2003-2004 Bill 1183: Tax Increment Financing Act, Additional Findings; Definitions Related

1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 S. 1183 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Senator Land 10 Document Path: l:\council\bills\ggs\22626htc04.doc 11 12 Introduced in the Senate on April 21, 2004 13 Introduced in the House on June 1, 2004 14 Currently residing in the House Committee on Ways and Means 15 16 Summary: Tax Increment Financing Act, additional findings; definitions related to rural areas 17 18 19 HISTORY OF LEGISLATIVE ACTIONS 20 21 Date Body Action Description with journal page number 22 4/21/2004 Senate Introduced and read first time SJ-34 23 4/21/2004 Senate Referred to Committee on Labor, Commerce and Industry SJ-34 24 4/28/2004 Senate Recalled from Committee on Labor, Commerce and Industry SJ-10 25 4/28/2004 Senate Committed to Committee on Finance SJ-10 26 5/19/2004 Senate Committee report: Favorable Finance SJ-34 27 5/20/2004 Senate Read second time SJ-24 28 5/20/2004 Senate Ordered to third reading with notice of amendments SJ-24 29 5/20/2004 Scrivener's error corrected 30 5/27/2004 Senate Read third time and sent to House SJ-203 31 6/1/2004 House Introduced and read first time HJ-24 32 6/1/2004 House Referred to Committee on Ways and Means HJ-24 33 34 35 VERSIONS OF THIS BILL 36 37 4/21/2004 38 5/19/2004 39 5/20/2004 40 1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE REPORT 5 May 19, 2004 6 7 S. 1183 8 9 Introduced by Senator Land 10 11 S. Printed 5/19/04--S. [SEC 5/20/04 2:29 PM] 12 Read the first time April 21, 2004. 13 14 15 THE COMMITTEE ON FINANCE 16 To whom was referred a Bill (S. 1183) to amend the Code of 17 Laws of South Carolina, 1976, by adding Section 31-7-25 so as to 18 provide additional findings of the General Assembly with respect 19 to, etc., respectfully 20 REPORT: 21 That they have duly and carefully considered the same and 22 recommend that the same do pass: 23 24 HUGH K. LEATHERMAN, SR. for Committee. 25

1 [1183-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 12 1976, BY ADDING SECTION 31-7-25 SO AS TO PROVIDE 13 ADDITIONAL FINDINGS OF THE GENERAL ASSEMBLY 14 WITH RESPECT TO PROPERTY AVAILABLE FOR 15 REDEVELOPMENT FOR PURPOSES OF THE TAX 16 INCREMENT FINANCING ACT FOR COUNTIES; TO 17 AMEND SECTION 31-7-20, RELATING TO EXISTING 18 FINDINGS FOR PURPOSES OF THE ACT, SO AS TO 19 EXTEND EXISTING FINDINGS WITH RESPECT TO THE 20 ACT; TO AMEND SECTION 31-7-30, RELATING TO 21 DEFINITIONS FOR PURPOSES OF THE ACT, SO AS TO 22 REVISE APPLICABLE DEFINITIONS TO EXTEND THE 23 APPLICATION OF THE ACT TO MORE RURAL AREAS AND 24 ADD ADDITIONAL ELEMENTS TO DEVELOPMENT 25 PROJECTS NECESSARY TO ASSIST SUCH RURAL AREAS; 26 TO AMEND SECTION 31-7-80, RELATING TO THE 27 FINDINGS REQUIRED FOR A REDEVELOPMENT PROJECT 28 ORDINANCE, SO AS TO REVISE THESE FINDINGS; AND 29 TO AMEND SECTION 31-7-120, RELATING TO JOINTLY 30 ADOPTED MUNICIPAL AND COUNTY REDEVELOPMENT 31 PLANS, SO AS TO AUTHORIZE COUNTIES JOINTLY BY 32 INTERGOVERNMENTAL AGREEMENTS TO ESTABLISH A 33 MULTI-COUNTY OR REGIONAL AUTHORITY TO 34 ESTABLISH REDEVELOPMENT PLANS AND PROPERTY 35 WHEN SUCH PROJECTS HAVE ECONOMIC IMPACT 36 BEYOND A SINGLE COUNTY AND PROVIDE FOR ALL 37 SUCH AUTHORITIES TO ACT BY INTERGOVERNMENTAL 38 AGREEMENT AND ORDINANCES OF COUNTIES PARTY 39 TO THE AGREEMENT. 40 41 Be it enacted by the General Assembly of the State of South 42 Carolina:

1 [1183] 1 1 2 SECTION 1. Chapter 7, Title 31 of the 1976 Code is amended by 3 adding: 4 5 “Section 31-7-25. The General Assembly further finds that: 6 Vast expanses of land located at considerable distance from 7 municipalities and urban and suburban development in counties, 8 while having served the people of this State and its economy when 9 originally developed and maintained over the generations as 10 agricultural property, contributing food, fiber, timber, and 11 pulpwood, now, in an evolving economy and amidst a much 12 smaller, yet vastly more efficient agricultural economy, is in need 13 of redevelopment to provide multiple uses utilizing the 14 redevelopment tools provided in this chapter, with suitable 15 modifications to provide for the particular requirements to 16 redevelop areas formerly developed only for agricultural use.” 17 18 SECTION 2. Section 31-7-20(A)(3) of the 1976 Code, as added 19 by Act 109 of 1999, is amended to read: 20 21 “(3) There exist in many counties of this State blighted, 22 conservation, and sprawl areas; the sprawl and conservation areas 23 are rapidly deteriorating and declining and may soon become 24 blighted areas if their decline is not checked; the stable economic 25 and physical development of the blighted areas, conservation 26 areas, and sprawl areas are endangered by the presence of blighting 27 factors as manifested by progressive and advanced deterioration of 28 structures, by the overuse of housing and other facilities, by a lack 29 of physical maintenance of existing structures, by obsolete and 30 inadequate community facilities, and a lack of sound community 31 planning, by obsolete platting, diversity of ownership, excessive 32 tax, and special assessment delinquencies, or by a combination of 33 these and other factors; that as a result of the existence of blighted 34 areas, areas requiring conservation, and sprawl areas, there is an 35 excessive and disproportionate expenditure of public funds, 36 inadequate public and private investment, unmarketability of 37 property, growth in delinquencies and crime, and substandard 38 housing conditions and zoning law violations in such areas 39 together with an abnormal exodus of families and businesses so 40 that the decline of these areas impairs the value of private 41 investments and threatens the sound growth and the tax base of 42 taxing districts in such areas, and threatens the health, safety, 43 morals, and welfare of the public.”

1 [1183] 2 1 2 SECTION 3. Section 31-7-30 of the 1976 Code, as added by Act 3 109 of 1999, is amended to read: 4 5 “Section 31-7-30. Unless the context clearly indicates 6 otherwise: 7 (1) ‘Blighted area’ means any improved or vacant area 8 within the boundaries of a redevelopment project area located 9 within the territorial limits of a county where: 10 (a) if improved, industrial, commercial, and residential 11 buildings or improvements, because of a combination of five or 12 more of the following factors: age; dilapidation; obsolescence; 13 deterioration; illegal use of individual structures; presence of 14 structures below minimum code standards; excessive vacancies; 15 overcrowding of structures and community facilities; lack of 16 ventilation, light, or sanitary facilities; inadequate utilities; 17 excessive land coverage; deleterious land use or layout; 18 depreciation of physical maintenance; lack of community 19 planning; ,are detrimental to the public safety, health, morals, or 20 welfare; or; 21 (b) if vacant, the sound growth is impaired by: 22 (i) a combination of two or more of the following 23 factors: obsolete platting of the vacant land; diversity of ownership 24 of such land; tax and special assessment delinquencies on such 25 land; deterioration of structures or site improvements in 26 neighboring areas adjacent to the vacant land, lack of necessary 27 transportation infrastructure, water or wastewater services, or both, 28 access to adequate electric and natural gas energy services, and 29 lack of modern communications infrastructure; or 30 (ii) the area immediately prior to becoming vacant 31 qualified as a blighted area. Any area within a redevelopment plan 32 established by Chapter 10 of Title 31 is deemed to be a blighted 33 area. 34 (2) ‘Conservation area’ means any vacant or improved area 35 within the boundaries of a redevelopment project area located 36 within the territorial limits of a county that is not yet a blighted 37 area but, because of a combination of three or more of the 38 following factors: dilapidation; obsolescence; deterioration; illegal 39 use of structures; presence of structures below minimum code 40 standards; abandonment; excessive vacancies; overcrowding of 41 structures and community facilities; lack of ventilation, light, or 42 sanitary facilities; inadequate utilities; excessive land coverage; 43 depreciation of physical maintenance; or lack of community

1 [1183] 3 1 planning,; agricultural foreclosures; static or declining agricultural 2 land rental rates; depopulation; area - wide economic decline; or 3 static per capita income, is detrimental to the public safety, health, 4 morals, or welfare and may become a blighted area. 5 (3) ‘Sprawl area’ means a vacant or improved area within 6 the boundaries of a redevelopment project area located within the 7 territorial limits of the unincorporated area of a county that is not 8 yet a blighted area nor a conservation area but, because of the 9 existence of one or more of the following conditions, has the 10 potential to become blighted or in need of conservation: 11 (a) The sprawl area is an unincorporated urban zone, 12 UUZ, which is an area within the unincorporated portion of the 13 county issuing the finding and has a population density equal to or 14 greater than the average population density of the incorporated 15 municipalities within the territorial limits of the county issuing the 16 finding. 17 (b) The sprawl area is a linear service zone, LSZ, which is 18 an area within the unincorporated portion of the county issuing the 19 finding which is or is likely to become an area no more than two 20 miles wide at its widest point and no less than three miles in length 21 and which, due to development within the zone, represents an 22 impediment to vehicular and pedestrian traffic so that the county 23 finds its existence a detriment to the: 24 (i) economic health and well-being of the county; 25 (ii) health or safety of the persons living, working, or 26 traveling through the zone; or 27 (iii) efficient provision of governmental services both 28 within and without the zone. 29 (c) The sprawl area is a rural redevelopment zone, RRZ, 30 which is an area within the unincorporated portion of the county 31 issuing the finding which consists primarily of vacant land which, 32 if provided with certain environmental, energy, transportation, or 33 communications infrastructure, could be developed as a planned 34 community consisting of a minimum of one thousand contiguous 35 acres of land, inclusive of flooded land or other forms of 36 redevelopment, without regard to minimum acreage requirements, 37 suitable for planned communities, other residential clusters, light 38 industry, tourism and recreation facilities, retail centers, and 39 locations suitable for manufacturing facilities. 40 (4) ‘Municipality’ means an incorporated municipality of 41 this State.

1 [1183] 4 1 (5) ‘Obligations’ means bonds, notes, or other evidence of 2 indebtedness issued by the county to carry out a redevelopment 3 project or to refund outstanding obligations. 4 (6) ‘Redevelopment plan’ means the comprehensive 5 program of the county for redevelopment intended by the payment 6 of redevelopment costs to reduce or eliminate those conditions 7 which qualified the redevelopment project area as a blighted area, 8 conservation area, or sprawl area, or combination of two or three 9 of them, and to enhance the tax bases of the taxing districts which 10 extend into the project redevelopment area. Each redevelopment 11 plan shall set forth in writing the program to be undertaken to 12 accomplish the objectives and shall include, but not be limited to, 13 estimated redevelopment project costs including long - term project 14 maintenance, as applicable, the anticipated sources of funds to pay 15 costs, the nature and term of any obligations to be issued, the most 16 recent equalized assessed valuation of the project area, an estimate 17 as to the equalized assessed valuation after redevelopment, and the 18 general land uses to apply in the redevelopment project area. A 19 redevelopment plan established by Chapter 10 of Title 31 is 20 deemed a redevelopment plan for purposes of this paragraph. 21 (7) ‘Redevelopment project’ means any buildings, 22 improvements, including street, road, and highway improvements, 23 water, sewer and storm drainage facilities, parking facilities, and 24 recreational tourism and recreation - related facilities, energy 25 production or transmission infrastructure, communications 26 technology, and public transportation infrastructure including, but 27 not limited to, rail and airport facilities. Any project or 28 undertaking authorized under Section 6-21-50 may also qualify as 29 a redevelopment project under this chapter. All such projects are 30 to be publicly owned. 31 (8) ‘Redevelopment project area’ means an area designated 32 by the county, which is not less in the aggregate than one and 33 one-half acres and in respect to which the county has made a 34 finding that there exist conditions that cause the area to be 35 classified as a blighted area, a conservation area, or a sprawl area, 36 or a combination of two or three of them. The total aggregate 37 amount of all redevelopment project areas of any one county may 38 not exceed five percent of the total acreage of the county but this 39 limit does not apply with respect to these parts of a redevelopment 40 project area comprised of a conservation area or an RRZ sprawl 41 area. 42 (9) ‘Redevelopment project costs’ means and includes the 43 sum total of all reasonable or necessary costs incurred or estimated

1 [1183] 5 1 to be incurred and any costs incidental to a redevelopment project. 2 The costs include, without limitation: 3 (a) costs of studies and surveys, plans, and specifications; 4 professional service costs including, but not limited to, 5 architectural, engineering, legal, marketing, financial, planning, or 6 special services; 7 (b) property assembly costs including, but not limited to, 8 acquisition of land and other property, real or personal, or rights or 9 interest therein, demolition of buildings, and the clearing and 10 grading of land; 11 (c) costs of rehabilitation, reconstruction, repair, or 12 remodeling of a redevelopment project; 13 (d) costs of the construction and long - term maintenance of 14 a redevelopment project; 15 (e) financing costs including, but not limited to, all 16 necessary and incidental expenses related to the issuance of 17 obligations and which may include payment of interest on any 18 obligations issued under the provisions of this chapter accruing 19 during the estimated period of construction of any redevelopment 20 project for which the obligations are issued and including 21 reasonable reserves related thereto; 22 (f) relocation costs, including relocation or removal costs 23 of federal, state, or local government facilities or activities to the 24 extent that a county determines that relocation costs must be paid 25 or required by federal or state law. 26 (10) ‘Taxing districts’ means counties, incorporated 27 municipalities, schools, special purpose districts, and public and 28 any other municipal corporations or districts with the power to 29 levy taxes. Taxing districts include school districts which have 30 taxes levied on their behalf. 31 (11) ‘Vacant land’ means any parcel or combination of 32 parcels of real property without industrial, commercial, and 33 residential buildings. 34 (12) ‘County’ means any county in the State.” 35 36 SECTION 4. Section 31-7-80(A)(7)(a) of the 1976 Code, as 37 added by Act 109 of 1999, is amended to read: 38 39 “(a) the redevelopment project area is a blighted, 40 conservation, or sprawl area and that private initiatives alone are 41 unlikely to alleviate these conditions without substantial public 42 assistance,” 43

1 [1183] 6 1 SECTION 5. Section 31-7-120 of the 1976 Code, as added by Act 2 109 of 1999, is amended to read: 3 4 “Section 31-7-120. Counties and municipalities through 5 intergovernmental agreements may jointly adopt redevelopment 6 plans and authorize obligations as provided under the provisions of 7 this chapter and Chapter 6 of this title. Counties by 8 intergovernmental agreement incorporated into individual county 9 ordinances, may establish a multi - county or regional authority for 10 both the establishing of a redevelopment plan and redevelopment 11 projects if the documented economic impacts of projects extend 12 beyond the boundaries of a single county. All actions to develop 13 such plans and projects must be taken by the governing bodies of 14 the respective counties participating in the grouping or authority 15 pursuant to the contractual terms of the intergovernmental 16 agreements establishing such groupings or authority.” 17 18 SECTION 6. This act takes effect upon approval by the 19 Governor. 20 ----XX---- 21

1 [1183] 7