Is it time for Charleston County to take another look at the incentives
it's offering to lure new industry here?
That's the question that County Council members raised last week even
as they endorsed a multimillion-dollar incentive package to lure
DaimlerChrysler's Sprinter van assembly plant.
Councilman Curtis Bostic praised county economic development director
Steve Dykes, then added, "Maybe we're getting too much of a good thing. If
people want to preserve beautiful land, we're going to have to take a
measured approach to economic development."
Councilman Ed Fava also wondered if council could use stand to have a
discussion about what incentives to use and which ones not to use.
He recalled how the county pushed very hard to lure new industries a
decade ago to compensate for the closure of the Charleston Naval Base and
Shipyard and noted, "We're still running on a railroad track with these
projects."
Others sensed the county's geography could limit its ability to lure
new industries.
"I think we're nearing the point where our natural resources are
limiting what we can do," Council Chairman Leon Stavrinakis said. "We've
got an oddly shaped county and a lot of land you can't use for
anything."
Councilman Tim Scott doubted whether economic development efforts are
driving the area's population explosion as much as its coastal climate,
but he said the county needs good available jobs for the people who come
here.
He also said the county should focus on cherry-picking the kind of jobs
it desires "and how we can get the kind of people we want in Charleston
County."
None of these concerns slowed council members' enthusiasm for the
DaimlerChrysler deal, which is expected to create 220 new jobs in North
Charleston. On Tuesday, they're expected to give unanimous approval to a
three-pronged incentive package that includes:
--Allowing DaimlerChrysler to receive previous incentives given to
American LaFrance, whose property DaimlerChrysler took over. Dykes said
this break will be worth about $311,000 next year.
--Providing $50,000 from the county's economic development fund to
relocate utilities near the DaimlerChrysler van plant.
--Giving DaimlerChrysler a break on its property taxes, specifically
assessing its property at 6 percent, instead of the standard 10.5 percent.
That would amount to about a 40 percent tax break for 20 years.
Dykes said the company still will pay about $22.2 million in taxes to
the county, schools and other local governments under the deal, and he
declined to estimate the total dollar value of the incentive package.
"We use this incentive sparingly, and we use it strategically in
situations where we feel that, but for the use of that, the investment
would go somewhere else," he said. "Would you rather have 60 percent of
something substantial or 100 percent of nothing?"
It's unclear when - or if -County Council will have a more in-depth
discussion on what incentives it wants to use and under what
circumstances.
The issue wasn't on the agenda for its day-long retreat Saturday at
James Island County Park, but council's underlying concerns aren't
expected to change soon.
"We give away tax base every time we do incentives, for some period of
time," Stavrinakis said. "There is somewhere out there a limit to how much
of this you want to do. At some point, the quality of life will be
impacted."
Reach Robert Behre at 937-5771 or at rbehre@postandcourier.com.