Opinion ID: 1218518
Heading Depth: 2
Heading Rank: 2

Heading: the union camp expansion

Text: On June 28, 1988, Respondents Richland County and Union Camp Corporation entered into an Inducement Agreement which utilized the negotiated fee in lieu of taxes in connection with a proposed $700 million expansion of existing manufacturing facilities. The negotiated fee was a decided factor in Union Camp's decision to undertake the expansion in Richland County. Under the Agreement, title to the property will be conveyed to Richland County at the price paid by Union Camp. The County will then issue approximately $500 million in industrial revenue bonds, the proceeds of which will finance the expansion. The County will lease the plant and equipment to Union Camp at a rental sufficient to pay principal and interest on the bonds. At the end of the lease term, Union Camp will have the option to purchase the project for $1. With respect to the payment in lieu of taxes, the Agreement provides: The lease agreement shall contain a provision requiring the Company to make payments in lieu of taxes. Such payments shall be made for a term of twenty years in amounts not less than the ad valorem taxes that would be due on the Project if it were not owned by the County, but using an assessment ratio of 6% and the millage rate in effect on the date when the Bonds are executed and delivered. This provision accords with the requirement of § 4-29-67. When completed, the expansion will create 267 new jobs and add an estimated $7.5 million annually to Union Camp's payroll. The State Development Board Projects that an additional 400 jobs and $12.8 million in annual income will be added to the local economy as a result of secondary business services.