Last week's announcement of the development of an automotive research center in the Upstate vindicates Gov. Mark Sanford's decision to insist that the state get better terms than previously negotiated. The deal could be worth as much as $134 million more to the state under the revised terms.
As such, it should set an example for negotiating economic development agreements, now and in the future. The state shouldn't be willing to give away the store to attract new industry. The revised agreement for the automotive research center demonstrates it doesn't have to.
The center will be developed on behalf of Clemson University, which will conduct research and development there as part of a graduate program in automotive engineering. It is related to an expansion of BMW, which is a partner in the project. The center is expected to attract the research arms of other automotive manufacturers.
Ribbon-cutting was scheduled in January, but the governor put the project on hold until he fully examined the development proposal, which he believed to be flawed. The initial proposal was developed under his predecessor, Gov. Jim Hodges.
As a result of a long second look, the state's expense of developing the center will be sharply reduced. Cash savings are estimated at $23 million, in development expenses and property costs. The governor's office says Clemson will receive added property value of $111 million from the site, following its development.
The university has gained ownership over 250 acres, rather than 100, connected with the research center. And Clemson will exercise more control over the project than originally anticipated. "It's most definitely a better deal for Clemson," university spokesman Cathy Sams tells us.
Gov. Sanford's decision to delay the project cost him political support in the Upstate, and despite the much-improved deal, some criticism continues. Would those critics rather the state had forgone millions in savings and a project that promises to deliver more to Clemson and the state?
The automotive research center should provide important economic benefits to the state. The governor's insistence that the state negotiate the best deal possible should be the standard by which economic development activities are conducted in South Carolina.
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