Knowledge Park plan would raise Rock Hill property’s value

Let’s face it, the old “build it and they will come” refrain requires some faith in the unseen and the uncertain. Buying into the concept of tax-increment financing is, to some extent, a gamble.

But it’s a gamble with a good track record in York County. Rock Hill officials note that, among other projects, tax increment financing districts – or TIFs – have made expansion of the Galleria, improvements to downtown and construction at Riverwalk possible.

In each case, the city, Rock Hill school district and York County agreed to forgo tax revenues from property within the TIF districts so the money could be used for new roads and sidewalks, utilities and other infrastructure improvements. Those improvements, in turn, helped attract development such as office buildings, stores and restaurants.

And, in the end, tax revenues from those new investments more than make up for the revenues taxing entities did without during the term specified in the TIF agreement.

While the process works, it is not uncommon for the county or school district to weigh the pros and cons. And that has been the case with the latest effort to extend the TIF district that comprises Knowledge Park, the plan for the site of the former Rock Hill Printing & Finishing Company known as The Bleachery.

While the school district has agreed to the 10-year extention, the county still is mulling its options. The County Council has established a committee to review the documents the city has provided regarding the process and committee members have met several times with Rock Hill officials to discuss details.

Recently, though, Mayor Doug Echols has expressed his vexation with the delay on the county’s part. He notes that the county routinely approves fee-in-lieu-of-tax agreements – or FILOTs – to help induce companies to invest in the county.

Five such agreements with different companies approved by the council in 2014 provided companies with $175 million in tax breaks. That’s more than the county would be expected to forgo from the Knowledge Park tax district.

County officials say this is something of an apples-to-oranges comparison. When FILOTs are granted, the county receives pledges from companies to invest a specified amount of money and create a certain number of jobs.

But Echols argues that both FILOTs and TIFs require the county to forgo tax revenues. And, in the case of FILOTs, “the money goes directly into the pocket of a private business entity,” he said.

County Councilman William “Bump” Roddey, who favors the county’s participation in the TIF extention, also pointed out that the fee agreement with a company is not always a sure thing.

“Once (the company) gets to the end of the FILOT (period), they’re not obligated to stay. They could decide to pack up and chase incentives somewhere else,” he said.

In other words, both arrangements are something of a gamble.

We think the county is justified in studying all the angles of the TIF plan and weighing its options carefully. A 10-year commitment represents a significant amount of time and money.

But we also believe that the only way for the county to maximize the tax benefits from the Bleachery site is to support its development. If the plan doesn’t go forward, there just isn’t much there in terms of revenue producing property.

And that doesn’t take into account the many social and cultural benefits that would be derived from Knowledge Park. It has the potential to revitalize the entire heart of the city.

Caution is fine. But we think another old dictum applies: Sometimes you have to spend money to make money.

We hope that, after reviewing all the facts and figures, York County decides to join the city and school district in supporting this project.

This story was originally published March 29, 2015 at 1:14 AM with the headline "Knowledge Park plan would raise Rock Hill property’s value."