Capital Improvements Joint Bond Review Committee
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Capital Improvements HUGH K. LEATHERMAN, SR. Joint Bond Review Committee G. MURRELL SMITH, JR. SENATE HOUSE OF REPRESENTATIVES CHAIRMAN VICE CHAIRMAN SENATE MEMBERS HUGH K. LEATHERMAN, SR. F. RICHARD HARMON, JR. HARVEY S. PEELER, JR. DIRECTOR OF RESEARCH THOMAS C. ALEXANDER SFAA LIAISON PAUL G. CAMPBELL, JR. 803-212-6682 GLENN G. REESE HOUSE MEMBERS MARY KATHERINE ROGERS G. MURRELL SMITH, JR. ADMINISTRATIVE ASSISTANT GILDA COBB-HUNTER 803-212-6677 ALAN D. CLEMMONS FAX: 803-212-6690 LEONIDAS E. STAVRINAKIS J. GARY SIMRILL JOINT BOND REVIEW COMMITTEE MEETING Wednesday, October 2, 2019 10:30 a.m. Room 105, Gressette Building AGENDA PAGE 1. SC Department of Commerce South Carolina Rural Strategy Plan ...........................................................................................1 2. Lease Proposals a. State Accident Fund 113 Reed Avenue, Lexington ..................................................................................................24 b. Lander University Jeff May Athletic Complex and Related Financing .................................................................32 c. Winthrop University Lease to York County Disabilities Foundation and City of Rock Hill (Miracle Park)............51 3. Permanent Improvement Project Proposals with Financing Components a. The Citadel, the Military College of South Carolina Capers Hall Academic Building Replacement ........................................................................59 b. Clemson University Daniel Hall Renovation and Expansion ..................................................................................69 c. University of South Carolina Campus Village Residential Development .............................................................................78 d. Medical University of South Carolina College of Pharmacy Addition and Innovative Instructional Redesign Renovation ..............90 4. Permanent Improvement Project Proposals ..................................................................................99 5. SC Jobs-Economic Development Authority Annual Report ........................................................................................................................150 6. Report of Staff Action SC Department of Natural Resources Charleston - Cape Dike Restoration Project .........................................................................173 7. Pending Matters and Updates from Prior Meetings ....................................................................193 8. Future Meeting .............................................................................................................................195 JOINT BOND REVIEW COMMITTEE Item 1 Meeting of October 2, 2019 AGENCY: SC Department of Commerce PROJECT/SUBJECT: SC Rural Strategy Plan Background. Proviso 50.21 of Act 91 (2019), Part IB (the FY2019-20 Appropriation Act) establishes within the Department of Commerce the Rural School District and Economic Development Closing Fund. The fund must be used to facilitate economic development and infrastructure improvements in counties that contain a school district that has been defined by the Department of Education as having a poverty rate greater than or equal to 86%. The proviso also provides the following criteria: 1) One of the top 12 counties with the highest population decline by percentage since 2010; 2) One of the top 12 counties with the highest average unemployment rate for 2018; and 3) According to the US Census 2017 a county with a poverty rate in excess of 20%. Up to $15 million of the fund may be used in any county that is contiguous to an eligible county as long as that contiguous county has one county-wide consolidated public school district. Funds are to be used on, but use is not limited to, economic development projects, water and sewer infrastructure, and school building infrastructure. Once a project is committed, the funds may be utilized to finish that project, even if the county does not remain an eligible county in subsequent years. The plan must be reviewed by the Joint Bond Review Committee before funds may be expended, and any unexpended funds at the end of the fiscal year must be carried forward and expended in the current fiscal year by the Department of Commerce for the same purposes. Proviso 112.1 of the FY2019-20 Appropriation Act directs a transfer of $65 million to the fund. In accordance with Proviso 50.21, the Department of Commerce proposes the attached plan, and requests review by the Committee. Observations. Attachment C of the plan reflects 14 eligible and 15 contiguous counties, as follows: Eligible: Allendale; Bamberg; Barnwell, Clarendon; Dillon; Fairfield; Florence; Hampton; Jasper; Lee; Marion; Marlboro; Orangeburg; Williamsburg Contiguous: Aiken; Beaufort; Berkeley; Calhoun; Chester; Chesterfield; Colleton; Darlington; Georgetown; Horry; Kershaw; Lancaster; Newberry; Sumter; Union 1 The plan integrates efforts of the Department of Commerce that previously identified the 5 South Carolina counties facing greatest economic development challenges: Allendale; Bamberg; Fairfield; Lee and Williamsburg. Commerce has evaluated the overall health of industry, conducted dialogue and data review with local leadership, and has developed plans and strategies to promote economic development in these underserved areas. While the approach has been consistent for each county, the potential investment has been tailored based on evaluation findings. Commerce has refined this approach for application to the other 9 eligible counties. Commerce will commit four full-time employees to the successful implementation of the program. Administrative expenses of the program will be funded from existing Commerce funds, and not the Rural School District and Economic Development Closing Fund. The plan contemplates integrating the 5 previously identified counties described above and introducing 2 or 3 additional counties into the program by the end of 2019. Notably, the plan contemplates additional state funding in future fiscal years. Inasmuch as plans and strategies to promote economic development will be tailored for each county based on evaluation findings, Commerce proposes an indicative range of potential investment within 9 strategic areas, with emphasis on education and future growth: Regional Infrastructure $13 - 20 million Rural Closing Fund $8 - 12 million Access to Technology $2 - 5 million Education, Workforce Development and Talent Recruitment $5 - $15 million Social Issues $2 - 4 million General Economic Development Preparedness $10 - 15 million Project-Specific Research $1 - 3 million Opportunity Zones Grant Program $1 - 2 million Education $4 - 8 million Commerce proposes providing an annual report to the Joint Bond Review Committee by November 1 of each year that will include an update and status of projects in process, preliminary outcomes, and measures reflective of success in addressing future growth and education objectives. The report will further include an accounting of funding by county and project, and changes to the estimated budget range for each type of project. COMMITTEE ACTION: Review the plan proposed by the SC Department of Commerce in accordance with Proviso 50.21 of Act 91 (2019), and provide comment as appropriate. ATTACHMENTS: 1. Letter from SC Department of Commerce. 2. SC Department of Commerce Rural Strategy Overview. 3. Provisos 50.21 and 112.1 of Act 91 (2019), Part IB. 2 3 Executive Summary South Carolina has experienced unprecedented success in recruiting new capital investment and jobs over the past eight years; however, not all areas of the state have shared in these successes at an acceptable level. To address this variance, South Carolina Department of Commerce (S.C. Commerce) has developed a rural strategy to identify and initiate comprehensive solutions to, ultimately, build a stronger, sustainable rural South Carolina (See Attachment A). In January of 2018, Secretary Bobby Hitt charged S.C. Commerce staff with the development and implementation of a program to address the five counties that have faced the most challenges from an economic development standpoint. In July of 2019, S.C. Commerce was allocated $65 million for development, specifically funding for rural infrastructure, under proviso 50.21 as approved by the South Carolina General Assembly (See Attachment B for proviso). These allocated funds have been designated to address rural initiatives in 14 South Carolina counties (See Attachment C for a map of the eligible counties). As outlined below, S.C. Commerce has refined the original strategy and will implement this approach for the nine remaining counties (of the original 14) identified by the General Assembly, based on population decline and poverty rate. The objective of all projects funded via the rural strategy program will be to improve the conditions for future growth, stabilization of the rural communities and make targeted investments into the K-12 and technical school systems serving the eligible counties. Background As South Carolina has experienced this remarkable momentum, the growth has not been experienced equally throughout the state. With approximately 20 percent of the labor force residing in non-urban counties, there is tremendous potential. However, these rural communities often face more challenges to be pro-active with economic development efforts because of financial, infrastructure, education, workforce and resource deficiencies. In many cases, there are not sufficient budgets to address critical public needs, which take