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Charleston County approves fee‑in‑lieu agreement for Boeing after public questions on incentives
Summary
After council members pressed staff for details in a public hearing, Charleston County approved an ordinance authorizing a fee in lieu of tax agreement with Boeing, including an enhanced fee rate and a special source revenue credit; council passed the measure on third reading, 8–1.
Charleston County Council voted Tuesday to authorize the execution of a fee in lieu of taxes (FILOT) agreement with the Boeing Company, approving enhanced tax treatment and a special source revenue credit intended to secure Boeing's expanded investment and jobs in the county.
During the public portion of the hearing, Councilmember Boykin asked staff whether Boeing had indicated it would leave the area without incentives and requested clarity on the size and duration of the incentives. A staff member told the council the agreement is a "but‑for" case — that companies, including Boeing, had indicated they would be unable to make additional capital investment and hire the jobs without the incentives. Staff said the agreement will bring an estimated $60,000,000 to other taxing entities and about $9,000,000 to the county over the term of the deal, and staff projected a roughly 6:1 cost‑benefit ratio over the 30‑year term.
Specific terms described during the public discussion included an "enhanced fee" taxing rate of 4% (rather than the 6% standard fee), applied for 30 years, and a special source revenue credit (SSRC) returning 50% of the property tax paid to Boeing for 30 years. Staff said the 30‑year period begins when Boeing begins placing capital investment under the agreement.
On third reading the ordinance authorizing the execution and delivery of the fee in lieu of tax agreement passed by roll call, 8 ayes and 1 nay. The lone recorded nay was Councilmember Kabrowski; all other councilmembers on the roll call voted aye. The ordinance authorizes the county to enter an FILOT arrangement with Boeing, provides for certain special source revenue and infrastructure credits, and contemplates allocation of FILOT proceeds for multi‑county industrial business park purposes.
Council discussion before the vote focused on transparency and public disclosure of the agreement's terms; staff answered questions about the tax rate, SSRC percentage, estimated fiscal benefit to county and other taxing bodies, and the 30‑year term. No amendments were offered or adopted during third reading.
The ordinance authorizing the agreement passed third reading at the meeting; the ordinance text and the executed agreement will determine the final implementation timetable and effective dates.
