and by things we don't know."
District 7 council member, Brantley Moody, also said that he would like to see something happen to Union Pier, but if they approve to be a part of this then the county would be responsible for providing services to that area and they need to make sure they are covering those costs.
"If we have to provide emergency services, all of our county assessors, Register of Deeds Office, everything we have at Charleston County is going to be needed on this new parcel, then that comes at a cost and so we've got to cover those expenses for the next thirty years," Moody said. "That would be what I would be looking for is a net zero, net neutral to the county."
Wehrman said that the county has to make a decision on if they want to be a part of the TIF by Nov. 4.