Ethanol plant expected to generate

$13 million in tax revenues for county

Staff Writer

A $250,000 investment in the new ethanol plant will yield a $13 million return for Union County over the next 20 years.

Union County Council voted unanimously Wednesday to approve first reading of an incentive package for the Congaree Bio Energy LLC barley ethanol plant to be built near Carlisle. The package includes a 20-year fee-in-lieu of taxes agreement that lowers the company's annual property tax rate from 10.5 percent to 6 percent. Supervisor Donnie Betenbaugh said this will generate $13.1 million in tax revenue for the county over the life of the agreement.

The package also includes a $250,000 special source credit which Betenbaugh said matches a $250,000 allocation from the S.C. Department of Commerce. The company will use the funds for road and water line improvements to the plant site.

The company will be able to take the $250,000 credit off its taxes if it meets the requirements of a minimum investment of $110 million and 55 jobs generated. Betenbaugh described this as an investment by the county which will yield over $13 million. He compared it to spending $25 in order to get back $1,300, an investment he said anyone would make.

The plant, which will be located at the corner of River Road and Woodyard Road, is being built by Virginia-based Osage Bio Energy. The company plans to invest $161.5 million on the facility which will employ 75 people in the production of barley-based ethanol. Betenbaugh said $110 million of the company's investment will be for the actual construction of the facility with the balance used for air pollution control mechanisms required by DHEC and the EPA.

As for the minimum investment and job creation requirements, Betenbaugh said this is standard practice and the companies involved usually exceeded the minimum. In its agreement with LSP Automotive Systems, Betenbaugh there was a requirement for a minimum investment of $45 million and 45 jobs generated. As of Wednesday, LSP's investment totaled over $100 million with 170 people employed at its Commerce Park facility.

“You always put in a number so that they can attain it,” he said.” This is a minimal investment by the citizens of Union County and it's an actual investment by themselves (Congaree) because they're going to be reducing their taxes for one year by $250,000. After that point there won't be any further reductions.

“We hope to work with them and as part of the negotiations give them an attainable goal that they can reach,” he said. “They feel certain they can reach that and, of course, they anticipate they can have that goal reached quickly. We're excited about it.”

The package also includes a requirement that Congaree issue a biannual report to council on the number of Union County residents employed by the plant. Betenbaugh said similar requirements were included in the incentive package with Disney Direct Marketing, Dollar General and LSP.

“We like to see the return on the incentives investments in companies on the job side,” he said. “We want to see as many Union County residents as possible employed at these facilities.”