USC Beaufort New River Campus Business Plan Final Report
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\ \ \ ' I ' \ . 1~-,~llaNND- -- ~n~MOM!o ···\ !I·~I'IMIII.Allto G<I'A'IUIHI'»>!. \ ..............7'A~M.OI ·, \ /_,/' f t -!mi&.I'CIUE.IID~ ·, \ I II» -..ll!l.411D oot.U'IDIL/ :\\ '""""- \ \' ........,IEAmliii"COMIY ~-·--. E;IIPAIBliN____ ---- - -.. \ OOHCI!ii"TTHHL~r"L.Nf--"""""" Wilbur Smith Associates 1301 Gervais St. (29201) POBOX92 Columbia, SC 29202~0092 (803) 758~4500 (803) 251~2064 fax www. wilbursmith.com Executive Summary The Beaufort County Comprehensive Plan, adopted December 15, 1997, states that 11Beaufort County has work deficiencies that will need to be addressed over time if it is to expand job opportunities for County residents". The Plan reconnnends strategies to create higher paying jobs in clean technology- based businesses, including expanded training and general education opportunities, including university level educational opportunity for basic education and continuing professional training. The Plan suggests provision of support in the creation of a four-year campus, with a research facility. This step is seen as vital in building the strength in higher educational offerings to attract high technology manufacturing and service sector industries. In March 1994, South Carolina Governor Carroll A. Campbell, Jr. and University of South Carolina President, Dr. John Palms, accepted an 80-acre gift from Union Camp Corporation and initiated master planning to move toward development of a new USCB campus at this location. To date, master planning, land planning, and architecture of the first buildings have been completed, and intensive fundraising efforts are ongoing. However, in order for the campus to achieve the goals of the University and Beaufort County, additional funding is required. Beaufort County Council authorized spending County funds to evaluate the efficacy of County support for the University's plan to build a new campus. The purpose of this report is to determine the financing needs and reconnnend financing options for the development of a four-year university in Beaufort County, South Carolina, the USC Beaufort (USCB) New River Campus and the surrounding New River Area in Southern Beaufort County. It is proposed that development in the New River Area resulting from the proposed investment in infrastructure and education should be anticipated. As the New River Campus develops through its stages, it will generate jobs and economic activity in the connnunity. Moreover, the property tax base for the subject property will expand from its current base and begin to generate property tax revenue for the County. The consultant reconnnends that this "value added" in property tax revenue be the primary source for funding the investment in the New River Campus and the surrounding New River Area. This approach ensures that the New River Area itself contributes towards financing the costs associated with the proposed USC Beaufort New River Campus and surrounding infrastructure needs. The Consultant's report further finds that the incremental tax revenue from a defined Tax Increment Financing (TIF) District is sufficient to cover the debt associated with the proposed projects at the New River Campus. Albany NY, Anaheim CA. Atlanta GA, Baltimore MD, Bangkok Thailand, Burlington VT, Charleston SC, Charleston WV, Chicago IL, Cincinnati OH, Cleveland OH Columbia SC, Columbus OH, Dallas TX, Dubai UAE, Falls Church VA, Greenville SC, Hong Kong, Houston TX, Lselin NJ, Kansas City MO, Knoxville TN, LansingMI,Lexington KY, London UK, Milwaukee WI, Mwnbai India, Myrtle Beach SC, New Haven CI', Orlando FL. Philadelphia PA, Pittsburgh PA, Portland ME Poughkeepsie NY, Raleigh NC, Richmond VA, Salt Lake City UT, San Francisco CA. Tallahassee FL, Tampa FL, Tempe AZ, Trenton NJ, Washington DC Employee-Owned Company USC BEAUFORT NEW RIVER CAMPUS BUSINESS PLAN TABLE OF CONTENTS CHAPTER I INTRODUCTION CHAPTER2 NEW RIVER CAMPUS VISION CHAPTER3 STUDY AREA DESCRIPTION CHAPTER4 PREREQUISITES FOR A SUCCESSFUL DEVELOPMENT CHAPTERS ANTICIPATED DEVELOPMENT CHAPTER6 THE CAPITAL IMPROVEMENT PROJECTS CHAPTER7 TAX REVENUE Appendix A: Annual TIF Revenue Less School Allocation CHAPTERS FINANCIAL ANALYSIS Introduction and Executive Summary Outline of Possible Financing Structures Appendix B: Financial Projections for Possible Financing Structures Appendix C:Debt Service Detail for Possible Financing Structures USC BEAUFORT NEW RIVER CAMPUS BUSINESS PLAN TABLE OF CONTENTS CHAPTERl INTRODUCTION CHAPTER2 NEW RIVER CAMPUS VISION CHAPTER3 STUDY AREA DESCRIPTION CHAPTER4 PREREQUISITES FOR A SUCCESSFUL DEVELOPMENT CHAPTERS ANTICIPATED DEVELOPMENT CHAPTER6 THE CAPITAL IMPROVEMENT PROJECTS CHAPTER7 TAX REVENUE Appendix A: Annual TIF Revenue Less School Allocation CHAPTERS FINANCIAL ANALYSIS Introduction and Executive Summary Outline of Possible Financing Structures Appendix B: Financial Projections for Possible Financing Structures Appendix C: Debt Service Detail for Possible Financing Structures CHAPTER! INTRODUCTION USC Beaufort New River Campus Business Plan Chapter 1 INTRODUCTION STATEMENT OF PURPOSE Seeking to serve the citizens of Beaufort County, Beaufort County Council authorized spending County funds to evaluate the efficacy of County fmancial support for USC Beaufort's (USCB) plan to expand its campus. This represents a significant step in the decision making process required to attain the County Council goal of adopting a financial plan to enhance higher education in the County. The evaluation authorized by the County is presented in this document. The purpose of this report is to detennine the financing needs and recommend financing options for the development of a four-year university in Beaufort County, South Carolina, the USC Beaufort (USCB) New River Campus and the surrounding New River Area in Southern Beaufort County. In March 1994, South Carolina Governor Carroll A Campbell, Jr. and University of South Carolina President, Dr. John Palms, accepted an 80-acre gift from Union Camp Corporation and initiated master planning to move toward development of a new USCB campus at this location. To date, master planning, land planning, and architecture of the first buildings have been completed, and intensive fundraising efforts are ongoing. However, in order for the campus to achieve the goals of the University and Beaufort County, additional funding is required. The New River Area, which surrounds the New River Campus, is in the early stages of realizing its development potential. Located near the intersection of Beaufort County's two major growth corridors, U.S. 278 and SC 170, as illustrated in Exhibit 1-1 the New River Area is poised for economic growth and activity. Del Webb began development of its 8,600-home Sun City Hilton Head retirement community in the New River Area in 1995. In the first six years of development, Del Webb Corporation has built 2,185 single-family residences. Located in a previously underdeveloped portion of Beaufort County, Sun City Hilton Head has sparked development in the New River Area. Wal-Mart, Fairfeild Inn, Okatie Commerce Park and the forthcoming Okatie Center neighborhood retail/commercial development provide a glimpse into the future of the New River Area. The commercial potential of the New River Area gains significant support through public investment into the New River Campus and the surrounding infrastructure. This report proposes that development in the New River Area resulting from the proposed investment in infrastructure and education should be anticipated. As the New River Campus develops through its stages, it will generate jobs and economic activity in the community. Moreover, the property tax base for the subject property will expand from its current base and begin to generate property tax revenue for the County. The consultant recommends that this "value added" in property tax revenue be the primary source for funding the investment in the New River Campus and the surrounding New River Area. This approach ensures that the New River Area itself contributes towards financing the costs associated with the proposed USC Beaufort New River Campus and surrounding infrastructure needs. Wilbur Smith Associates 1-1 final Report USC Beaufort New River Campus Business Plan APPROACH Chapter 2 presents the USCB New River Campus vision. A brief history of the University and the vision for a four-year college at New River give way to the current educational, demographic and economic conditions of the Lowcountry region. The collected data and information provides substance to the assertion that USCB and Beaufort County are underserved in terms of space, program offerings, and state funding. A brief description of the current conditions in the New River study area are given in Chapter 3, while an explanation of what is required for development to succeed follows in Chapter 4. These two chapters set the tone for the remainder of the report. The anticipated development in the New River Area is presented in Chapter 5. This includes descriptions of the forecasted land uses, the estimated time frame of build-out, projected square footage and acreage figures, as well as the per acre value of all potential development. Detailed account of the capital improvement projects required to encourage development in the New River Area is given in Chapter 6. These include campus buildings and infrastructure, and public infrastructure projects. Chapter 7 identifies the revenue streams for financing the projects presented in Chapter 6. Taking common planning functions and data gathered through analysis of the Southern