Council should vote 'No' on TIF proposal

The idea of planned developments with protected green space, areas for recreation, schools and commercial construction is the wave of the future and a way to prevent urban sprawl. The goal is certainly a good one.

The prospect of bringing in tens of millions of dollars in tax dollars to the schools and county government may seem enticing.

But none of those reasons is strong enough for Aiken County Council to agree to create a tax increment financing district to the tune of $36 million. It would likely amount to a windfall for FineDeering Development Corp. of Houston, the developers of the proposed subdivisions. FineDeering is asking that the County agree to the TIF bond issue to help finance a large part of the infrastructure costs for Trolley Run Station and Sage Creek.

The money would help pay for roads, bridges and water lines in the two communities.

TIF districts have been used as a partnership between local government and the private sector to bring blighted areas back to life, typically in urban settings. Taxes from the renovated area are used to repay the TIF bonds.

Legislation adopted in June by the S.C. General Assembly allows for land in agricultural areas to be declared blighted. It is this section of the law that is being used to request the TIF in Aiken County.

There are a number of problems at issue if County Council were to approve the TIF bonds for the two projects.

It would amount to a public subsidy for private development, quite possibly putting other developers at a competitive disadvantage. If there were a proven inability to provide acceptable housing in our county, perhaps the argument for a TIF area would persuasive. But that is not the case as other developers around the county continue to build without the use of TIFs.

Should County Council approve this TIF, it would be likely that others would beat down the Council doors to take advantage of the new law and a new source of financing for developments all around the county. With a precedent set at Trolley Run Station and Sage Creek, how could the Council deny other developments? County Council should not become bankers for those in the development business.

A TIF is not a general obligation bond, and the County is not legally responsible should there be a defaulting on the project. There would be a black mark on Aiken County's bond status should the Council decide not to pay off bond holders in the event of a default. This is a position that Aiken County and its taxpayers should not be placed in.

Large communities such as Trolley Run Station and Sage Creek will place additional burdens on services provided by County Council and the Aiken County School Board. It is unknown how much more money County Council would need to provide adequate roads, fire protection and law enforcement coverage for the new developments. And it is equally unknown how many new students, if any, would come into the county causing greater expense for our local schools. A tax increase this year due to growth foretells that a larger population in coming years will increase taxes even more.

The areas where the two communities are proposed are not what most people would refer to as blighted. No one is avoiding Aiken County, and no industries are steering clear of this area because of the current condition of the two properties. If these were truly blighted areas being shunned by people and industry, they might be appropriate for a TIF.

The developers of Sage Creek and Trolley Run Station may make huge profits if their figures for home construction and sales stand up. There is no problem with that in a capitalistic society, and Aiken County would surely benefit from these planned communities at the same time.

But in our free enterprise system, those who reap the financial rewards are the ones who should also take the risks. It is they who should bear the weight of any potential losses rather than asking for financing from Aiken County Council. Other successful, large-scale planned developments have been built without the support of TIF funds.

If FineDeering goes ahead with these projects, they stand to be premium communities which will enhance the northern part of Aiken County and spur future commercial and residential development in that area. Sage Creek and Trolley Run Station are the types of planned developments that Aiken County will be fortunate to have and which others will hopefully emulate in the future. But they are private enterprises that should remain in the private sector and financed by the developers, not by TIF bonds from Aiken County Council.