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Thursday, 28 August 2008 |
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A little incentive
Support for revitalization also comes in the form of local, state and federal funds. Moore and Goodrich are appreciative of the tax breaks offered by their county governments, although they both say the type of incentive varies with the level of historic designation.
Olympia Mills and Granby Mills in Columbia, the award-winning Mayfair Mill and the Lofts of Greenville in West Greenville are all on the National Historic Register and are rental apartment complexes. Moore says that with such a historic designation, “there are restrictions on what you can do architecturally.” He noted that several of these might offer the lessee a lease-to-purchase deal after five years’ agreement.
Moore chose to take advantage of Governor Sanford’s S.C. Textiles Communities Revitalization Act, signed in May 2004.
The law provides tax incentives to encourage renovation and redevelopment of abandoned textile mills. A taxpayer who meets the requirements of the law and improves, renovates or redevelops an abandoned textile mill building is eligible for one of two tax credits: a 25% credit against real property taxes or a 25% state income tax credit.
Both credits are calculated on rehabilitation expenses, which are “the expenses incurred in the rehabilitation of the eligible site, excluding the cost of acquiring the eligible site or the cost of personal property maintained at the eligible site.”
“We knew we would qualify, and the Textile Act does not require you to achieve a historic designation,” Moore says. “We did get Greenville County historic designation, which will give us a tax break.”
Story says Spartanburg County offers owners a reduced tax liability for a period of years to recognize that their projects are on the leading edge.
Fringe benefits
Columbia Mayor Bob Coble quips that the Olympia Mill and Granby Mill property boasts the best view in the city. All joking aside, he acknowledges the location of the lofts, a half-mile from the University of South Carolina campus and a mile from Williams-Brice Stadium, as a key factor in their success.
“USC plays a huge role in our economy, and student housing is a big part of that. It is a big plus for our community even if we can’t put a specific dollar amount to its impact,” Coble says. He says the property value of the mills has gone from $200,000 to $35 million after the renovation.
S.C. state archivist Brad Sauls pointed out to Moore that the location of Cotton Mill Place is a unique feature. Two blocks off Main Street in downtown Simpsonville, it was near a rail stop, not a water source.
“Sauls said it may have been one of the first mills to take advantage of rail-delivered coal,” Moore said. Now, the proximity to downtown shopping and dining were big selling points.
And though he doesn’t have exact figures, Moore has been doing informal tracking of the area’s development since he began construction in 2005. “I drew a map of an eight-mile radius and used a formula of $200 per square foot for commercial and $150 per square foot for residential developments. In three years, that comes to $1.2 billion in Simpsonville,” he says.
The results of the economic boost go right back into the community. Goodrich says, “You see a direct ripple in the immediate neighborhood that eventually extends beyond.”
Recalling that this idea was the driving force behind his first project more than 20 years ago in downtown Lansing, Mich., he says, “That building was the rotten core of the neighborhood. Once it was turned around, the rest had a chance to spring back.”
Goodrich, pointing to a row of mill homes just beyond Apalache Lake, says a couple from Charleston has already purchased one and plans to refurbish it.
Coble tells a similar story. “Olympia, like any mill village, is going through a transition,” he says. “Now, it is an eclectic mix of different people, very vibrant. It is a part of town that is unique and will always remain that way.”
Story sums it up. “We see absolutely no downside to this kind of redevelopment.”
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