‘A very tight timeline’: Rock Hill on what’s next to strike Panthers, downtown deals
Rock Hill recommitted to billions of dollars worth of economic development projects in the city, as leaders await critical details to make the deals happen.
Rock Hill City Council voted Monday night on issues needed to bring the $2 billion Carolina Panthers headquarters project along Interstate 77. They also voted to continue the more than $500 million of ongoing or planned construction downtown. Both projects still need York County Council approval.
Panthers project
The Panthers vote Monday involves setting up a joint business or industrial park to allow the city, county and school district to negotiate terms of the deal. The team is planning to build a practice facility with an event venue and possibly hotels, apartments and retail.
City attorney Brent Thompkins said the business park vote keeps the Panthers project on schedule and allows for public infrastructure funding to support it. The team intends to open its facilities by mid-2022.
“It’s a very tight timeline,” Thompkins said.
The business park agreement still needs a second reading. Mayor John Gettys said the move Monday night is an agreement by the city to keep negotiations going.
“Basically all we’re doing tonight is putting on record that we’re agreeable, on an agreement that we haven’t reached yet, so that when we get to that final resolution with the county and Panthers and schools — which we’re already there with the schools and the Panthers — it gives us the opportunity to sort of move this thing through faster.”
Further details on tax incentives involving all the parties will come by final reading.
Downtown project
This agreement is similar to one downtown. Two tax districts set up to pay for public infrastructure need changes, city leaders say. The city wants to combine the two districts and increase the amount of money it can borrow against expected tax revenue from them.
Council approved its part in those changes, but still needs an agreement with the county and schools.
“We’re continuing to negotiate with the county,” said David Vehaun, city manager. “This just keeps us moving that process as quickly as we can.”
How tax districts work
Tax increment districts work by borrowing money for public infrastructure in designated areas, then paying the money back from increased tax revenue generated by redevelopment in the district. Rock Hill used more than $11 million already of a $20 million cap for the downtown district on projects like Fountain Park and Elizabeth Lane parking deck. Revenue from Fountain Park Place, 139 Main and The Anderson apartments is paying it off.
The city used almost $36 million of its $40 million textile district cap to make improvements on White Street and renovations at the former Rock Hill Printing and Finishing site. Tax revenue from Family Trust and University Center is paying for it.
With most of the combined $60 million accounted for, the city wants to combine districts and allow borrowing up to $85 million. Parking decks would make up about $67 million.
“Most of that is on parking decks,” Vehaun said.
The city anticipates about $394 million in construction still to come from a hotel, apartments, residential, retail and office construction, such as redeveloping the former Herald and Good Motor Co. sites, along with Springs Global.
City leaders say the tax district caps were set up years ago without any concept of the large-scale redevelopment taking place now. It doesn’t fund private investment, Vehaun said.
“These are things that we’re pretty sure, that we’re already negotiating with people on,” Vehaun said.
Even if they stall, the city is protected, Vehaun said. Similar agreements were made with Riverwalk so the city could take ownership and sell the massive property if construction didn’t happen.
“We don’t enter into new debt in a speculative way,” Vehaun said.
City leaders say they’d like to have agreements with the school district and county ready for final votes by February or March.
Jim Reno, city councilman, said it’s important the city works quickly on the tax districts not only to finalize the pending redevelopment deals, but for how the city intends to repay borrowed money through new tax revenue.
Councilwoman Kathy Pender said it’s important to consider what the city stands to gain.
“(We’re) doing this to create jobs, to revitalize our downtown core and grow the tax base so at the end of this 20 years when this debt is paid and we have these new companies, new development, that revenue will then go into the tax base for the whole community.”
