UNION COUNTY — A $2.5 million expansion by a local industry will soon be part of a multi-county industrial park located in Union County.
In July, Standard Textile announced plans to expand its existing manufacturing operations at 100 Highpoint Drive. The goal of the $2.5 million investment was to expand, consolidate and incorporate new innovations in terry towel finishing in Standard Textile’s U.S. terry towel manufacturing operations. The company manufactures textiles for customers in the health care, hospitality, decorative products and industrial laundry markets. The expansion, which was expected to create 15 new jobs, was expected to be completed by the end of September.
On Tuesday, Union County Council voted unanimously to approve first reading of an ordinance including the Standard Textile expansion in a multi-county industrial park agreement with Spartanburg County. The park, which will be located in Union County, would make Standard Textile eligible for job tax credits available to companies and industries that locate in a multi-county industrial park.
Its inclusion in the multi-county industrial park also makes Standard Textile eligible for a fee-in-lieu of taxes agreement with the county which would enable the company to pay a lower property tax rate on its expansion. Under the agreement, Union County, as the location of the industrial park, will get 99 percent of the revenue generated by the expansion while Spartanburg County will receive one percent.
Inclusion in the park also makes the company eligible for infrastructure credits which could help cover the cost of any infrastructure improvements that would serve the county.
The ordinance authorizing the multi-county industrial park agreement states that it would take effect the first day the property comprising the project is purchase or acquired. It would end five years after the last day of the company’s tax year during which the initial phase of the project is placed in service. The ordinance states that this period was expected to begin in 2013.
Supervisor Tommy Sinclair said the county is seeking to implement a multi-county industrial park agreement for the project at the request of Standard Textile. He said the agreement is in keeping with the county’s efforts to promote economic development, particularly where existing industry is concerned.
“We participate in these agreements with Spartanburg County to support existing industry as they attempt to expand,” Sinclair said.
Since the early 1990s Union County has partnered with Spartanburg County for a number of multi-county industrial parks beginning with the first agreement which helped bring BMW to Greer.
Union County Development Board Executive Director Andrena Powell-Baker said that multi-county industrial parks can play an important role in facilitating the expansion of existing industry and job creation.
“This multi-county park agreement is another way for Union County Council to demonstrate their support of an existing industry expansion,” Powell-Baker said. “Because Standard Textile is creating new jobs in South Carolina, they are eligible for a tax credit against their annual corporate income tax liability.
“The value of these credits is determined annually depending on the tier of the county and the number of jobs that are created,” she said. “As of 2013, Union was a Tier IV county, and the annual credit was $8,000 per job. By designating the site as a “multi-county industrial park or ‘joint county industrial and business park,’ Standard Textile will be able to take advantage of an additional $1,000 credit per net new job.”
Editor Charles Warner can be reached at 864-427-1234, ext. 14, or by email at firstname.lastname@example.org.