A company will add $14M investment and new jobs if Lancaster County throws in the land

A new economic development deal could bring more than $14 million of investment to Lancaster County, along with new jobs.

Lancaster County Council meets Monday night. The county has two decisions related to a tax incentive agreement with an unnamed company on the agenda. That company, per county documents, expects to invest more than $14.3 million and create at least 15 new full-time jobs if the deal happens.

Project E3, as it is now called, comes up for the first of three votes needed to set up a fee in place of tax agreement. The vote also would allow financial credits against that negotiated fee. By or before the third vote, the decision would require a public hearing.

A related decision involves a county resolution stating its willingness to enter a deal with Project E3, and willingness to convey county property to the company to complete that deal.

It’s fairly routine on large economic development deals for companies to establish terms with counties but not announce themselves by name until the final county vote on a fee deal. The former Carolina Panthers headquarters project in Rock Hill went through York County negotiations as Project Avalanche. The recent Snider Fleet Solutions announcement in Lancaster County first appeared as Project Spider.

York County has a potential $1 billion deal with Project Cobra that, with one vote remaining, still hasn’t named the company. The Herald has linked that project with Kansas-based QTS Data Centers.

Do recent land transactions point to $1 billion Project Cobra deal in York County?

While the company isn’t yet listed for Project E3, some details are available.

Tax incentive deal

According to Lancaster County documents, the company behind Project E3 and possible affiliates would acquire, construct and install a new project in Lancaster County, provided the county enters a fee agreement and conveys land where the company would locate. The almost 17-acre site is on Quality Drive in Lancaster.

The company would have six years to meet investment ($14.3 million) and job (15) requirements from the proposed tax incentive deal. If those numbers aren’t met, the agreement would be voided and the company would be on the hook for the difference between what it would’ve paid in taxes and the negotiated fee amounts.

The company would pay a fee on a 6% tax rate. That’s down from the 10.5% assessment rate for many large companies eligible for fee deals. The tax millage rate would be fixed for the 20-year term of the agreement.

Many companies in the Rock Hill region got incentives, but have they kept their promises?

The company also would be eligible for special source revenue credits. Or, credits the company can claim against the fee it pays based on investment in public or economic infrastructure improvements. Project E3 would be eligible for those credits at 12% of its fee payment for the first 10 years of the deal.

Per county documents, the state will provide an incentive package at a little more than $1 million for 10 years to include job development and job tax credits.

Headquarters site

The county describes Project E3 as a small business development opportunity but also a headquarters location. The company would have distribution, final assembly, limited repair operations and a showroom facility. County documents show plans to build on a 16.6-acre land parcel.

The parcel of county-owned property sits at the southern corner of Monroe Highway and Quality Drive. The property is straight across Quality Drive from the Chief Industries building, another economic development that last year announced 100 new jobs and $22 million of investment during its term.

Lancaster County will sell the almost 17 acres to Project E3, per the agreement, for $100. County records show a long history of county ownership but no significant changes there since 1997. The site zoned for heavy industrial use is valued, according to county tax records, at almost $84,000.

If council moves forward with the deal on Monday night, the county likely would vote again Sept. 11 before a public hearing and final vote on Sept. 25. That later date would include naming of the company.

A closer look at almost 100 business pitches, what was promised in the Rock Hill region