Tax bonds to support east-side development

By Scott Miller , Staff Writer

A new tax-increment financing district could provide millions to redevelop Charleston's east-side neighborhoods just off the Arthur Ravenel Jr. Bridge.

The city wants to issue $11 million in TIF bonds to fund infrastructure improvements in the area impacted by the removal of the Grace and Pearman bridges. TIF districts allow using future property tax gains to pay for current improvements.

The money will help fund transportation and storm water upgrades, new sidewalks, parks and public spaces, curbs, traffic lights and the construction of civic buildings and cultural centers.

The total cost of redevelopment is estimated at $25.2 million, with public grants, local, state and federal transportation dollars and other appropriations needed to fund whatever the TIF won't cover.

"The public improvements to be made as a part of this plan are critical to private investment being made … which will in turn bring long-term benefits to all local governments within the area by substantially increasing the tax base and employment opportunities," wrote Stephen Bedard, Charleston's chief financial officer, in a letter to Charleston County Administrator Mack Canterbury.

The TIF would cost Charleston County an estimated $3 million over 25 years.

County Council is set to discuss the issue at its Dec. 13 finance committee meeting.

Representatives of the Charleston County School District were unavailable to discuss the potential financial impact of the tax district on county school funding.

According to the city's draft ordinance on the proposal, the redevelopment project is needed to "alleviate blighted conditions" and "is in the best interest of the health, safety and general welfare of the citizens of the city of Charleston."

Residents of the area will not be displaced to accommodate development, according to the ordinance.

First reading of the proposed ordinance is scheduled for Tuesday. The city will have a public hearing at 5 p.m. Dec. 18 at City Hall, 80 Broad St., to discuss the TIF district.