CHARLESTON, S.C. — Charleston County Council approved on Oct. 28 an ordinance amending a fee-in-lieu of tax agreement with Metal Trades LLC, formally identified in county materials as Project Flare, advancing an amended deal the county says expands the original $14 million package to a larger investment figure and adjusts the assessment ratio for the property.

Councilmember Boykin and other members said the change reduces the assessment ratio from 10.5% to 6% and, according to staff remarks on the record, ties to a revised total investment figure now characterized as $66 million. The amendment passed third reading by roll call, recorded as seven ayes and two nays.

The vote followed extended public comment in which several speakers urged the council to revoke or reconsider incentives tied to defense contractors. Miranda, a resident who said she recently moved from Washington, D.C., urged the council to “revoke Elbit’s fee in lieu of taxation agreement,” saying the company’s products have been used in overseas conflicts and contrasting incentives for large contractors with taxes paid by small local businesses. Colin Holloway called the arrangement “completely unacceptable” and said the county should act with moral clarity.

Bert Morrison pressed the county to publish detailed annual figures showing the value of fee-in-lieu agreements, saying public budget documents should list the amount of foregone revenue and longer-term fiscal impact. “Publish how much value we are investing,” Morrison said. “If it’s for a weapons manufacturer, that should be noted.”

Council discussion focused on whether the amendment functions as an incentive that creates a larger tax base or as a tax giveaway. Councilmember Wurman urged more discussion but said he believed expansion of the facility required the agreement and that “there is a very strong case” the county would see net tax revenue gains because the expansion would not occur otherwise. Several councilmembers suggested the subject merits further review at an economic development committee meeting.

A county staff speaker summarized the technical terms on the record, stating the agreement keeps an assessment ratio at 6% and referenced the original $14 million baseline in the original agreement. When asked for a precise dollar estimate of foregone revenue, staff gave a different figure for property tax revenue the taxing entities would receive under the deal but did not provide a single-line quantification of the county’s net fiscal cost during the meeting.

Outcome: The ordinance authorizing an amendment to the fee-in-lieu agreement with Metal Trades LLC passed third reading by roll call vote (7 ayes, 2 nays). No mover/second was recorded in the public roll call segment.

Why it matters: Fee-in-lieu agreements change the taxable assessment or timing of tax collections in exchange for a company’s capital investment and job commitments. Supporters say they attract or retain industrial investment and jobs; opponents say they function as corporate tax breaks that shift burdens to other taxpayers and reduce transparency unless the county publishes clear annual fiscal impacts.

What’s next: Councilmembers agreed to hold an economic development committee meeting to dig deeper into the fiscal assumptions behind such agreements and the county’s transparency practices.