Britt: Economic slowdown in '24 likely; Keurig tax break finalized by County Council
Economic growth in Spartanburg County is ending the year on a high note, but is facing headwinds in the year ahead, County Councilman David Britt said.
"You can see the economy slowing down, and when Spartanburg County slows down, the nation slows down," Britt, who chairs the county's economic development committee, told the County Council.
He said there are roughly 20 million square feet of space in spec buildings in Spartanburg, Greenville and Anderson counties — 85% of which is in Spartanburg County.
"The facilities are built, but companies cannot afford a seven-and-a-half percent or greater interest rate in moving their companies to buildings," Britt said.
"Right now, the monitor for '24 is survive till '25," Britt said. "Just get through this — we're in good shape there — then all those buildings that are sitting empty will be filled with companies."
Britt said by the end of this year, companies will have announced a total of $1 billion in investment for the year — some are new businesses relocating to the county, but mostly from existing companies expanding.
Keurig gets final OK for reduced property tax rate
One example of a local business expanding is Keurig Dr. Pepper, which received final tax break approval for its planned $100 million expansion and 250 new jobs by 2027.
The revised fee-in-lieu tax agreement provides Keurig with a 4% property tax rate for 40 years. The standard tax rate for companies is 10.5%.
The expansion is on top of the $380 million previously invested and 155 jobs currently at its location at 6315 Anderson Mill Road in Moore.
More than two years ago, the New England-based company opened its coffee roasting and manufacturing facility.
This project is an extension of the coffee roasting and manufacturing facility which broke ground in 2019.
While the COVID-19 pandemic altered the project timeline, Keurig has continually upgraded and invested in its production, warehousing and distribution capabilities since that time, according to the S.C. Department of Commerce.
KDP’s beverage portfolio consists of 125 brands, including carbonated and non-carbonated beverages such as Dr. Pepper, Canada Dry, Snapple, Mott’s and CORE. The company has the Keurig brewing system, with leading-owned brands Green Mountain Coffee Roasters and The Original Donut Shop.
The Spartanburg County plant focuses on coffee roasting and packaging for K-Cup pods for use in Keurig brewers.
New jobs will be related to KDP’s manufacturing and distribution operations. Individuals interested in employment opportunities should visit KDP’s career center.
More tax breaks in the works in Spartanburg County
Spartanburg County Council also gave final approval for a reduced property tax rate of 6% to:
● CP Logistics Apple Valley V, LLC (Project McIntosh) for a planned $26.35 million investment at its facility on Apple Road.
● John Dodd Phase I Property Owner, LLC (Project Stargazer) for a planned $22.6 million investment at its facility on John Dodd Road.
● TGES America Ltd. (Project Storm 2) for a planned investment of $19.67 million with two new jobs at its facility at 2206 Moore-Duncan Highway.
County Council approved the second of three readings for tax break agreements with:
● Evrnu, SPC (Project Verde 2), which is planning a $51.85 million project with 65 new jobs at 450 North Street in Spartanburg.
● Lockhart Power Company (Project Sprint) for a planned $14 million project at three sites: Tyger River Industrial Park; 149 Montgomery Ave. (Walker Street), Pacolet; and Site 4 – 909 Jerusalem Road, Pacolet.
Bob Montgomery covers Spartanburg County politics and growth & development. Reach him via email at bob.montgomery@shj.com.
This article originally appeared on Herald-Journal: Spartanburg County Council gives final OK to Keurig for tax breaks
