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  • Blythewood’s Trane plant to hire 700

    BLYTHEWOOD – The South Carolina Department of Employment and Workforce (SCDEW) will be hiring ‘on the spot’ for 70 positions during a job fair it is sponsoring for Trane at Doko Manor, from 1 – 7 p.m. on Wednesday, Sept 12.

    Wendy Hamilton, Midlands Business Consultant for SCDEW, said the hiring will be the first phase of 700 new hires over the next six months for Trane’s newly expanded plant in Blythewood.

    “They will be hiring for multiple positions, primarily maintenance techs,” Hamilton said.

    While Hamilton said she did not have the final range of pay for the positions, she said the jobs are all well-paying jobs.

    “All of Trane’s corporate Human Resources Department staff will be on site to interview, make offers and hire right then and there,” Hamilton said. “It’s very important for applicants to bring an updated resume with them.”

    The first phase of 70 hires will be followed by hiring the bulk of the 700 open positions. Then another 70 will be hired in the final phase. All three phases are expected to be completed within six months Hamilton said.

    “The company recently completed a 1,000,000 square foot expansion, the largest expansion it has ever made,” Hamilton said. “It’s a great opportunity for both Fairfield and Blythewood.”

  • Smith outlines new admin building costs

    Winnsboro – Fairfield County isn’t promising that it’s a magic pill.

    But local leaders do think the plan to repurpose the old Mt. Zion Institute site in Winnsboro into a new county administration building is as innovative as it is necessary.

    “My biggest concern is if this project doesn’t go forward, there’s something that’s going to have to happen to resolve the issues with the current building,” County Chairman Billy Smith said Monday. “It’s got some problems I probably shouldn’t even tell you about.”

    Smith estimates renovating the existing county building would cost at least $3 million. It would be ineligible for the tax credits for which the Mt. Zion site qualifies.

    And Fairfield County’s borrowing capacity is virtually zero due to a $24 million bond issue it’s repaying. Smith added that other unspecified financial decisions by previous council members have further financially handcuffed the county.

    “It boxed us in, in terms of what we can and can’t do,” he said. “This is a creative model that Fairfield County could probably win some type of award for. In no other way would this be feasible.”

    Otherwise, county voters would have to “go vote on a referendum to raise their own taxes,” Smith added.

    The plan to repurpose the Mt. Zion institute costs about $11.4 million, but a series of tax credits and private equity would cover more than half the cost.

    Smith said interest free county lease payments would cover the rest.

    Rory Dowling with 1st & Main, a Durham, North Carolina firm working with the county, outlined the two-part tax credit proposal at the Aug. 13 council meeting.

    First, he said, the firm has already applied for state and federal historic tax credits.

    The plan also calls for additional New Market Tax Credits. Dowling said 1st & Main has already received a letter of interest from the Community Affordable Housing Equity Corporation, or CAHEC, to provide the allocation.

    Together the credits total $5.4 million. Dowling said repurposing Mt. Zion is a preferred project for CAHEC, but not a guarantee.

    “It’s a very good sign, we hope to know more in October when some of these (Community Development Entities) receive some feedback on a federal level on whether they can expect some level of credits,” Dowling said regarding CAHEC’s interest. “We take these tax credits and sell them to a third party at a discount, which then finances the project.”

    An additional $1.1 million in equity has been pledged by 1st & Main, leaving about $4.5 million, totaling $11 million.

    “We do expect that to come down. This is a starting number,” Dowling said. “By our modeling, we think this is going to save the county $3.5 million over a 20-year period. It significantly reduces your payments.”

    As it stands, a majority of council supports the plan. The council voted 4-1 for first reading of an ordinance authorizing construction of a new administration building, as well as a lease agreement associated with the project.

    Council members Dan Ruff and Douglas Pauley abstained, each signaling they wanted more information before committing to a vote. Councilman Mikel Trapp opposed the ordinance.

    Economic development has become the rallying cry for those supporting the Mt. Zion plan. Several residents speaking during public input last Monday night expressed that support by invoking the looming loss of 126 jobs at Element Electronics.

    Those who oppose the plans do so for various reasons.

    Some cite a confederate monument that stands on the far corner of the green as the reason they do not want Mt. Zion renovated.

    Others cite cost.

    County resident Jana Childers said she prefers repurposing another existing building, such as the Wal-Mart that recently shut down. But that building is outside of the downtown.

    Smith said he understands the criticisms of investing in government owned property.

    But he also noted that the county’s approximately 120 employees must eat and shop as well, and nesting the new county building close to shops and restaurants does provide a benefit.

    “To have those folks be in such close distance where they could walk to (downtown businesses,) it would be huge for a town like Winnsboro,” Smith said. “It’s a hassle to get into your car and drive somewhere.”

    As envisioned, the proposed 45,000-square-foot building would more than double the county’s existing 21,000-square-foot structure.

    Administrative offices, the sheriff’s office, a daycare center and parks and recreation with a new gym would move into the new building. County council chambers would move there as well.

    Second reading is scheduled for the council’s Aug. 27 meeting. A public hearing on the building proposal is likely.

  • Fairfield asks feds to exempt Element

    WINNSBORO – Fairfield County leaders want the federal government to waive tariffs impacting Element Electronics, tariffs the TV assembler says will wipe out 126 jobs, essentially shuttering the Winnsboro plant.

    However, a nonprofit geared toward the manufacturing sector disputes whether tariffs and trade wars are even to blame.

    By unanimous vote, Fairfield County Council swiftly approved a resolution on Monday that asks the Trump Administration to spare Element from the 25 percent tax set to take effect.

    “Fairfield County is ill-equipped to withstand the further loss of jobs and economic investment due to the recent events surrounding the closure of the V.C. Summer Nuclear Plant expansion project which resulted in the loss of over 5,000 local jobs and billions of dollars in investment that would have positively impacted Fairfield County and its citizens,” the resolution states.

    Element initially accepted $1.3 million in tax credits and pledged to create up to 500 jobs by the end of 2018, according to an August 2013 news release from the S.C. Department of Commerce announcing Element’s plans to open a Winnsboro plant.

    This past spring, a 10 percent tariff on Chinese goods took effect, prompting Element and Fairfield County to modify the incentive agreement by reducing incentive levels.

    If the 25 percent tariff takes effect, Element has said it would be forced to lay off most of its workforce. Although Element is based in the U.S., its televisions consist of components imported from China.

    President Donald J. Trump has taken aim at China, specifically, in tariff-related tweets to the commander in chief’s official Twitter page.

    His most recent tweet posted Aug. 5, two days before the Element announcement, said tariffs would build economic prosperity.

    “Tariffs are working big time. Every country on earth [sic] wants to take wealth out of the U.S., always to our detriment,” the tweet stated. “I say, as they come, Tax [sic] them. If they don’t want to be taxed, let them make or build the product in the U.S. In either event, it means jobs and great wealth.”

    While losing 126 jobs is regrettable, unfair trade with China has been much more punitive to South Carolina workers, according to the Alliance for American Manufacturing.

    The alliance further claims in an Aug. 8 op-ed to its website that the tariff announcement is merely a convenient way to shift blame.

    “Element says it is seeking to have ‘our parts removed from the tariff list’ in order to maintain its taxpayer-funded operations in South Carolina,” the alliance op-ed states. “But nothing has changed — Element still wants the government pick up the tab for its American facility while staying dependent on China.”

    In support of its position, the alliance cites a recent study by the Economic Policy Institute, an independent think tank many conservative websites criticize as affiliated with the labor movement and left-wing policies.

    According to the study, unfair trade with China displaced 50,700 South Carolina workers between 2001 and 2015.

    The study ranked South Carolina 13th in jobs lost by percentage of workforce (2.58 percent), though it didn’t break down job losses by county.

    “Growing U.S. trade deficits with China have reduced demand for goods produced in every region of the United States and led to job displacement in all 50 states and the District of Columbia,” the study states.

    This isn’t the first time the Alliance for American Manufacturing has clashed with Element.

    In 2014, the alliance filed a complaint with the Federal Trade Commission, claiming Element was fraudulently stating its TVs were made in the U.S. when they were pre-assembled in China and shipped here.

    A settlement was later reached when Element agreed to change its labeling to “assembled in the U.S.,” a moniker prominently displayed today on its website.

    At Monday night’s council meeting, however, Fairfield County residents in attendance hardly cared about Trump tweets, trade wars or false advertisement claims.

    Their concern was simple. Jobs.

    In addition to Element, another 300 jobs evaporated when the Winnsboro Wal-Mart at 721 Highway 321 Bypass shut down in 2016.

    Fairfield Memorial Hospital is shutting down later this year. And, of course, there’s V.C. Summer.

    Clarence Gilbert of Winnsboro was among the dozen residents taking to the podium, urging council members to take action to save Element.

    “It is time for us to drop that ‘oh well’ attitude, to stand up for our county against the potential job losses,” Gilbert said. “You can only poke a cat so long before it can scratch you. Let’s start scratching. Let’s save Element.”

    Others used the Element news to lobby for the county to approve repurposing the Mt. Zion Institute building in Winnsboro into a new county administrative building to spur economic activity downtown.
    Terry Vickers, president and CEO of the Fairfield County Chamber of Commerce, was among them.

    “I’ve been giving plenty of interviews too. It is poor Winnsboro, poor Winnsboro,” Vickers said. “We are not poor Winnsboro and we are not poor Fairfield County. Please don’t let one item [Mt. Zion] be divisive in this community.”

  • Council OKs first Mt. Zion vote

    Proposed Mt. Zion renovation

    WINNSBORO – With Fairfield County stung by massive job losses and another 120 positions expected to vanish, development of a new $11.4 million county administration building aims to ease some of that pain.

    Supporters also note tax credits would finance the majority of costs of renovating the Mt. Zion Institute site in Winnsboro, lowering the county’s costs to about $5M.

    But a large number some residents opposing the plans fear it will threaten the property’s historical character and turn the area into a traffic nightmare.

    “I applaud council finding alternative ways to funding this county council building. However this project is wrought with controversy,” said Ridgeway resident Shirley Green. “Let’s not court controversy. It’s the kind of controversy that pits our citizens against each other. An administrative building is not an economic driver.”

    Winnsboro resident Bill Haslett, however, said revitalizing the Mt. Zion property would unite the county, not divide it.

    “Fairfield County is not going to grow unless we take down the dividing line between Zion Hill and Mount Zion. Mt. Zion needs to be redeveloped,” he said. “We’ve had nothing but negative news in this county for the past six months and I’m tired of it. We need some positive news instead of people bickering back and forth.”

    On Monday, Fairfield County Council voted 4-1 for first reading of an ordinance authorizing development of a new administration building, as well as a lease agreement associated with the project.

    Councilman Mikel Trapp cast the lone dissenting vote. Council members Dan Ruff and Douglas Pauley abstained.

    Trapp didn’t specifically why he voted against the ordinance, though during discussion of the proposed measure, he raised concerns about revenue sources and costs, which are not finite.

    “Once that number changes, we’ll have to revote,” Trapp said.

    Council Chairman Billy Smith said the county is “in the driver’s seat,” noting that the builder faces the most risk.

    “I think the best way to structure it is to put the contractor at risk, not the county,” Smith said. “We’ve got two more readings to flush this out. We all know the first reading is procedural.”

    Both Ruff and Pauley said they wanted more information before casting a vote.

    “I just need a little more time to get information and feedback,” Ruff said.

    Pauley asked for a lot more.

    “The vote concerning the project is a very important vote and a vote I would not take lightly,” he said. “My reason for abstaining tonight, there are a few questions I’ll present to the county administrator before I make my decision.”

    Pauley requested detailed information about the county’s outstanding debts, as well as alternative sites for the administration building.

    “We can get that information together for you,” County Administrator Jason Taylor said.

    Two more readings are required before the deal becomes official.

    Rory Dowling with 1st & Main, a Durham, North Carolina firm working with the county, hopes that will be soon.

    Dowling said he hopes an agreement can be finalized within 30 days, and to apply for a building permit by early 2019. The goal, he said, is to begin construction within 10 months, with a grand opening by April 2020.

    As for spurring economic development, Dowling noted that the building would bring about 120 employees daily to downtown Winnsboro.

    “When you have 120 people within walking distance, it helps keep the lights on at some of these establishments,” he said.

    If constructed, the four-story structure would include 45,000 square feet of space, more than doubling the existing 21,000-square-foot administration building at 350 Columbia Road.

    The new structure would house administrative offices, the sheriff’s office, a daycare center, and parks and recreation with a new gym. County council chambers would also move to the new building, making use of the old auditorium.

    About half of the $11.5 project would come from a series of state and federal historic tax credits totaling $5.4 million.

    Another $4.5 million would come in the form of a construction loan, as well as $1.1 million in equity from money 1st and Main would raise itself.

    Dowling said he felt confident the tax credits would be awarded, but acknowledged there aren’t any guarantees.

    “This is a tax credit program that’s geared toward a low income tax tract, which this is,” he said. “We hope to know more in October when some of these [organizations] receive some feedback on a federal level on whether they can expect some level of credits.”

    This article was updated 8/20/18 at 3:06 p.m. to correct the county’s cost from $5K to $5M. 

  • Local man charged with child porn

    Johnson

    COLUMBIA – On Wednesday, Aug. 15,  South Carolina Attorney General Alan Wilson announced the arrest of William Edward Johnson, 34, of Columbia, near Lake Carolina on six charges connected to the sexual exploitation of a minor.

    Investigators state Johnson possessed multiple files of child pornography.

    Johnson was arrested on August 14, 2018. He is charged with six counts of sexual exploitation of a minor, third degree (§16-15-410), a felony offense punishable by up to ten years imprisonment on each count.

    The case will be prosecuted by the Attorney General’s Office.

    Updated 8.16.18 at 7:58 pm – Aug. 22 changed to Aug. 165

  • Blythewood BZA denies Taco Bell variance

    BLYTHEWOOD – Plans for a Taco Bell with a drive-thru to come to Blythewood Road were doused Monday evening when the Blythewood Board of Zoning Appeals (BZA) denied the company a variance request to enlarge the usable area of the property the fast food restaurant proposed to build on.

    The applicant, BWL Holdings, LLC, represented by Cason Development Group, requested a variance to reduce the necessary buffer transition yard on each side of a lot located at 209 Blythewood Road in the Town Center across from the Waffle House.

    Because the 130 foot x 220 foot property is not wide enough to accommodate the building and a drive thru lane, the variance was requested to reduce the buffer transition yard on the western side of the lot to 3.4 feet and on the eastern side to four feet.

    The Town requires a buffer between adjoining commercially zoned lots in the Town Center District to be a minimum of 10 feet in width, or 7 feet if a wall, fence or berm is used between adjoining properties on both sides and to the rear.

    For a variance to be granted, according to Town ordinance all of the following findings and conclusions in a written order:

    (a)  There are extraordinary and exceptional conditions pertaining to a particular piece of property;

    (b) These conditions do not generally apply to other property in the vicinity;

    (c)  Because of these conditions, the application of the chapter to a particular piece of property would effectively prohibit or unreasonably restrict utilization of the property;

    (d)  The authorization of the variance will not be a substantial detriment to adjacent property or to public good, and the character of the district will not be harmed by the granting of the variance; and

    (e) The effect of the variance would not allow the establishment of a use not otherwise permitted in the zoning district; would not extend physically a nonconforming use of the land; would not change the zoning district boundaries shown on the official zoning map.

    Cason spoke on behalf of granting the variance indicating they had to “skinny up the site plan” due to the dimensions of the site.  One of his suggestions to enhance the narrow buffer zone was a ‘living fence.’  He had some examples to share of hedge plantings used to create borders.

    “This will most likely come back up again,” Darren Rhodes, with Coldwell Banker and the realtor for the sale of the property, said. “It is a unique challenge to fit something on that site,” he told the BZA members.

    Marie Berry said she is a co-owner of the property and represents the other three owners, all of whom she said were longtime residents of Blythewood.

    “It would be an attractive addition to the community and economic development for the community,” Berry said.

    Shelia Finkel, who along with her husband own the dental practice located on the property adjoining the east side of the site, reminded the Board that any decision they make now will come up again.

    “Whatever decision you make will be for all of the town,” she said.

    Stan Harpe, who said he owned the parcel to the west of the property, said the site was too small for the use.

    “I went through the zoning process before trying to get Walgreens,” Harpe said.

    After closing the public hearing, BZA Chair Pat Littlejohn read each of the five findings required to be met for a variance to be granted.

    “There are lots of narrow lots, and shoehorning in this sets a precedent. This would be over-reach,” Board member Ray Fantone said.  He asked Cason if the variance requester had tried to purchase land from the properties on either side.

    “Yes, they have not been able to get land from either side,” Cason said.

    Board member Derreck Pugh commented “that the variance brought up the same issues and they should keep in mind what the Town did before.”

    “What if the live fence dies?  What will we be looking at?” Board member Sharron Pickle asked.

    Board member Marlon Hinds also had some concern about the fence and questioned what if it would change down the line.

    “I don’t feel this is a special case. Not unique,” Hinds said.

    Hinds made a motion to deny the request for a variance to reduce the buffer transition yards between adjoining commercially zoned lots at 209 Blythewood Road for a proposed commercial use. The motion was seconded by Fantone and the Board voted unanimously to deny the request.

    Board member Tom Utroska was not present.

  • Council defunds RWPD and Culp

    RIDGEWAY – After failing on Aug. 9, to finalize a vote to defund its Police Department, the Ridgeway Town Council held a special meeting Saturday, Aug. 11, at 10 am to pass the vote.

    Following executive session at the Aug. 9 meeting, Councilman Dan Martin moved to ‘implement a reduction in force by eliminating funding for the town’s police department personnel, non-personnel and capital expenditures effective Friday, Aug. 10, at 9:01 a.m.”

    Mayor Heath Cookendorfer seconded the motion.

    Before council could vote, however, Councilman Don Prioleau made what he called a substitute motion to call a town hall meeting before defunding the police department. Council, in its confusion, then stumbled into increasingly familiar territory – another parliamentary faux pas.

    “I would call for a town hall meeting where the citizens of the town would be able to help and guide council which way we might proceed,” Prioleau said. “So I offer a substitute motion that would have a town hall meeting for deciding on the police department.”

    A lengthy discussion then ensued on which motion to vote on first and whether or not to vote on the first (Martin’s) motion at all after the second motion failed 3-1.

    At one point, a woman from the audience walked up to the council table, interrupted proceedings and addressed the mayor and council without identifying herself or asking permission to speak.

    “I’m very concerned about something that happened while you all were in executive session,” the woman said as she laid a paper on the council table and pushed it toward the mayor and Prioleau. She then walked back to her seat to the bewilderment of council and the audience.

    Then, without comment, Cookendorfer and Prioleau, returned to bantering over whether to vote on the first motion.

    Finally, Cookendorfer warily accepted Prioleau’s parliamentary tact that the first motion actually won without a vote since the second motion failed.

    Councilman Dan Martin objected to that reasoning, insisting that the first motion still needed a vote. Prioleau prevailed, however, and Cookendorfer announced that the first motion, to defund the police department, passed, 3-1 without a vote.

    Martin then made a second motion to authorize the mayor to sign an agreement of understanding with the Fairfield County Sheriff’s Department to provide law enforcement for Ridgeway.

    “What we’re doing,” Martin said, “is hiring off-duty Fairfield County Sheriff’s deputies to come and patrol our town for however many hours we contract an officer to be here. We will have that officer here to protect the town, and he will not leave during the time he’s on duty,” Martin said.

    “When the contracted officer is not on duty, we will still have the same round-the-clock service from the Sheriff’s department we’ve always had, just like when Chief Culp was not on duty. We still had 24-hour protection provided by the Fairfield County Sheriff’s Department. Plus we’ll have a contracted officer five days a week here in town.

    Councilman Rufus Jones added that Culp would receive three weeks’ pay plus pay for three weeks of vacation upon separation from the Town.

    “It’s a bad day in Ridgeway!” former mayor Charlene Herring, a Culp supporter, shouted out immediately after council voted to adjourn the meeting. She continued to talk loudly as the audience dispersed, but what she said was not clear.

    Armed with advice from the S.C. Municipal Association that the non-vote for the first motion, to defund the police department, was just that – a non-vote, Cookendorfer, on Friday, called a special meeting for Saturday, at which time council voted 3-1 to pass the motion to defund the police department, effectively immediately.

    NOTE: Following the Aug. 9 meeting, The Voice obtained the handwritten note the unidentified woman left on the dias. Titled ‘Evidence of Collusion,’ it stated that Councilman Rufus Jones winked his eye at a person the woman said is well known to be obsessed with causing harm to the chief of police.

    Asked about the wink, Jones said it was a common practice for him to smile and wink at people he knows.

    “Everyone who knows me knows I do that,” Jones said.

  • Hilton’s Home 2 Suites eyes Blythewood site

    A new hotel brings site plans to Blythewood Planning commission.

    BLYTHEWOOD – Hilton Hotel’s Home 2 Suites is considering putting down roots in Blythewood. The hotel’s owners are seeking permission from the Town to build a four-story, 88-bed hotel building on a 1.93 acre vacant lot adjacent to the I-77 ramp. But without considerable adjustments to the entrance to the property, the 55,672 square foot building would have no direct access to Creech Road.

    The parcel is tucked between I-77, the Holiday Inn Express & Suite, Hardees and San Jose’s Mexican restaurant. A site map shows access to the parcel off Creech Road across from the west side of the Sharpe BP Service Station.

    But that access doesn’t meet SCDOT standards.

    Civil Engineer Jeff Carter, of Georgia-based Carter Engineering Consultants, presented Paragon Hotels’ plans to the Blythewood Planning Commission Mon­day night.

    Consensus of the Commission members was that it is a good project for Blythewood but the access is problematic.

    Commission Chair Donald Brock ad­dressed the lack of a traffic study and said traffic access to the site presents problems.

    “Ingress and egress to the site is a prob­lem,” he said. “I see that the right-in and right-out onto Creech Road is going to send everyone down a dead end street. What are drivers supposed to do when they get there and have no place to go?” Brock asked.

    Town Administrator Brian Cook said staff has been working with SCDOT on this issue, and that SCDOT has conditionally granted access to the site using SCDOT’s right-of-way.

    “The existing service road would have to be removed and replaced to enable two-way traffic,” Cook told the commissioners. “The access road would need to be a mini­mum of 24’ wide with an appropriately designed connection to Creech Road so as not to negatively impact Creech Road or Blythewood Road which is directly adja­cent,” Cook said.

    Cook said the design would need to in­clude proper radii and an approximate median enforcement to satisfy the SCDOT requirement that this access be a right-in, right-out due to the proximity to Bly­thewood Road.

    Carter expressed his concern that even after doing a traffic study the options would still be very limited and driven by what SCDOT would allow. He said he felt that the developer would agree to install­ing a turnaround at the end of Creech Road where it dead ends.

    Councilman Rick McKenrick asked Carter whether the hotel owners were considering buying additional lots around the site to improve the traffic pattern. Carter said he felt they are still considering that possibility.

    Councilman Marcus Taylor cited the ex­treme traffic problems that already exist on Blythewood Road during high traffic times and said this would significantly add to the problem.

    After lengthy debate and persistent ad­monition by Brock that even conditional approval would not be the best way to proceed, a motion was made to defer the agenda item until the Sept. 4 Planning Commission meeting. The motion was seconded and all council members voted in favor of deferral.

    Cook told the commissioners that he would continue to work with SCDOT and the engineers to address the traffic pattern concerns.

    Blythewood Consultant Michael Criss announced that his services to the Town would end on Aug. 31, 2018 and expressed that he had enjoyed working with the Commission members.

  • FCSD Board approves $2.2M loan

    WINNSBORO – Fairfield County school board members are taking out another line of credit, one of many the district has sought to help pay for building and facilities projects.

    At its July meeting, the board voted 6-1 to borrow $2.2 million to fund a variety of building and facilities projects. Board member Paul Hartman cast the lone dis­senting vote.

    Hartman asked for the record to show that she favored using alternative funding sources as op­posed to seeking a loan.

    “I feel like we should use the re­mainder of what’s left over from the calendar year, finishing up than borrowing money,” she said.

    Superintendent Dr. J.R. Green said the bond was necessary be­cause the district has recurring capital needs.

    “You still have to put roofs on buildings. Air conditioners do not last forever,” Green said. “We’ve not had one single year where we’ve not done things to upgrade our facilities. We’re in a much bet­ter place but we aren’t where we need to be yet.”

    Borrowing has become a com­mon theme as of late for the Fair­field County School District.

    In June, the board approved a $5.4 million loan in the form of a tax anticipation note, a short-term

    loan to help the district cover temporary shortfalls until tax revenue starts rolling in beginning in January 2019.

    The board took out a similar note worth $5 million in 2017, according to district documents.

    Two years ago, they approved a $2 mil­lion general obligation bond to renovate Kelly Miller Elementary School.

    And in 2013, the board approved a $20 million bond to help build a new career center, resulting in a tax increase from 24 mils up to 34 mils that the district, at the time, said would only be for two years.

    The loan included $15.6 million for the building, with the remaining $4.4 mil­lion diverted to finance other facility and equipment needs in the district.

    All told, the sampling of loans totals about $29.6 million, according to district documents and reporting by The Voice.

    The most recently approved bond in­cludes a laundry list of various facility projects, with line items ranging from $16,000 to $300,000.

    Interior and exterior LED lighting and bathroom renovations led the list at $300,000 each, followed by $250,000 from bleacher renovations.

    Also included within the $2.2 million is a district-wide contingency fund of $274,000, school board documents show.

    A breakdown of what contingency funds would cover was not available, and Green couldn’t be reached for follow-up comment as of press time.

    The bond itself would take about a year to repay, and debt millage would remain constant at 20.6 mils, according to district documents.

    The interest rate wasn’t immediately available, though board documents state the district could receive a competitive rate through the S.C. Association of Gov­ernmental Organizations (SCAGO), which the district is utilizing to issue the bond.

    “The SCAGO program pools other school district bond issuances, which results in lower issuance costs and potentially bet­ter interest rates due to increased compe­tition for the purchase,” board documents state.

    In addition to quizzing Green about identifying funding sources other than borrowing, Hartman also asked for the amount of the district’s current outstand­ing debts.

    Kevin Robinson, the district’s director of finance, said he couldn’t provide an exact amount.

    “I don’t know the exact amount. We are still paying on the career center,” Robinson said. “That debt has not been extinguished as of yet. And that’s per the schedule that was initially approved.”

  • Element blames closing on tariff

    Smith: It’s crazy… a 25% tariff on the only TV assembler in the United States. County pressing for tariff exemption

    First layoffs for Element Electronics will be Oct. 5. | Callie Sims

    WINNSBORO – Just months after Element Electronics sought the county government’s help to begin looking to expand its footprint and potentially increase employment and tax revenue in the county, the company announced this week that it will be closing.
    In a letter issued to employees on Monday, Element’s Vice President of Human Resources, Carl Kennedy, announced that the company would be laying off most of its employees and closing its facility located at 392 Hwy 321 South in Winnsboro.
    “We hope the closure will be temporary and that we will be able to re-open in three to six months,” Kennedy said in the letter. “But we cannot predict this with any certainty at this time.”
    Kennedy said the closing would begin on Oct. 5, when most of the plant’s 134 permanent, full time employees will be laid off. Smaller groups of employees will be separated on a rolling basis from then until the end of the year, Kennedy said. A skeleton crew of approximately eight employees will remain at the facility, according to Kennedy.
    In a separate letter to employees, Mike O’Shaughnessy, Manager of Element, put a finer point on the situation.
    “Our closure is entirely due to ongoing and increasingly difficult tariff related matters,” O’Shaughnessy wrote. “Element, the only U.S. based television assembler, will soon be subject to duties on our parts far in excess of those of any foreign importer.”
    O’Shaughnessy said the tariffs would make it impossible for Element to continue its U.S. production. He said the duty inversions would cause Element’s factory to pay more in duty on its parts than foreign companies would pay on TVs built and exported from Mexico into the United States.
    Fairfield County Council Chairman Billy Smith said officials in the county and Winnsboro were contacted on Tuesday by several national news outlets about the closure. Smith spoke with CNBC Tuesday afternoon. He said he took that opportunity to press for the components imported for Element to be exempt from the tariff.
    “Our goal at this point,” Smith said, “is to bring attention, from the state and local level, to hopefully get the parts used by Element exempted from the tariff. It’s crazy that, first, a new 10 percent tariff and now the threat of a 25 percent tariff is effecting the only television assembler in the United States, while companies that build and import complete televisions from Mexico and other countries are facing zero increase in tariffs,” Smith said. “These companies contribute nothing to employment in the United States. Element has 134 employees and wants to expand.”
    “This is especially hard to swallow when, just a few months ago we [the county] were assisting Element in finding a suitable building to expand its footprint and potentially grow its employee base more than two-fold. That was after the Administration signaled the new tariffs were going to be placed on fully assembled televisions being imported, which would have given Element a leg up on the foreign competition. That isn’t what happened though,” Smith said. “Now this.”
    On July 10, the Trump administration announced a new 10 percent tariff on $200 billion of goods produced in China. Those goods, O’Shaughnessy wrote in a letter to employees, included the LCD panels and motherboards that Element uses.
    Then, last week, the administration announced that it plans to raise that tariff to 25 percent.
    “No tariffs were placed on fully assembled TVs arriving in the US from China or Mexico,” O’Shaunessy said. “This contrast makes it impossible to sustain our U.S. production operations.”
    O’Shaughnessy said, however, that Element’s management had not given up the battle to get back the company’s ability to produce Element TVs in the United States.
    It was in August, 2013 that Element Electronics, a Minnesota based company, announced its plans to relocate manufacturing operations from China back to the United States, tapping the former Perry Ellis Menswear building in Winnsboro as their new home.
    Vlad Kazhdan, vice president of product for Element, said during the announcement that expected the new venture to create 500 new full-time jobs over the next five years.
    Purchase and Lease
    As part of the agreement, Fairfield County purchased the Perry Ellis building from a Perry Ellis subsidiary for $2 million in a deal that closed on Oct. 14, 2013. But the County only ponied up $600,000 for the property, while the Department of Commerce, through an economic development grant, put up $1.25 million. Element, meanwhile, kicked in the remaining $150,000 for the purchase. An additional $50,000 in DOC grant money went toward the cost of upfitting the building, transforming it from a clothing manufacturing center into a high-tech electronics plant. Fairfield Electric Cooperative and SCANA offered to reimburse Element $100,000 each for upfit costs.
    Element leased the property from the County for $1 a year for 30 years with the option to purchase the property for $1 if, by Dec. 31, 2018, it had created at least 500 new, full-time jobs and had invested at least $7.5 million in taxable property; or, if by the same date, Element had created at least 350 jobs, invested at least $5.25 million, repaid a pro rata amount of the grant money and paid to Fairfield County an additional amount based on the following formula:
    400-499 jobs by Dec. 31, 2018 = $120,000;
    350-399 jobs by Dec. 31, 2018 = $200,000.
    Payments were due to the County by June 1, 2019. Element could also continue to lease the property for $1 a year for an additional five years, but must have created at least 250 new, full-time jobs, invested at least $2.5 million by Dec. 31, 2018, and paid to the County $600,000, plus the pro rata grant amount. Failing to have met those conditions, Element could then lease the property at market value, but still must repay the County’s $600,000 investment.
    Fee in Lieu of Taxes
    Manufacturing property in South Carolina is taxed at 10.5 percent, while commercial and other property is taxed at 6 percent. To level the playing field and help attract industry, Tiffany Harrison, Director of Fairfield Economic Development at the time said, local governments often offer as an incentive fees equivalent to the 6 percent rate that companies may pay instead of taxes. Such an agreement is known as a Fee in Lieu of Taxes, or FILOT. Perry Ellis, however, had no such agreement and their property at 392 Highway 321 Bypass N. was listed on the tax rolls. And once a property is on the books, Harrison said, it cannot be removed. Element, therefore, did not qualify for a FILOT on the property itself, but instead was offered by the County an annual tax credit of 42.8 percent for 30 years to bring their contributions to Fairfield County coffers down to the 6 percent level. Like the lease agreement, that tax credit was contingent upon Element creating at least 500 new, full-time jobs and investing at least $7.5 million over the next five years. Otherwise, the credit decreases by the following formula:
    • If, by Dec. 31, 2018, Element has created less than 500 jobs, but at least 400 and invested less than $7.5 million, but at least $6 million, tax credit = 33 percent;
    • Less than 400 jobs, but at least 350 and an investment of less than $6 million but more than $5.25 million, credit = 23 percent;
    • If, by Dec. 31, 2018, Element has failed to create at least 350 new, full-time jobs and has invested less than $5.25 million, the credit agreement terminates and all property taxes shall be paid retroactively.
    Although the building does not qualify for a FILOT, equipment does, Harrison said, and for their equipment Element will pay a FILOT equivalent to the 6 percent property tax rate for 30 years, provided Element has met the 500 job and $7.5 million investment threshold. Otherwise:
    • Less than 500 jobs, but more than 400 and less than $7.5 million, but at least $6 million = 7 percent;
    • Less than 400 jobs, but at least 350 and less than $6 million but more than $5.25 million = 8 percent.
    • If, by Dec. 31, 2018, Element has failed to create at least 350 new, full-time jobs and has invested less than $5.25 million, the FILOT terminates.
    Typical jobs at Element will pay about $12.50 an hour, on average, Harrison said. Element plans to create 250 jobs in the initial phase of start-up. An additional 250 jobs will be added over the course of five years. Element is a main supplier of electronics to Wal-Mart, as well as Target and QVC.