Commission approves economic development tax exemption for Project Hydro at ITEC Park
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Summary
The commission voted to adopt an ordinance granting an economic development ad valorem tax exemption to Project Hydro at ITEC Park. Staff said the applicant will construct at least $34 million in capital improvements; the exemption schedule phases down over nine years and does not apply to land value or other taxing authorities.
The City of Newberry commission adopted an ordinance granting an economic development ad valorem tax exemption to Project Hydro for a facility at ITEC Park.
Staff told commissioners the applicant indicated the first building would represent at least $34,000,000 in capital investment and that the proposed exemption schedule is 100% for years 1–2; 80% for years 3–4; 60% for years 5–6; 40% for years 7–8; and no exemption in year 9 onward. Staff and the clerk clarified the exemption applies to capital building and tangible personal property, not to the value of land, and it does not apply to the city's fire assessment or other taxing authorities.
Commissioners asked about compliance and reporting. Staff said the applicant must submit annual data to the city and file forms with the property appraiser to maintain the exemption; staff identified about $12,000,000 reported as tangible personal property. Commissioners also discussed that this action covers the initial building and that additional buildings would require separate consideration.
The commission moved and adopted the ordinance granting the exemption by voice vote. Staff noted the exemption and the authority to terminate it if the applicant fails to meet requirements.
