Council approves reinvestment-zone designation to begin process for Royal Oak expansion

The Greenville City Council unanimously approved a reinvestment-zone designation Aug. 12 to begin the formal process for a planned expansion by Royal Oak in the city—s industrial park. The step is procedural but significant because it is the required first action that allows the city and county to consider a future tax abatement that Royal Oak has requested as part of a multi-year expansion plan. Greg Sales of Greenville Board Development told council the state requires advertisement and set timing for reinvestment-zone and abatement requests; if the council approves the zone tonight, staff will publish the required notices and then return with a request for a 50% tax abatement for up to 10 years. Sales said the state—s timetable and public-notice requirements mean the full approval process will take multiple months; he also said Royal Oak told staff that without local incentives it may build its expansion in Alabama rather than Greenville. Staff recommended approval to begin the process. Sales and staff explicitly told council that existing property and improvements already on the tax roll would not be covered by any abatement; state law limits abatements to new investment. The council voted to approve the reinvestment-zone designation and directed staff to proceed with the required publication and later agenda placement for the formal abatement action. No abatement was approved on Aug. 12.