Lexington County approves fee-in-lieu deal for All Tape Adhesive project after public hearing

Lexington County Council on Feb. 25 approved Ordinance 25-01, authorizing a fee-in-lieu-of-tax (FILO) agreement and special source revenue credits for All Tape Adhesive Manufacturing Incorporated, identified in the ordinance as Project Aqua, and authorizing sale of Lot 9 at the Saxe Gotha Industrial Park.

The ordinance, presented during a public hearing and voted on at second reading, says the project would induce a $70,000,000 investment and 30 jobs in Lexington County. The council voted in favor during a roll call; Councilwoman Wessinger, Councilman Fisher, Councilman Cockrell, Councilman Hudson, Councilman Brigham, Councilman Bishop, Vice Chair Conwell and Chairman Cullum recorded “yes.”

A staff member summarized the ordinance’s terms and said the agreement includes special source revenue credits and continued participation in a multi-county industrial and business park for the project. John Wall, who identified himself as a representative with Burn Foreman, spoke briefly in support, saying the firm was “really excited about this project and the number of jobs and the investment they’ll bring.”

During the public hearing, Dan Hagen of Swansea, a resident who identified his address, urged the council to use a different negotiating approach to maximize short-term revenue from FILO agreements. “By making these two small adjustments to agreements in the future, the county can increase revenue throughout the FILO investment period yet still induce sponsors to invest in our economic future,” Hagen said, recommending phased assessment ratios and periodic millage adjustments rather than permanently set low rates.

The council opened a standard three-minute public comment period for proponents and opponents; no one signed up to speak in opposition. Vice Chair Conwell made the motion to approve Ordinance 25-01; Councilman Hudson seconded. The clerk called the roll for second reading and the ordinance passed.

What passed: the ordinance authorizes (1) execution and delivery of a FILO and special source revenue credit agreement between Lexington County and All Tape Adhesive Manufacturing Inc.; (2) the provision of certain special source revenue credits; (3) continued participation of the project in a multi-county industrial park; and (4) sale of county-owned Lot 9 at Saxe Gotha Industrial Park to Marlborough Development Team Incorporated, identified in the ordinance as part of Project Aqua.

Why it matters: FILO agreements and special source revenue credits are tools counties use to attract large capital investments; the project’s developer and county staff framed the deal as an inducement for a substantial private investment and new jobs. A member of the public urged the council to adjust typical FILO terms to increase short-term revenue and to require periodic millage adjustments during long investment periods.

Votes at a glance

- Ordinance 25-01 (All Tape Adhesive Manufacturing Inc., “Project Aqua”) — Motion to approve (second reading): Moved by Vice Chair Conwell; seconded by Councilman Hudson; outcome: approved (roll-call yes votes recorded for Wessinger, Fisher, Cockrell, Hudson, Brigham, Bishop, Conwell, Cullum).

- Minutes (January meeting minutes) — Motion to approve: moved and seconded on the consent agenda; outcome: approved (roll-call recorded earlier in meeting).

- Apply/Submit letter of interest: South Carolina Department of Natural Resources flood mitigation grant — Motion to approve (to apply/submit letter of interest): moved by Councilman Cockrell; outcome: approved (roll-call yes votes recorded).

- Resolution R2503 — Authorize execution of a reserve hazard mitigation infrastructure grant between Lexington County and the South Carolina Office of Resilience — Motion to approve: moved by Councilman Cockrell; seconded by Councilman Hudson; outcome: approved (roll-call yes votes recorded).

- Award: 2025IFB-301 Bixburg/Leesville Industrial Park parcel on-site improvements — Motion to award contract: moved by committee member; seconded by Councilman Hudson; outcome: approved (roll-call yes votes recorded).

Other items presented

- A budget amendment for Fire Station 34 (Northlake) was presented by Mr. Sturkey showing an appropriation transfer and additional funding increases totaling $2,230,000 to cover remaining construction costs; the presentation described an estimated project budget of about $6,000,000 and noted $4,300,000 of the funding is drawn from state/local fiscal recovery funds. The transcript records the presentation; no separate roll-call vote on that amendment was shown in the public portion of the meeting minutes excerpt.

Council procedure and next steps

The ordinance was adopted on second reading; the county’s staff and the project’s representatives said they were prepared to move forward under the agreement’s terms. Any future actions to finalize a property sale or to implement the FILO agreement would follow the terms of the adopted ordinance and applicable state law.