Lancaster County may charge new homes and businesses countywide for growth
AI-generated summary reviewed by our newsroom.
- Lancaster County may expand impact fees beyond Indian Land to fund growth costs.
- Council plans to order a $72,000 study to assess fee amounts and project needs.
- Residential and commercial growth is spreading south, prompting county action.
As new homes and businesses continue to spread beyond the Indian Land panhandle of Lancaster County, higher costs to build them may soon follow.
Lancaster County Council has a vote planned for Monday night that could start the process of expanding development impact fees countywide. Impact fees, or charges on new construction used to offset growth costs, are now confined to the panhandle.
Impact fees are collected when builders apply for construction permits. Fees on residential construction typically become part of a higher sale price for the homeowner.
Monday’s vote would ask the county Planning Commission to begin a study to look at countywide charges. That study, along with a list of projects the impact fee revenue would fund, is required by state law before enacting any new fee. The study also would determine the amounts Lancaster County could charge for the new fees.
The impact fee study is expected to cost Lancaster County about $72,000.
Impact fees in the Rock Hill region
Impact fees have become common across the Rock Hill region, a three-county area that grew by 36,570 residents from 2000 to 2024, according to the U.S. Census Bureau.
Lancaster County’s 16.3% growth in that span is the third highest for any county in South Carolina, and by far the highest rate for any county in the Charlotte region.
Rock Hill, Fort Mill and Tega Cay have impact fees. The Fort Mill and Clover school districts have them too.
Impact fees can be charged on any construction, though they’ve largely been focused in this region on residential building. Revenue can be used for schools, police, fire service or capital needs, among other options.
Lancaster County started fees in the Indian Land panhandle for sheriff’s office, fire, parks and EMS service in 2021. Amounts vary by area, but they’re as high as $2,211 per new home, $1,572 per apartment and $2,009 for every 1,000 square feet of retail space.
The county started a separate fee for use by the Lancaster County School District which started in 2022. That fee, also limited to the panhandle, brings in $9,336 per new home and $9,904 per apartment. In March, the school board voted to explore charging impact fees countywide due to increased residential growth.
“We are still reacting to growth in the panhandle,” school board Chairman Melvin Stroble said at a joint meeting with school and county officials later that month. “Our goal is to get ahead of growth as it is sprawling toward Lancaster and into Kershaw.”
Lancaster County growth changes
For decades, region-topping growth rates in Lancaster County were almost entirely due to the Indian Land influx. Proximity to Charlotte, Ballantyne and Fort Mill from U.S. 521 led to massive subdivisions popping up where only farmland had been.
As Indian Land has filled in, though, the growth has taken Charlotte Highway and gone south.
Edgewater has thousands of homes planned along Fishing Creek Reservoir near the Chester County line. Roselyn will add nearly 2,000 senior living homes near Lancaster. The city of Lancaster has several large projects, including a 900-home subdivision near Lancaster Golf Club.
Last month the county Planning Commission heard requests for several projects, combining for about 260 homes, townhomes or apartments. This month, they heard plans for nearly 700 of them.
Then, there’s the large commercial growth that comes with all those new residences.
Costco and Target stores are expected to open before the end of the year in Indian Land. There’s also a Lowes Foods planned near them. Costco lists an October opening in an online section about coming stores.
Costco and Lowes declined to give an opening date when asked by The Herald this week. Target didn’t respond.
It’s likely to take several months before the county could finalize any new or expanded impact fee. The Planning Commission would ask for and then review a study before making its recommendation to Lancaster County Council. Council would have to pass three votes and hold a public hearing.
