As manufacturing deals ramp up, Richland County mulls public-private approach to recruiting industry
Amid a slew of recent economic development announcements in Richland County, county leaders are considering a possible new strategy for economic development and business and industry recruitment.
The council’s economic development committee on Thursday discussed the prospects of a public-private setup for economic development. While exploration of a new strategy has been in the works for a couple years, the latest discussions draw interest as they come at a time when the county has made recent moves to approve tax incentives for a landmark $2 billion manufacturing proposal, among other high-dollar investments recently announced in the county.
Currently, the county’s economic development office, which helps recruit industries and businesses to the county, is a publicly funded affair that is completely under the purview of the county. A proposed new approach could have the county share those recruiting duties and costs with private partners. It would introduce private funding into the economic development process, with the private sector helping to market the county’s assets and network with potential new companies beyond ways the county can do that work itself.
As proposed, Richland County Council would approve the budget of the would-be public-private economic development partnership. And any tax incentive agreements for industrial projects would also have to be approved by County Council, just as they currently are. Employees of the effort would work for the partnership, whereas currently employees of the Richland County Economic Development Office are county employees.
Exploring a public-private partnership for economic development was part of the Richland County Economic Development Office’s strategic plan adopted two years ago. Richland County paid $75,000 for that strategic plan, which was developed by Texas-based consultants TIP Strategies.
“Privatization of county economic development is not the goal,” that 2021 strategic plan stressed. “Rather, a new (public-private partnership) will allow Richland County to fully partner with the private sector and better utilize the resources, relationships, and expertise of the business community. County leadership will have the opportunity to work with a rising class of business leaders on growth related matters critical to the county’s future.”
A number of other counties and areas in South Carolina use public-private economic development firms to lure and bolster industry. One of the most notable is in fast-growing, industry-rich Greenville, which has the Greenville Area Development Corporation. Spartanburg, Pickens and Florence also are among counties that have public-private economic development partnerships.
Now Richland County is taking the early steps to investigate whether such a setup would work here.
Potential benefits of a public-private economic development setup, according to the 2021 strategic plan and information presented to the council committee Thursday, could include more speed and efficiency in responding to business development opportunities; greater access to various private sector networks, industry knowledge and resources; and added potential to engage on such issues as workforce, housing, and social equity.
The public-private venture would be governed by a board. Thursday’s proposal suggested a nine-member board, three seats of which would be occupied by members of County Council. The proposal also suggested the would-be public-private firm would work toward a funding breakdown that eventually would be 80% public and 20% private.
Any switch to a public-private partnership for economic development would have to be approved by Richland County Council. There likely will be more committee meetings and discussions on the matter before it would go to the full council for a vote, officials said Thursday.
Longtime County Councilman Paul Livingston, who chairs the economic development committee, said council should give serious thought to the proposal.
“I think one of the most important things about the (possible public-private venture) is you get commitment and buy-in,” Livingston said. “I would say to you right now that a high percentage of the persons who are in our community who are executives of major companies have no idea what our role is in economic development. ... They are not aware of how Richland County makes things work for them. ... The bottom line is this is one way we are going to increase investment and jobs. That’s the bottom line for me.”
As things currently stand, Richland County’s Economic Development Office has landed some blockbuster industry deals in recent years.
For instance, the county landed the Mark Anthony Brewing factory, which makes White Claw alcoholic seltzers and other beverages. That $490 million facility, which brought in 300 new jobs, opened last year on Shop Road. China Jushi, meanwhile, opened a $400 million fiberglass producing operation on Shop Road in 2019.
More recently, the county has teased a pair of new developments that would dwarf those previous investments. County Council approved tax incentives in late 2022 for an as-yet-unnamed project that would bring a nearly $1 billion investment and 1,800 new jobs to the county. And Council is currently considering tax incentives for another manufacturing project, code-named Project Connect, that would have a $2 billion investment and 4,000 jobs.
This story was originally published February 17, 2023 at 10:53 AM.
