York County Council approved first reading on Oct. 20 of an ordinance authorizing an infrastructure-credit agreement for an economic-development prospect identified in staff materials as "Project Sample." The vote followed vigorous discussion about intergovernmental communication, the scale of the proposed credit and whether affected school districts should receive briefings before council commits tax credits.

The proposed infrastructure-credit instrument would make credits available to the company and the project in connection with establishing or expanding facilities in the county and would function as a partial local subsidy by reducing the tax burden for a defined period. Council discussion focused on how the agreement would affect local school-district tax receipts; Councilwoman Bridal asked for a deferral so the Rock Hill School District could review the proposed commitments and said the district had not received prior notice of the specific funding arrangement. Bridal stated the amount of school-district tax credits potentially involved was material, and she asked for a meeting between the parties before council advanced the item.

Economic development staff told council they had contacted the school-district chair and offered to brief the board; the project team indicated willingness to participate in such a meeting. Staff also explained the mechanics of the proposed infrastructure credit: the agreement spreads the up-front credit over a contractual term so the company receives a credit while the county and affected jurisdictions receive tax revenues from the project that otherwise would not exist. Staff estimated the Rock Hill School District portion of the agreement, on an annualized basis, would be roughly in the range of the six-figure annual contribution (staff estimate provided during discussion) but noted the project also brings new assessed value and local employment opportunities.

Council members were split on procedure. Some members urged postponing first reading to give the school district time to consider the proposal; others argued first reading is a procedural step that preserves the countys ability to continue negotiations while staff arranges briefings. After debate, the council defeated the amendment to defer first reading and instead proceeded; the first-reading motion ultimately passed on the floor (with several members representing reservations about timing and communications). Councilmembers asked economic development staff to coordinate briefings with the Rock Hill School District and other affected entities during the ensuing review period.

What this means: First reading authorizes the county to move forward with the infrastructure-credit ordinance process; two more council readings are required for final approval. Council directed staff to brief the Rock Hill School District and other affected parties before later readings and to provide additional project-level detail to council.

Ending: Council approved first reading but also asked staff to engage directly with the affected school district to ensure the districts board members understand the financial mechanics and potential revenue impacts before council completes subsequent readings.

Actions recorded: Motion to defer first reading (made by Councilwoman Bridal) failed; motion to approve first reading carried; council directed staff to brief Rock Hill School District and other affected entities before later readings.