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Charleston County approves 20-year fee-in-lieu deal for Alpha Sheet Metal Works
Summary
County Council voted 7-2 to authorize a 20-year fee-in-lieu of tax agreement with Alpha Sheet Metal Works Inc. and 95 17 Realty LLC after staff said the arrangement would secure $3.7 million in private investment and create 14 jobs; critics raised concerns about small-business parity and fixed millage terms.
CHARLESTON, S.C. — Charleston County Council on May 20 approved an ordinance authorizing a 20-year fee-in-lieu of tax (FILOT) agreement with Alpha Sheet Metal Works Incorporated and 95 17 Realty LLC, a deal council members and staff said will support a $3.7 million private investment and the creation of 14 new jobs.
Council members said the agreement will set a 6% assessment ratio and fix the millage at 314.9 mills for 20 years. Economic development staff told council the company plans $3,000,000 in construction real property and $700,000 in business personal property, with an average annual salary for the 14 new positions of $75,325.71 and an added payroll of just over $1 million at full build-out. Staff estimated taxing entities would receive roughly $1,200,000 over the 20-year term.
Supporters including Councilman J. Pryor (Council member) and others said the FILOT induces investment that likely would not happen otherwise. "If they had not gotten the fee, we may not have gotten any money," an economic development staff speaker said during the public presentation, adding that the agreement brings a predictable rate the company can plan around.
Opponents pressed the county to explain what was being given up and whether similarly situated small businesses receive equal treatment. Councilman Kabrowski (Council member) asked how many small businesses are currently taxed at 10.5% and whether the county is creating favoritism; staff and council supporters responded that manufacturing businesses historically are taxed at higher rates and the state FILOT lowers that to 6% for manufacturers, the same rate paid by many other commercial businesses. Kabrowski and Councilman Wurman voted no.
Council conducted a roll-call vote: Boykin, Darby, Honeycutt, Moody, Pryor, Sass and Middleton voted aye; Kabrowski and Wurman voted nay. The ordinance passed third reading with seven ayes and two nays.
Council members noted contract terms include clawback provisions and that the county aims to ensure companies meet job and investment commitments. Several members also emphasized the FILOT can be a tool to retain and expand local employers tied to defense and manufacturing supply chains.
The council's action authorizes execution and delivery of the FILOT agreement; documents will be finalized by county staff and returned to the county files for implementation.
