Category: Business

WINNSBORO (Feb. 19, 2016) – Emotions ran high Tuesday night as residents spilled out of Town Council chambers and into the hallway for what may have been the last appeal for the life of Mt. Zion.

Leading the charge for demolition was Marie Rosborough, who presented Council with what she said was a survey she conducted last week of neighborhood residents pitted with the question of whether or not they favored a plan to convert the old school building into senior living apartments. All but two respondents, she said, were flatly opposed to the notion.

“We don’t want apartments,” Rosborough said. “It needs to be torn down. We ask Town Council to please close this issue, tear the building down and move on to some more pressing issue you have. You’ve done everything you can do.”

Boyd Brown, who delivered to Council last Friday a letter of intent from developer Rob Coats, did his best to quell fears that Mt. Zion, even if intended for market-level senior living apartments, might end up as a low-income housing project.

“This is not low-income housing. I’ve heard that from about three or four people today,” Brown told Council. “The Banyan Foundation (Coats’s non-profit organization) does do low-income housing projects – fact. This project does not score in the H.U.D. database to qualify for the 4 percent tax credits for low-income housing, nor does it score the other tax credits for low-income housing.”

Mayor Roger Gaddy, however, subjected Brown to intense interrogation on the potential use of federal money on the project. Brown said that, as far as he knew, there would be no federal loans or grants, but that federal and state historic tax credits may be applied.

“One of the Council’s concerns is if there’s any federal money involved,” Gaddy said, “any taxpayer money involved and the market-value apartment – it’s not even zoned for that now – if that were to occur and it not be successful and the federal government wants their money back, then they tell you you’re going to open it up to low-income housing. Council is not interested in even talking to anybody that’s going to use any federal money that’s going to put that neighborhood at risk.”

Brown acknowledged Gaddy’s concerns, and said that federal historic tax credits were different than loans and grants.

“We can do a workshop on federal tax credits and state tax credits,” Brown said, “and explain how that is what is driving all this growth in Columbia and even places like Edgefield and Lake City.”

Dina Borda, an attorney living on Bratton Street, countered Brown’s claims by producing articles of incorporation for a company called The Peaks at Raleigh, Inc., filed in N.C. in 1998. The Peaks later became the Banyan Foundation, she said, and according to the articles was almost exclusively involved in low-income housing projects.

“I am not saying I am against any kind of development,” Borda said. “I would just like to know the scope and method of execution before any contract is executed so that we can make an informed decision as to what’s going to occur. But I am absolutely against low-income housing.”

Brown rebutted later, noting the date (1998) and the name on the articles, but said Coats does represent some of the people named in the articles.

“These article of incorporation are from North Carolina. They are now in Alabama. This is dated,” Brown said. “You can Google search anything and you’re going to find all sorts of information. But I am here to tell you this is not going to be low-income housing. During the due diligence period if you want to go so far as to put that in the contract, if we ever get to that, I’m sure he will be just fine putting it in the contract.”

But Gaddy said a contract means nothing if the federal government is involved.

“I’m telling you the federal government is not going to loan him a dime for this project,” Brown said.

“I don’t want any association, period,” Gaddy replied.

“The council is going to have to have significant reassurance – I mean significant reassurance – that there would not be one iota of a chance and there would be some ramifications liability-wise if that would occur,” Gaddy continued. “I think that certainly is a major concern when you tell us the Banyan Corporation is the one doing it, from my standpoint, and the (articles) say that (low-income housing) is their sole purpose.”

Vickie Dodds, Chairwoman of the Friends of Mt. Zion Institute (FOMZI), said she agreed with opposition to low-income housing. But what she didn’t understand, she said, was the feeling from those who “just want it torn down for the sake of tearing it down.”

Responding to a point made by Faye Johnson, that the buildings were not historic buildings, Dodds said the old school had been approved for submission of placement on the National Historic Register.

“All we have left to do it is finish the editing of the actual application,” Dodds said, “which cannot happen unless they (the Registry) qualify it as permissible to be on there. They consider anything over 50 years to be historic.”

Betty Gutschlag also spoke up for Mt. Zion, saying it was an opportunity for retiring seniors to stay in their community. But when Rosborough spoke up again, she made it clear that it made no difference to the majority of respondents to her survey what type of apartments Banyan has in mind.

“The residents who signed it (her survey) said ‘No, we don’t want Mt. Zion turning into apartments’. No conditions,” Rosborough said.

Rosborough was interrupted by shouts from the back row.

“Do you speak for everybody in the community?” Pelham Lyles asked. “The whole town?”

Gaddy lowered the gavel and Rosborough attempted to continue, but Lyles interrupted again, shouting, “You didn’t put it in everybody’s mailbox!”

When Gaddy called Lyles out of order, she exited the chambers.

“We would hope you would consider what the community wants,” Rosborough finally concluded. “We’ve been talking about this for 15 years, at least. Now you want to add some more of this same over and over. You need to put an end to this because it will never end if you don’t.”

Brown asked Council for 180 days for Coats to perform his due diligence on the project.

“I’m not going to be unrealistic about this,” Brown said. “If there comes a point during that 180-day due diligence period where we just realize it cannot be done, we’re going to call you that day and tell you.”

Gaddy said after the meeting that Council would consider Brown’s request.

 

Walmart was Top Contributor to LOST

WINNSBORO (Feb. 12, 2016) – When Walmart closed its doors for the last time in Winnsboro on Jan. 28, it shut off the spigot for more than just major retail in Fairfield County. As the county’s single largest contributor to the Local Option Sales Tax – the pot of money by which Fairfield County property owners are afforded property tax relief – taxpayers may see the amount of credit they receive on future tax notices diminish.

“With the loss of that revenue (from Walmart), I don’t see how County Council is going to be able to continue to provide that relief,” said Robert Martin, who serves on the Board of Economic Advisors governing the S.C. Revenue and Fiscal Affairs Office. “I don’t see how County Council is going to get around increasing property taxes somewhat next year.”

While the S.C. Department of Revenue would not divulge exactly how much money Walmart contributed to the Local Option Sales Tax (LOST), the big-box retailer was Fairfield County’s largest contributor.

In spite of Martin’s grim forecast, Interim County Administrator Milton Pope said Fairfield County’s losses would be offset somewhat by the fact that Fairfield is a “receiver” county among the counties participating in the property tax relief formula. A portion of the penny sales tax collected by more prosperous counties – “donor” counties – is redistributed among the “receiver” counties annually.

But while funds coming back to Fairfield from donor counties might mitigate some of the fiscal damage, Martin said it would only be a fraction of what Fairfield is losing with the absence of Walmart.

“Some of it would be offset by the donor counties,” Martin said, “but I wouldn’t think it would be that much.”

Fairfield County’s municipalities are also credited with LOST funds that offset their local property taxes. According to the Department of Revenue, 33 percent of the penny tax is distributed to municipalities, based on their population. The remaining 67 percent goes to property tax relief in the unincorporated areas of the county. With the LOST funds diminished, Town council’s may have to rethink their annual budgets.

Ridgeway’s millage rate for the 2015-2016 fiscal year, for example, brought in $44,350 to their meagre general fund budget of $222,840. While Ridgeway is still bolstered by rental properties and an insurance tax, every penny counts.

Don Wood, Winnsboro’s Town Manager, said the loss of Walmart’s contribution would be “significant;” however, how significant remains to be seen. As of last week, Wood was still seeking exact figures from the Department of Revenue.

Walmart also contributed to Winnsboro’s bottom line with utility bills. According to Kathy Belton, Director of Winnsboro’s Finance Department, Walmart paid an approximate average of $23,000 a month in electricity bills, $190-$200 a month in water bills and $1,100 a month in gas bills.

All of that, too, has now dried up.

“That will certainly be a concern,” Winnsboro Mayor Roger Gaddy said. “That’s more than a quarter of a million dollars a year.”

Of course, Gaddy added, Winnsboro purchases electricity from SCE&G before reselling it to customers. So Winnsboro will only be losing its profit margin, not the entire $23,000 a month bundle.

“It will have some impact,” Gaddy said, “but I don’t think it will kill us.”

The ultimate impact of the loss of Walmart won’t be known until August, Pope said, when the final LOST figures come in. As Council begins its budgeting process in the coming months, Pope said the County will have to bear in mind the potential reduction in LOST funds when estimating property tax credits.

And while Pope was reluctant to discuss the potential for a millage increase, he did say that taxpayers would feel some impact.

“The Local Option Sales Tax is a credit on your tax bill that helps to lower taxes on property,” Pope said. “There may not necessarily be an increase, but yes, there is a possibility that folks may not see as much of a credit.”

 

BLYTHEWOOD (Jan. 28, 2016) – After the Board of Architecture Review unanimously approved a Certificate of Appropriateness (COA) last week for The Pointe, a 56-unit apartment complex proposed for Main Street in downtown Blythewood, the Richland County 9-1-1 addressing system required that the project’s official name to be changed to Just the Pointe since a nearby street is named Blythewood Pointe.

Prior to granting the COA to the project, the BAR unanimously granted the developer, Prestwick Development LLC, 16 variances, including a request to omit the Town’s requirement that principal building facades provide a stoop or porch with a minimum height of 24-inches for all first-floor residential units. The Board did not omit the height requirement, but amended it to allow Prestwick to lower the height of the stoops on the principal building to 12 inches. The Board also allowed Prestwick to lower the required 48-inch elevation height on the building.

The developers of the project told the Board last November they planned to install a chain-link fence on two sides and back of the property. At the December meeting the Board asked that the fence be changed to a wrought iron or similar decorative material. But at the January meeting, the project’s architect, Robert Byington, told the Board the owner had decided not to install a fence at all since one was not required by code.

There was, however, some give and take between the Board and Prestwick in the finished design.

“We wanted the developer to upgrade the building to be more than what was proposed,” Board chairman Michael Langston told The Voice following the December meeting. “I’ve been on the phone to them the last couple of weeks to get them (Prestwick) to come up to our codes instead of us giving them variances. They have met us about half way.”

At that meeting, the Board negotiated for Prestwick to add several design changes to the window and entrance openings on the principal building to provide for a more upscale appearance on the street side.

No one signed up to address the architectural requirements during public comment time on Tuesday evening. A representative of the company said he expected that the project is on track for completion by the end of the year.

 

WINNSBORO (Jan. 22, 2016) – With the announcement last week that Wal-Mart Stores, Inc. plans to shutter 154 stores nationwide, including its Walmart Express store at 721 Highway 321 Bypass S. in Winnsboro, local leaders have been scrambling for a plan to fill the enormous retail gap that will be left by the closing, or perhaps delay or even hold off for good the Jan. 28 closing date.

“The thing that is paramount in everyone’s mind is getting those people placed who are losing these jobs,” Terry Vickers, President of the Fairfield County Chamber of Commerce said.

Brian Nick, Senior Director of Corporate Communications at Wal-Mart Stores, Inc. said approximately 300 employees would be affected by the Winnsboro closing. Employees would be paid 60 days beyond Feb. 10, Nick said. Employees who qualify for severance pay (full- and part-time employees who have been with the company for more than one year) may begin receiving that pay after the 60 days has expired, he said. Some employees may be relocated to other stores, Nick said.

Downtown Renaissance?

Big box retailers can have a devastating effect on Main Street, U.S.A., particularly in small, rural communities.

According to a 2010 study by the Center for Community Planning and Development at Hunter College in New York, Walmart kills three local jobs for every two jobs it creates. A 2004 study by Pennsylvania State University found that U.S. counties with a Walmart suffer an increase in poverty over time compared to counties without a Walmart. And a 1997 study by Iowa State University found that small towns can lose half of their retail trade within 10 years of a Walmart opening in their community.

When Walmart opened its doors in Winnsboro in 1998, it quickly became the biggest kid on the block, drawing even more traffic away from Congress Street and onto the 321 Bypass. With its closing, a retail void opens that Vickers sees as an opportunity for downtown.

Bringing downtown back to life has long been a goal of the Chamber. Now there is considerable impetus to do so. For the transition to be successful, both merchants and consumers will have to adapt.

“We’re looking for things to service us when we lose Walmart,” Vickers said. “We’ve talked to the hardware store (Winnsboro Builders Supply, 340 S. Vanderhorst St.) and the Butcher’s Block (324 S. Congress St.) about the fact that they could see more business. We’ve asked them to take a look at their inventory and keep stock of what people will be looking for.

“The main thing is for our citizens to look here first,” Vickers continued. “And if there’s something that you don’t like about a business, make suggestions.”

Downtown merchants, Vickers said, may have to rethink how they have traditionally done business. In Winnsboro, she said, practically everything except the CVS Pharmacy and the Bi-Lo closes shop by 6 p.m. And some still observe that old Southern tradition of closing at lunch on Wednesdays.

“We’re definitely going to need to look at store business hours,” she said. “If a business is going to be competitive, they have to structure their hours so they are convenient to customers.”

Businesses may also have to consider adding staff, she said, and breaking them up into shifts in order to cater to customers who can only shop after 6 p.m.

A United Front

Filling the gap left by Walmart cannot be the Chamber’s cross to bear alone. If downtown is truly going to be the next destination for Winnsboro shoppers, it is going to take a joint effort between merchants, the Chamber, the Town of Winnsboro and County Council. At the very least.

For starters, Vickers said, downtown is going to have to look and feel like the place to be. Toward that end, she said, additional lighting may be necessary, particularly well-lighted parking areas. An expanded police presence also wouldn’t hurt, “so people can feel safe and relaxed shopping downtown after hours,” Vickers said.

The Town has done an excellent job, Vickers said, on downtown’s landscaping, and she hopes that can be expanded in the future. The walking trail on Mt. Zion Green is paved now, she said, and the growing monument park there has added an attraction for the downtown area.

During Tuesday night’s Town Council meeting, Winnsboro Mayor Roger Gaddy addressed the loss of Walmart in his closing remarks.

“It certainly will have a detrimental impact on the quality of life here in Fairfield County,” Gaddy said. “Hopefully we will be able to find some retailers to come in and fill the gap and the large void that Walmart is leaving us.”

After the meeting, Gaddy told The Voice that additional monetary support for the Chamber may be one of the things Council looks at when budget talks ramp up in March.

“I’m sure that our downtown development folks will be talking with the merchants to try to see if we can help them in any way to enhance their business,” Gaddy added.

The County’s role, meanwhile, remains unclear. Vickers said she had not yet spoken with the County, and our phone calls to Chairwoman Carolyn Robinson (District 2) were not returned at press time.

Can it be Undone?

The Winnsboro location is one of only three S.C. Walmart stores to call it quits by the end of the month. Gray Court in Laurens County, and Pacolet in Spartanburg County are the other two. Worldwide, 269 locations are going out of business, putting 10,000 out of work in the U.S. and 16,000 across the globe.

State Sen. Creighton Coleman (D-17) told The Voice this week that he had spoken with Gov. Nikki Haley and S.C. Secretary of Commerce Bobby Hitt about a possible plan of action.

“We’re meeting with Wal-Mart next week,” Coleman said, “to see if they may be willing to reverse their decision. And if not, we want to do everything we can to get people who will be losing their jobs into new positions.”

If a stay of execution is off the table, Coleman said the next concern was the physical building itself.

“Will they let someone else come in and use it,” Coleman said, “or will they tie it up and let it remain empty?”

And if the commercial winds blow back toward downtown, Coleman said he would have to have discussions with Hitt to determine if there were any state money that could help kick-start Congress Street.

Lemons to Lemonade

As she said in her letter to the editor this week (page 2), Vickers hopes to turn the sour news of the Walmart closing into a refreshing future for downtown. And she is confident that the building blocks are in place.

“We have the makings,” Vickers said. “We have two drug stores (CVS on the Bypass and Price’s at 110 S. Congress St.) and Bi-Lo. We want to talk to the manager of our farmers market to see if we can have a storefront where people can get fresh vegetables. Winnsboro Builders Supply carries everything Walmart did and more.”

As the process takes its first baby steps, Vickers said the Chamber is already courting grocery store chains to gauge their interest in Winnsboro. One of the community’s more immediate needs, she said, is a hunting and fishing supply outlet. Whether that is something that Builders Supply expands to take on – or, as Gaddy suggested, something Northside Feed and Seed tackles – remains to be seen.

The one thing that is certain is that it won’t happen overnight. There may be slim pickin’s for Winnsboro consumers for some months to come.

“The kicker at first is just going to be to keep the lights on and the doors open later,” Vickers said.