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York County Council approves fee‑in‑lieu agreement for Octapharma after debate over school revenue
Summary
York County Council on July 8 approved a fee‑in‑lieu of ad valorem tax (FILo) and special source revenue credit agreement for the Octapharma project after heated debate about directing portions of the revenue to Rock Hill School District, an amendment to reallocate funds failed and the main motion carried.
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The York County Council voted July 8 to approve an ordinance authorizing a fee‑in‑lieu of ad valorem tax (FILo) and special source revenue credit agreement for the project identified in the meeting as Project Palmetto Rock (Octapharma), after a lengthy debate about how the resulting revenue should be distributed.
Council members framed the vote as a choice between securing a large life‑sciences employer for the county and preserving school funding for Rock Hill School District. "This project is a great fit with our community," the Chair said in opening remarks, adding that the question before the council was how to allocate revenue from any FILo deal rather than whether to support the company.
Councilman Roddy offered the main motion to approve the ordinance as presented with amendments that included an effective date and language limiting the agreement to the named company. Roddy said the FILo package, as drafted, would yield substantial long‑term revenue and that the county could use the economic opportunity to address local priorities. Councilman Roddy moved the ordinance forward; the motion was seconded and debated.
Council member Miss Odette offered an amendment to change the revenue distribution so that, based on the amendment's estimates, roughly $7,966,332.57 from Rock Hill and $5,793,696.42 from York County would be allocated to the Rock Hill School District (a combined, estimated $13,760,028.99) for the life of the agreement. Miss Odette and a staff presenter also cited larger lifetime projections under the FILo/SSRC structure, saying Rock Hill School District would receive an estimated $238,265,765 under one proposed allocation scenario.
Opponents of the amendment said the change had not been documented in writing by Rock Hill city officials and raised concerns about process, precedent and fairness to other school districts. One council member said he had not received official written confirmation that Rock Hill would rescind a June 22 resolution that, in the member's view, complicated changes to the allocations. The county attorney told the council she had not received any written rescission as of the meeting.
Speakers on both sides emphasized support for the company while differing on whether the council should redirect FILo/SSRC funds to address school capital needs now or wait to establish a broader policy. "If we don't act, we are going to be looking at impact fees or increased taxes," the Chair said in arguing that using the project to shore up school funding was a viable option. Other members urged caution about setting a precedent that could prompt other districts to expect similar reallocations.
The council voted on Miss Odette's amendment first; the amendment failed. The main motion to approve the ordinance then passed by voice/hand vote after the Chair called for the question; the transcript records the motion as carrying with opposition noted during the roll call sequence. The council did not go into executive session for legal advice after a motion to do so failed to receive a second.
Meeting presenters and council members cited several headline figures during debate: staff and members referenced estimated allocations of $7,966,332.57 (Rock Hill portion) and $5,793,696.42 (York County portion) under Miss Odette's amendment; an estimated $238,265,765 figure was cited as a lifetime allocation to the Rock Hill School District under an amended distribution; and council discussion placed long‑term FILo/SSRC totals for Rock Hill and related economic development funds in the tens of millions over decades. The transcript contains multiple, inconsistent verbal renderings of totals and multi‑decade sums; the council did not place a written supplemental agreement from the city of Rock Hill into the meeting record.
The council adjourned immediately after the vote. The ordinance will take effect according to the terms in the approved motion; the council record at the meeting did not produce a written rescission from the City of Rock Hill or a formal, signed amendment on the public record during the session.
What happens next: the approved ordinance as voted July 8 sets the FILo and SSRC provisions in motion and the county will proceed with implementing the approved agreement per its terms. County staff and legal counsel and, where required, Rock Hill city officials will need to complete any follow‑up documentation, and council members said they expect further implementation steps and intergovernmental coordination to follow.

