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Council approves emergency clause for CRA deal to incentivize $2.1 million investment by GHS Leasing
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Summary
The Greenville City Council adopted an emergency Community Reinvestment Area (CRA) agreement with GHS Leasing LLC that phases in tax exemptions to encourage an estimated $2,125,000 investment and a commitment to one new job; council members said oversight provisions allow revocation if commitments are unmet.
Greenville City Council members voted to adopt an emergency Community Reinvestment Area (CRA) agreement with GHS Leasing LLC on Dec. 16, directing the city to enter a tax-incentive arrangement intended to spur private investment in the Greenville CRA area.
Law Director Regan told council the proposed CRA would allow the city to collect a reduced share of taxes on improvements during an initial period so a developer will "have the upfront cost to get the project established" while lowering early operating costs. "He's investing $2,125,000 in this project," Regan said. "What all we're doing is we're delaying the realization of the increased real estate taxes." He described the typical schedule under discussion: 25% of tax on improvements in the first five years, 50% for the next 10 years, and 100% thereafter.
Council members asked how the agreement compares with prior CRAs. Regan cited previous deals for GPS Computers, eSchool redevelopment and South School redevelopment, noting the city uses similar terms and that agreements are reviewed by a committee. "If the improvements weren't the capital investment they said they were, if they didn't have the employees, then we could void this agreement," he said.
Council moved to adopt the emergency clause and the resolution by roll call; the motion passed. Supporters said the agreement preserves the city's upside because tax revenues are delayed rather than permanently waived, and it may tip the balance for developers who are "on the fence" about investing.
The resolution directs the mayor or safety service director to execute a CRA agreement with GHS Leasing LLC and includes an emergency clause to let the agreement take immediate effect. The agreement, as described by the law director in council, includes a modest employment commitment tied to the improvement schedule and oversight that can trigger rescission if the company does not meet its stated obligations.
Next steps: the city will finalize the CRA paperwork and monitor compliance through the city'appointed oversight process described in the resolution and by staff at follow-up reporting.
