Sumter County approves FILOT tax agreement for Runnymede Solar

Sumter County Council voted unanimously on Oct. 11 to adopt Ordinance #21-965, authorizing a Fee-In-Lieu-Of-Ad Valorem Taxes (FILOT) agreement with Runnymede Solar, LLC (formerly called Project Honey).

County Attorney Johnathan Bryan presented the ordinance on third reading and described the core fiscal incentive: the agreement provides a Special Source Revenue Credit (SSRC) that yields a Net FILOT payment equal to $2,000 per megawatt (alternating current) of project capacity, for a 30-year term for each phase unless the project is not commenced, is terminated, or extended as set out in the fee agreement. The SSRC is reflected on FILOT invoices so the annual payment is equal to the Net FILOT Payment.

The ordinance also addresses scenarios in which the calculated FILOT payment would fall below the Net FILOT payment; if a court determines a negative SSRC is impermissible, the sponsor and affiliates would not receive the SSRC for that year and would make an additional payment equal to the difference. The agreement contains a reformation clause allowing automatic adjustment if the Net FILOT Payment is declared invalid or unenforceable.

Vice Chairman James R. Byrd moved adoption; Councilman Artie Baker seconded. The motion carried unanimously and council directed the chairman, clerk and staff to execute and deliver the ordinance as presented.

Why it matters: the FILOT agreement is a financial incentive intended to support the development of a utility-scale solar project in Sumter County. The specific Net FILOT formula ($2,000 per megawatt) and the 30-year term are material fiscal details for county revenue projections and long-term tax arrangements.