AIKEN - The Aiken County school board voted Tuesday to reject a proposed $36.3 million bond deal between the county and private developers seeking help with infrastructure needs.
The board's decision came after members viewed an independent analysis of the proposed agreement between the county and the FineDeering Development Group.
The report, conducted by Dr. Harry W. Miley, Jr. of Miley & Associates in Columbia, showed that FineDeering's plans to build 5,000 houses on 2,400 acres on either side of Graniteville would eventually attract about 1,300 pupils.
The additional pupils would cost more than $25 million in the first 12 years and more than $61 million over a 30-year period, according to the report.
"I don't think there's any way we can support it with these numbers," school board member Jack Hunter said before the board's vote. "This report put the nail in the coffin. It's just not going to work."
The board's vote puts an official end to FineDeering's current push for public assistance in its proposed developments.
FineDeering officially announced Tuesday that it wants the county council to withdraw its request for a "tax increment financing" district. Under its proposed agreement, which the county council supported on first reading Aug. 17, the county would have created the districts around the developer's neighborhoods and used bond money to pay for infrastructure needs such as roads and sewer systems.
The issue has stirred an outcry from critics who say the county is giving money to the developers, while supporters trumpet the need for more growth near Graniteville.
In a statement Tuesday, FineDeering said it is its "desire that TIF financing is fully understood prior to proceeding.
"We certainly want the county council, the Aiken County school board, and all citizens to have the opportunity to have a full discussion and gather all the pertinent facts about this matter prior to moving forward," the FineDeering statement said.
Richard Darrah, the president of FineDeering, said the bond deal is not necessary for completion of the project. He declined to discuss the possibility that FineDeering might reapply for public assistance.
Also, the developer's own studies counter some points in Mr. Miley's report. For instance, FineDeering contends that some students who will move into their neighborhoods will already have lived in Aiken County and therefore would not create an additional burden on the school district.
And according to FineDeering's financial projections, there would be enough tax revenue after the first three years of building to repay the bond and send additional money to the county and school board.
Reach Nathan Dickinson at (803) 648-1395, ext. 109, or nathan.dickinson@augustachronicle.com.
