Council should reject TIF

Tax Increment Financing (TIF) has become the most significant political issue for Aiken County in recent memory. And for good reason. As proposed, the Sage Creek/Trolley Run Station TIF with its minimum $65 million price tag (principal, interest, fees, etc.) constitutes the largest, single capital investment project in the county's history. If approved, your County government would be spending the equivalent of three years of total residential property tax receipts in order to develop two parcels of private property.

So why wasn't an issue of this magnitude even on the radar screen just a few short months ago? It certainly wasn't discussed or considered for inclusion in the Capital Project Sales Tax Referendum approved by the voters last November. And you definitely won't find any mention of TIF in general or this project in particular in the recently completed Together Aiken County Strategic Plan. I think the answer to this question is quite simple. This proposal wasn't originated by any public body nor was it the result of a grassroots community-based initiative. Instead, it was the brainchild of some entrepreneurial-minded businesspersons who no doubt see this TIF as a means to reduce investment risk, accelerate the pace of development and dramatically increase their profits.

Regrettably, in economics as in life, there's no such thing as a free lunch. While there will no doubt be other winners if the TIF moves forward (i.e., any direct service provider such as Valley Public Service Authority), the costs and risks will be spread over a wide spectrum of individuals and groups creating a number of losers beginning with the taxpayer.

Even under a best-case scenario the TIF district will not generate sufficient incremental revenue to pay for the required services. Someone will have to make up this difference (i.e., increased taxes) or services to everyone will have to be reduced. Certainly other developers and builders will be adversely affected as up to 500 deeply subsidized homes are annually brought online while their cost of doing business will go up as they are forced compete with the new subdivisions for labor and material. I expect some will be driven out of business.

Existing homeowners may also find it difficult to sell their properties for what they might otherwise expect as a buyer's market will have been artificially created. I could go on an on with the potentially damaging impacts but most of these have already been well chronicled in this newspaper. Suffice it to say, that in many folks' opinion, including that of Councilman Gary Bunker, the harmful consequences of enacting the TIF proposal far outweigh the benefits.

I believe the Sage Creek and Trolley Run Station developments will be very successful with or without the TIF, and I look forward to working with the developer. I commend Weldon Wyatt and the FineDeering Group for their vision and willingness to invest in Aiken County.

Finally, had the S.C. General Assembly not amended the TIF legislation on June 2, so that unspoiled agricultural property can now be considered "blighted" and therefore subject to "re-development," this whole issue would be moot. However, as my colleague Eddie Butler on County Council is fond of saying, "Just because something is allowed, doesn't make it right." The ball is squarely in our court. I am confident that at the end of the day your Council will do what is best for all its citizens and reject the Sage Creek/Trolley Line Station TIF initiative.