House Republicans, environmentalists and the S.C. Chamber of
Commerce are pushing a bill that would give developers tax credits
for reusing or demolishing empty “big box” retail stores or strip
malls.
The bill is an extension of a law passed last year that provided
tax credits for those who redevelop empty textile mills.
The bill would provide a tax credit equal to 25 percent of the
cost of renovating the structure or building a new one.
The credit would be spread over five years. It would apply to
buildings of more than 100,000 square feet, which often are home to
such mega-retailers as Kmart or Wal-Mart.
These retailers sometimes abandon their locations to build
supersized stores nearby, sometimes even across the street, as with
the Lowe’s store on U.S. 1 in West Columbia, said State Rep. Scott
Talley, R-Spartanburg, the bill’s primary sponsor.
“We are seeing in communities across this state empty stores that
were once vibrant,” Talley said. “They become eyesores. There is no
incentive for anyone to come in and take over that space. And they
are (privately) owned, so it’s hard for a city or county to have
them torn down.”
The tax credit would begin when the local government — city or
county — signs off on the development and issues a certificate of
occupancy.
“The tax credit would take effect when the building is back in
use,” Talley said.
The local government could also choose to accept buildings of
75,000 square feet, Talley said.
Columbia City Councilman Hamilton Osborne said the bill is a good
idea. Osborne represents the Garners Ferry Road area, where some
empty “big box” stores are located,
“Clearly, I’m pleased that the legislature has sought to address
the matter,” he said. “It’s a problem, and this might help.”
The tax credit would also be extended to those who redevelop
abandoned strip malls, if the total square footage of the stores to
be reused or demolished and redeveloped totals 100,000.
That appealed to the chamber.
“They are eyesores,” said chamber lobbyist Mark Sweatman. “They
don’t create any jobs. Something has got to be done” to revitalize
them.
Environmental groups like the influential Coastal Conservation
League also are backing the bill.
“The state puts millions of dollars into projects that stimulate
urban sprawl,” said Christie Renken, the league’s legislative
director. “This provides an important economic incentive to reuse
land that is already developed.”
In addition to the support of environmentalists and the chamber,
20 House members have signed on as co-sponsors. No opposition has
developed; the vote on last year’s textile mill bill was nearly
unanimous. But the bill’s biggest hurdle could be time.
Talley hopes to have it out of the House Ways and Means Committee
this week, voted on by the full House next week and into the Senate
before the May 1 deadline for bills to move between chambers.
Reach Wilkinson at (803) 771-8495 or jwilkinson@thestate.com.
