The City of Rock Hill has undertaken several initiatives to encourage development within certain strategic areas of the city.  The offering of financial incentives for urban in-fill projects will encourage new projects into these areas.  A suitable mix of projects, in turn, could serve as catalysts for additional investment in these critical areas.

Rock Hill has shown success in attracting industrial and commercial employment uses, despite many competitive obstacles.  The biggest obstacle is South Carolina's disproportionately high property tax assessment for manufacturing and commercial properties.  Manufacturing property in South Carolina is assessed at 10.5% of fair market value, more than 2.5 times the rate of single family housing and almost twice the rate of commercial development.  In comparison, North Carolina taxes all properties at a uniform rate.

Impact fees are one tool created to manage growth.  While zoning and other tools should be considered to accomplish growth management goals, financial incentives provide the most immediate and direct enticement to offset the effect of impact fee collection and foster in-fill development. 

Financial incentives shall be primarily allocated to new construction or to redevelopment projects which do not substantially benefit from impact fee redevelopment credits. 

Incentives may be used to offset the following expenses:

1. Impact Fees
2. Water/Sewer Meter Set Fees
3. Building Permit Fees

Incentive Eligibility

1. All GMI applications shall be considered for approval or denial by City Council.
2. Targeted Areas:  GMI incentives should be limited to specific areas of the city and should be used primarily to attract development into areas with redevelopment plans in place.  These areas are to include the following:
   1. The Old Town area and other urban core areas with Focal Point Plans or Master Plans.
   2. Business Parks which follow quality development standards and restrictive covenants.
   3. Designated Opportunity Zones which include U.S. Census tracts 45091060501, 45091060401, 45091060300 and 45091060200.
3. Targeted Land Uses: New industrial, commercial, and even residential projects suitable for incentives which meet the goals of the City-conducted studies of that area are eligible.  City staff has developed a list of appropriate uses which will be recommended for approval and a list of uses which will be recommended to be denied for financial assistance.
4. Development projects containing residential uses shall comply with the City's Affordable Housing Policy regarding the provision of affordable housing units if incentives are sought. Rock Hill Affordable Housing Policy

Apply for the Growth Management Incentive (GMI)

VIEW COMPLETE 2030 GROWTH PLAN

The Facade Rehabilitation Grant Program is designed to improve the appearance of historic buildings, stimulate private investment in these structures, and make the Southside TIF area more attractive to business activity. The program makes available grants to rehabilitate or restore the facades of qualifying structures with a commercial use. Owners may receive up to 25% of the cost of facade renovations not to exceed $20,000. Corner buildings or buildings with rear facades are eligible to apply for up to 25% of the cost of the additional renovations not to exceed $15,000 to rehabilitate or restore qualifying additional facades on a first come first serve basis.  For buildings or properties that request funding for improvements that will exceed these guidelines or are located outside of the eligible area, the Rock Hill City Council may, at its sole discretion, appropriate additional funding on a case-by-case basis.

Apply for the Facade Rehabilitation Grant Program policies online.

Tax Increment Financing (TIF) is a tool municipalities can use to finance municipally-owned public improvements such as streets, sidewalks, utilities, landscaping, parks, public buildings, and transit facilities within designated redevelopment areas. Within designated TIF districts, incremental or new tax revenues are dedicated to funding public improvements over a set period of time after paying off previously-issued TIF debt or bonds.

The City of Rock Hill has three active Tax Increment Finance (TIF) Districts: Textile Corridor, Downtown, and Red River/Riverwalk. Tax revenues generated in each district help fund capital projects within that district. In FY15, over $2 million in revenues were generated in the City’s TIF districts. Anticipated revenues from TIF Districts were provided by the City’s Economic and Urban Development Department (it should be noted that revenues are highly variable).

The University Center development in Knowledge Park is being financed in part by TIF.  LEARN MORE

Where appropriate, the City of Rock Hill will work with developers to access federal and/or state tax credits associated with historic buildings, the use of former textile industry buildings, affordable housing, and investment in low-to-moderate income census tracts.  The tax credits can be used to attract equity funds needed for (re)development activities.

The Talent Pipeline Program was conceived as part of a second year South Carolina Innovation Challenge Grant which was awarded to the Knowledge Park collaborating partners, including the Rock Hill Economic Development Corporation, the City of Rock Hill, Winthrop University, York Technical College and Rock Hill Schools.  The program was initially designed to utilize grant funds to pay one half the cost of a college student intern, employed by local technology companies.

The program has now expanded to include an array of companies where local college students, primarily from Winthrop University and York Technical College, are encouraged to submit resumes to match with the internship job descriptions.  When an intern and a company are matched up, the intern is paid $10 per hour for up to 20 hours of work per week.  The Talent Pipeline then reimburses the company $5 for each hour an intern works.  If a company has found a good fit with a particular college intern, they are free to hire that person at the end of the internship period.  The original grant funds for the program were exhausted as of June 30, 2016, but have continued through a grant from Wells Fargo. 

• The investment must be greater than $50,000 in new capital expenditure in one year.

• Companies must be involved in manufacturing, R&D, corporate headquarters or distribution/warehouse operations.  If other than manufacturing and R&D, there must be at least 75 new jobs created.

• The Company files return PT-300 to SC Department of Revenue; deduction is automatic.

• The company’s project must be competitive with other locations and the firm must be a manufacturer, warehouse/distribution, or an office/headquarter operation.

• Qualified company must commit to a minimum of $2.5 million investment over a five year period to be eligible.

• Manufacturers can benefit from a lowering of a 10.5 percent assessment ratio to as low as 6 percent on real and personal property. Warehouse/distribution and office operations can benefit from a reduction of an assessment of 10.5 percent to as low as 6 percent on personal property.

• A bond/incentive attorney must prepare legal documents for review and final submission to York County Council for final approval.  The process for full approval by York County Council is approximately eight weeks once negotiated terms have been reached.

• A low cost means to finance a new or expanding operation which can be used to acquire land, construct buildings, improve real property and acquire new machinery.

• Maximum bond issuance is $10 million. Investment cannot exceed $20 million in expenditures over 3+/- years.

• A benefit to companies for job creation that helps reduce state corporate income tax liability, up to 50 percent in a given year.  Program allows for 15 year carry forward of unused credits.

• An annual average monthly employment increase of 10 or more new full-time jobs must be created in order to be eligible and the company must be involved in manufacturing, processing, warehousing, distribution, tourism, be considered a corporate office facility, bank or qualified technology intensive facility.

• Credit of $1,500 annually for five years for each new job. Credit increases to $2,500 per job with Multi-County Business Park status.

• Qualified small businesses (a firm employing 99 or fewer employees) can receive a credit benefit from this program but value of credit may vary depending upon certain performance criteria.

• A credit against state corporate income tax, or corporate license tax based on adding or growing an existing corporate headquarters.

• Credit is equal to 20 percent of the qualifying costs for establishing or expanding a corporate headquarters.  Unused credits can have a 10 year carry forward.

• To qualify a corporate headquarter operation must meet certain investment and/or job thresholds.

• A credit against state corporate income tax, or corporate license tax based on a firm making qualified research and development expenditures.

• Credit equal to 5 percent of expenditures is available; credit is limited to offset 50% of income tax liability after all other tax credits have been applied. 

• A discretionary performance based incentive from the state that rebates a portion of a new employees’ state withholding tax back to the company.  Requires approval by the South Carolina Coordinating Council for Economic Development and applicants are considered on a case-by-case basis.

• Eligible companies must meet specific requirements per the program guidelines and a non-refundable application fee of $4,000 must be paid.

• Approved companies can receive a percentage of each eligible individual employee’s personal income tax returned to them as a cash rebate in either quarterly or annual payments. Depending on salary values, this could be as much as 4 percent of annual payroll. 

Manufacturers

• Machinery and equipment for both research and development and production

• Repair parts

• Materials which will become an integral part of the finished product

• Manufacturing of electricity

• Pollution control

All Industries

• Packaging Materials

• Long Distance Telecommunications, including 800 service

Documents provided by York County Economic Development