Rock Hill leaders propose way around controversial tax exemption for apartments
The city has come up with a proposed work around on a big sticking point — apartments.
Council members say the plan is badly needed because of a controversial state law. But a developer asked Monday night to hold off on a final decision for a major project that brought the issue to light.
City council deferred a decision that would allow 475 homes, townhomes and apartments along with commercial space and a possible future grocery store at Mt. Holly and Albright roads, south of Saluda street. York Capital and Albright Corners asked for a the zoning change on 127 acres there.
State apartment law, tax exemption
Last month, Mayor John Gettys said the proposed plan would add residential property to the south side of Rock Hill and could help bring in “a grocery store which we desperately need.”
The problem is, the plan calls for 400 apartments.
A recent state law change expands tax exemptions and allows an owner of an apartment complex to avoid paying property taxes by claiming the property as affordable housing.
Gettys said last month property owners in Rock Hill and statewide have done it.
Across the board, council members said the city isn’t likely to approve any new apartments without either a law change or some type of agreement where developers pay taxes.
Rock Hill took a shot at how an agreement between the city and a developer might work. Such agreements are allowed in the same state law that created the exemption for developers.
The final document to rezone the south side property, which the property owner asked to defer to a later meeting, included new provisions by the city. Included is a set of covenants to cover any building or occupancy permits, site plan approvals or other city requirements impacting development.
According to the zoning document, the new covenants would prohibit any current or future property owner or developer from accepting any local, state or federal tax exemption, or tax assessment reduction, unless the city also agrees.
“Such restriction shall restrict, bind, burden and encumber the actual property and property interests and shall also run with the land,” the document reads.
Only the city would be able to waive the restrictions.
If the negotiated zoning requirement proves an effective work around, the impact could be much larger even than the significant south side project. City leaders say even if there is a push to change state law it likely wouldn’t start until next year. And, there’s no guarantee the law will change at all.
Without negotiated agreements or a law change, city apartment construction could come to a stand still on city properties that don’t already allow apartments.
While the apartment decision will have to wait, city council did move forward with initial approval on other items. They include:
▪ First Citizens Bank asked to rezone 132 Herlong Avenue with plans to construct a new facility. The bank operates out of neighboring property but would build an almost 9,700-square-foot, two-story bank on vacant property at the corner of Herlong and Ebenezer Road. The existing bank building likely would be leased or sold, according to city planning staff.
▪ Westminster Presbyterian Center applied to rezone four parcels on McDow Drive in front of its main site and Westminster Presbyterian Church. Three are parking lot space. One is undeveloped.
The undeveloped parcel is one of seven in front of Westminster Presbyterian Center, owner of Westminster Towers, that could be developed as a continuing care facility with attached, duplex units. The units would mimic the style of existing homes in the area, according to city staff.
▪ Oakland Avenue Presbyterian Church asked to rezone more than an acre on Park Avenue and the Aiken Avenue extension. The site is between the church, University Center and Winthrop University.
One of three parcels has a building on it, once a residence but most recently an office. Another is vacant, and another had an apartment building but it was demolished in 2020. The zoning change would allow the church to resume office use on the existing building.
This story was originally published October 25, 2023 at 12:03 PM.
