S*1078 Session 112 (1997-1998)
S*1078(Rat #0425, Act #0421 of 1998) General Bill, By Ryberg, Hutto, Matthews,
Moore, Setzler and Washington
Similar(H 4981)
A BILL TO AMEND CHAPTER 12, TITLE 31, CODE OF LAWS OF SOUTH CAROLINA, 1976,
KNOWN AS THE "MILITARY FACILITIES REDEVELOPMENT LAW" RELATING TO REDEVELOPMENT
AUTHORITY TO ACQUIRE AND DISPOSE OF FEDERAL MILITARY INSTALLATIONS, SO AS TO
BROADEN THE AUTHORITY TO INCLUDE ACQUISITION AND DISPOSAL OF BOTH REAL
PROPERTY AND PERSONAL PROPERTY CLASSIFIED AS EQUIPMENT, AND TO INCLUDE BOTH
FEDERAL MILITARY INSTALLATIONS AND OTHER FEDERAL DEFENSE SITES; AND TO AMEND
SECTION 12-10-88, RELATING TO REDEVELOPMENT FEES SO AS TO INCLUDE FEES
WITHHELD FROM EMPLOYEES OF A CLOSED OR REALIGNED FEDERAL DEFENSE SITE OTHER
THAN A FEDERAL MILITARY INSTALLATION BEGINNING WITH TAX YEARS AFTER
1998.-AMENDED TITLE
02/26/98 Senate Introduced and read first time SJ-7
02/26/98 Senate Referred to Committee on Labor, Commerce and
Industry SJ-7
04/14/98 Senate Committee report: Favorable Labor, Commerce and
Industry SJ-11
04/22/98 Senate Amended SJ-21
04/22/98 Senate Read second time SJ-21
04/22/98 Senate Ordered to third reading with notice of
amendments SJ-21
04/28/98 Senate Read third time and sent to House SJ-11
04/29/98 House Introduced and read first time HJ-10
04/29/98 House Referred to Committee on Ways and Means HJ-10
05/20/98 House Recalled from Committee on Ways and Means HJ-112
05/27/98 House Rejected HJ-48
05/27/98 House Motion noted- Reconsider vote whereby rejected HJ-49
05/27/98 House Reconsider vote whereby rejected HJ-82
05/27/98 House Read second time HJ-82
05/28/98 House Read third time and enrolled HJ-14
06/04/98 Ratified R 425
06/09/98 Signed By Governor
07/07/98 Effective date 06/09/98
07/07/98 Copies available
07/07/98 Act No. 421
(A421, R425, S1078)
AN ACT TO AMEND CHAPTER 12, TITLE 31, CODE OF LAWS
OF SOUTH CAROLINA, 1976, KNOWN AS THE MILITARY
FACILITIES REDEVELOPMENT LAW RELATING TO
REDEVELOPMENT AUTHORITY TO ACQUIRE AND DISPOSE OF
FEDERAL MILITARY INSTALLATIONS, SO AS TO BROADEN THE
AUTHORITY TO INCLUDE ACQUISITION AND DISPOSAL OF
BOTH REAL PROPERTY AND PERSONAL PROPERTY
CLASSIFIED AS EQUIPMENT, AND TO INCLUDE BOTH FEDERAL
MILITARY INSTALLATIONS AND OTHER FEDERAL DEFENSE
SITES; AND TO AMEND SECTION 12-10-88, RELATING TO
REDEVELOPMENT FEES SO AS TO INCLUDE FEES WITHHELD
FROM EMPLOYEES OF A CLOSED OR REALIGNED FEDERAL
DEFENSE SITE OTHER THAN A FEDERAL MILITARY
INSTALLATION BEGINNING WITH TAX YEARS AFTER 1998.
Be it enacted by the General Assembly of the State of South Carolina:
Federal defense redevelopment authority
SECTION 1. Chapter 12, Title 31 of the 1976 Code is amended to
read:
"CHAPTER 12
Redevelopment Authority to Acquire and Dispose
of Federal Military Installations and Other Defense
Sites
Section 31-12-10. This chapter may be cited as the 'Federal Defense
Facilities Redevelopment Law'.
Section 31-12-20. The General Assembly finds that:
(1) As a result of the closure, realignment, and drastic downsizing
of federal military installations and other federal defense sites in the
United States, federal property located in the State has and will become
available for the state's use. It is in the best interests of the citizens of this
State for the State, municipalities, and counties to work in concert and
oversee and dispose of federal defense facilities and other excess federal
property in an orderly and cooperative manner. It is the intent of this
chapter that redevelopment authorities may be appointed to deal with
federal defense facilities that have been scheduled for closure,
realignment, or drastic downsizing by the United States Congress and to
consult with the federal government pursuant to federal law in that
connection. If any other incidental excess federal property is included
with a scheduled closing, realignment, and drastic downsizing, that
property also may be dealt with by the authorities.
(2) The redevelopment of these facilities often may require
substantial periods of time and substantial investment in redevelopment
of the properties, including public infrastructure on the properties
themselves and in the communities immediately surrounding the
properties in order to re-integrate the former federal defense facilities into
the surrounding communities, and all reasonable means should be
provided to assist the redevelopment authorities created pursuant to this
chapter to fund improvements for redevelopment including, in the case of
properties located within incorporated municipalities, tax increment
financing as authorized by Section 14 of Article X of the Constitution of
South Carolina.
Section 31-12-30. As used in this chapter, unless the context clearly
indicates otherwise:
(1) 'Area of operation' means the area within the territorial
boundaries of the counties entitled to representation on an authority which
consists of both the real property to be disposed of by an authority as well
as any other properties disposed of directly by the federal government to
public or private persons or entities, other than disposal to the federal
government for other defense uses, in connection with military installation
closure and realignment or other federal defense site closure, realignment,
or drastic downsizing, together with such areas of the surrounding
community as may need planning for infrastructure improvements to
support the redevelopment project area.
(2) 'Authority' means a redevelopment authority created pursuant
to Section 31-12-40.
(3) 'Municipality' means an incorporated municipality of this State.
(4) 'Obligations' means bonds, notes, or other evidence of
indebtedness issued by the municipality to carry out a redevelopment
project or to refund outstanding obligations.
(5) 'Redevelopment plan' means the comprehensive program of the
authority for redevelopment intended by the payment of redevelopment
costs to redevelop properties scheduled for disposal which may tend to
return properties to the tax rolls, replace lost jobs, and integrate the
properties back into the community, enhancing the tax bases of the taxing
districts which extend into the project redevelopment area and the
economic health of the community in which it lies. Each redevelopment
plan must set forth in writing the program to be undertaken to accomplish
the objectives and must include, but not be limited to, estimated
redevelopment project costs, possible sources of funds to pay costs, the
most recent equalized assessed valuation of the project area as of the time
of creation of a tax increment finance district pursuant to Section
31-12-200, an estimate as to the equalized assessed valuation after
redevelopment, and the general land uses to apply in the redevelopment
project area.
(6) 'Redevelopment project' means buildings, improvements,
including street improvements, water, sewer and storm drainage facilities,
parking facilities, and recreational facilities. A project or undertaking
authorized under Section 6-21-50 also may qualify as a redevelopment
project under this chapter. All such projects may be owned by the
authority, the municipality, the county, or other appropriate public body.
This term includes portions of the redevelopment project located outside
the redevelopment project area so long as they provide needed
infrastructure support for the redevelopment project area.
(7) 'Redevelopment project area' means an area within the
incorporated area of a municipality and designated pursuant to Section
31-12-200, which is not less in the aggregate than one and one-half acres.
It includes both the real property to be disposed of by an authority as well
as other properties disposed of directly by the federal government to
public or private persons or entities, other than disposal to the federal
government for other defense uses, in connection with military installation
closure and realignment or other federal defense site closure, realignment,
or drastic downsizing. Redevelopment project areas designated pursuant
to Section 31-12-200 may not be counted against the limits on acreage of
redevelopment project areas within municipalities contained in Section
31-6-30(7).
(8) 'Redevelopment project costs' means and includes the total of all
reasonable or necessary costs incurred or estimated to be incurred and any
costs incidental to a redevelopment project. The costs include, without
limitation:
(a) costs of studies and surveys, plans, and specifications,
professional service costs including, but not limited to, architectural,
engineering, legal, marketing, financial, planning, or special services;
(b) property assembly costs including, but not limited to,
acquisition of land and other property, real or personal, or rights or
interests in it, demolition of buildings, and the clearing and grading of
land;
(c) costs of rehabilitation, reconstruction, repair, or remodeling
of a redevelopment project;
(d) costs of the construction of a redevelopment project;
(e) financing costs including, but not limited to, all necessary and
incidental expenses related to the issuance of obligations and which may
include payment of interest on obligations issued under the provisions of
this chapter accruing during the estimated period of construction of any
redevelopment project for which the obligations are issued and including
reasonable reserves related to them;
(f) relocation costs to the extent that a municipality determines
that relocation costs must be paid or required by federal or state law.
(9) 'Taxing districts' means counties, incorporated municipalities,
schools, special purpose districts, and any other municipal corporations
or districts with the power to levy taxes.
(10) 'Real property' includes all property assessed under authority of
Section 12-4-540 when the term is used in this chapter with regard to tax
increment financing.
(11) 'Personal property' includes all goods, classified as equipment,
used or bought for use primarily in the operation of the federal defense
facility, not to include inventory, consumer goods, or farm products, as
defined in Sections 36-2-105 and 36-9-109.
Section 31-12-40. (A) The Governor may create separate and distinct
bodies corporate and politic to be known as redevelopment authorities to
oversee the disposition of real and personal federal property that has been
or will be turned over to the State or to the redevelopment authority as
referred to in the Defense Base Closure and Realignment Act, 10 U.S.C.
2901, et seq., as it may be amended from time to time, by the federal
government or real and personal federal property that has been designated
as surplus property by the federal government and is to be disposed of by
the State or the redevelopment authority as a result of the closure,
realignment, or drastic downsizing of federal defense facilities in the
State. No more than one authority may be created with jurisdiction over
a single federal military installation or other federal defense site. Only
one authority may be designated within a county, and the Governor shall
exercise his authority under this chapter so as to ensure that the
composition of any authority created under this section is structured or
restructured in accordance with the requirements contained in this section
as additional properties may be added through other closures,
realignments, and drastic downsizings, as properties are disposed of and
as federally defined Metropolitan Statistical Areas (MSA's) are redefined,
from time to time. If an authority is designated, it is the sole
representative of the State for negotiations with the appropriate federal
authority for reuse and disposal of property.
(B) If the federal property subject to disposal is contained wholly
within one county, which county does not lie in an MSA extending over
more than one South Carolina county and is not included in a multicounty
authority under subsections (C) or (D), the authority must include:
(1) two representatives of the State, nominated by a majority of the
Senate and a majority of the House, who must be appointed by the
Governor;
(2) three representatives of the county appointed by the county
governing body;
(3) three representatives of each municipality in which the
municipality's boundaries contain all or a portion of the federal defense
properties scheduled for disposal, appointed by the municipal governing
body; and
(4) one at-large appointment by the Governor, who shall be a
resident of the county.
(C) If the federal property subject to disposal is contained within more
than one county, with no portion of the counties lying within an MSA
which extends over more than one South Carolina county, the authority
must include:
(1) two representatives of the State nominated by a majority of the
Senate and a majority of the House, who must be appointed by the
Governor;
(2) two representatives of each county appointed by the respective
county governing body;
(3) two representatives of each municipality in which the
municipality's boundaries contain all or a portion of the federal defense
properties scheduled for disposal, appointed by the respective municipal
governing body; and
(4) one at-large appointment by the Governor, who shall be a
resident of one of the counties.
(D)(1) If the federal property subject to disposal is contained wholly or
partially within a county, all or a portion of which lies in an MSA which
extends over more than one South Carolina county, the authority must
include:
(a) one representative who is a resident of each South Carolina
county which contains all or a portion of the federal property subject to
disposal, appointed by the Governor;
(b) one representative who is a resident of each South Carolina
county in the MSA not entitled to a resident representative under
subsection (D)(1)(a), appointed by the Governor;
(c) additional representatives who are residents of the respective
municipalities as may be necessary to provide any municipality within
whose boundaries the major portion of federal defense properties
scheduled for disposal lies with one less than the collective number of
representatives provided for in subsections (D)(1)(a), (D)(1)(b), and
(D)(1)(e) appointed by the Governor from a slate of candidates submitted
by the municipal governing body;
(d) if the major portion of properties scheduled for disposal lies
within a single county but not within the boundaries of any single
municipality, such additional representatives as may be necessary to
provide that county with one less than the collective number of
representatives provided for in subsections (D)(1)(a), (D)(1)(b), and
(D)(1)(e) appointed by the county governing body;
(e) one at-large appointment by the Governor, who shall be a
resident of one of the counties which lie, wholly or partially, in the MSA
which is entitled to representation under subsections (D)(1)(a),
(D)(1)(b),or (D)(1)(d);
(2) the Governor, in his discretion, may accept or reject the name
of any individual submitted for his consideration pursuant to subsection
(D)(1)(c). If the name of an individual is rejected or is not submitted to
the Senate as provided in subsection (H), the municipality may submit the
name of another individual for the Governor's consideration as provided
in subsection (D)(1)(c); and
(3) notwithstanding any other provision of law, an individual
appointed pursuant to subsections (D)(1)(a) through (D)(1)(e) may be
removed as provided in Section 1-3-240(B).
(E) A member of an authority may not be an elected official or hold
another office of honor or profit of this State or any of its political
subdivisions while serving on the authority as prohibited by the South
Carolina Constitution. Each member of an authority must comply with
the provisions of Chapter 13 of Title 8 of the 1976 Code of Laws
including the requirement to file a statement of economic interests.
(F) All executive orders of the Governor establishing any authority,
commission, committee, or other entity relating to or concerned with the
effects of the closure of a federal military installation or other federal
defense site expire on March 1, 1995. The Governor may issue no
executive order relating to the purposes of this chapter except to create or
to modify the membership of an authority as provided in Section
31-12-40.
(G) Upon the creation of an authority under the provisions of this
chapter with regard to property scheduled for disposal which was also the
subject of an executive order of the Governor issued prior to the effective
date of this act, the authority, by its resolution, may assume all or part of
the responsibilities and activities of the entity previously authorized by
the executive order.
(H) The appointments made pursuant to subsections (B)(2), (B)(3), and
(B)(4), subsections (C)(2), (C)(3), and (C)(4), and subsections (D)(1)(a),
(D)(1)(b), (D)(1)(c), (D)(1)(d), and (D)(1)(e) are subject to the advice and
consent of the Senate.
(I) An authority also may be created by resolutions of municipalities
and of counties eligible to make the majority of the appointments to an
authority pursuant to subsection (B) or (C), respectively.
(J) A vacancy occurring during the recess of the Senate may be filled
by an interim appointment by the appointing body or officer. The Senate
must be notified of the interim appointment, which must be submitted no
later than the end of the third week of its next regular session. The Senate
may give or withhold its advice and consent to an appointment at any time
after submission of the appointment, provided, that if the Senate does not
advise and consent to an appointment before sine die adjournment of that
session, the office remains vacant and the interim appointment does not
serve in holdover status notwithstanding any other provision of law to the
contrary. In no event may the same individual be reappointed by the
appointing body or officer until the term for which the interim appointee
would have served expires.
(K) A vacancy occurring while the Senate is in session, including a
vacancy occurring due to the failure of the Senate to give advice and
consent to an appointment, may be filled while the Senate is in session by
an appointment of an individual other than the one that failed to receive
advice and consent. The appointment must be transmitted to the Senate
for its consideration within one week after the appointment is made. If
the vacancy occurs prior to May 1 and the Senate does not advise and
consent to the appointment before sine die adjournment of that session,
the office remains vacant and the appointee does not serve in holdover
status notwithstanding any other provision of law to the contrary. In no
event may the same individual be reappointed until the term for which the
appointee would have served expires. If the vacancy occurs on or after
May 1, the appointee is an interim appointee and is subject to the
provisions of subsection (J).
(L) [Reserved]
Section 31-12-50. (A) The term of office for members appointed
pursuant to Sections 31-12-40(B) and 31-12-40(C) is as follows: one of
the state representatives, one of the county representatives, and one of the
municipality representatives shall serve a four-year term as designated by
the respective delegation or governing body. The other members shall
serve an initial two-year term, including the at-large appointment by the
Governor. The term of office for members appointed pursuant to Section
31-12-40(D) shall be split equally between two or four years, as
determined by lot at their first organizational meeting, other than the
appointment by the Governor pursuant to Section 31-12-40(D)(1)(e), who
shall serve an initial two-year term. After the initial terms, all members
shall serve four-year terms. Each member shall hold office until his
successor is appointed and qualified.
(B) Vacancies for the unexpired terms of a member who resigns,
ceases to be qualified, or is removed must be promptly filled in the
manner of the original appointment. A member who is guilty of
malfeasance, misfeasance, incompetency, persistent absenteeism, conflicts
of interest, misconduct, persistent neglect of duty in office, or incapacity
is subject to removal by majority vote of the appointing body upon any
of the foregoing causes being made to appear satisfactory to the
appointing body. A member is subject to removal by an appointing body,
with or without cause, upon a two-thirds vote of an appointing body. An
appointing officer may remove a member of an authority with or without
cause. A member shall receive, as the authority determines,
reimbursement for reasonable travel expenses and other out-of-pocket
expenses incurred in the discharge of the member's duties.
Section 31-12-60. (A) The Governor's at-large appointment shall
serve for a two-year term as chairman of any authority initially
established. The authority shall select its vice chairman and such other
officers as the authority may determine from its membership. The
authority shall select its chairman at all times after the initial two-year
period during which the Governor's at-large appointee serves as chairman.
(B) The authority may employ or contract with technical experts and
other agents and employees as it requires and may determine the
qualifications and compensation of these persons. A majority of the
members then in office constitute a quorum for its meeting. A member is
not liable personally for losses unless the losses are occasioned by the
wilful misconduct of the member. An authority may delegate one or more
of its members, agents, or employees any of its powers that it considers
necessary to carry out the purposes of the authority, subject always to the
supervision and control of the whole authority.
Section 31-12-70. (A) An authority is a public body, corporate and
politic, exercising public and essential governmental powers, including
powers necessary or appropriate to carry out and effectuate the purposes
and provisions of this chapter, including the following powers:
(1) to make and from time to time amend and repeal bylaws, rules,
regulations, and resolutions;
(2) to have perpetual succession;
(3) to adopt a seal;
(4) to sue and be sued;
(5) to make and execute contracts and other instruments necessary
or convenient to the exercise of the powers of the authority; and any
contract or instrument when signed by the chairman or vice chairman and
secretary or assistant secretary of the authority must be held to have been
properly executed for and on its behalf;
(6) to cooperate with any government or municipality as defined in
this title;
(7) to act as agent of the state or federal government or its
instrumentalities or agencies for the public purposes set out in this title;
(8) to prepare or cause to be prepared and adopt redevelopment
plans and to undertake and carry out redevelopment projects within its
area of operation;
(9) to arrange or contract for the furnishing or repair by any person
or agency, public or private, of services, privileges, works, streets, roads,
public utilities, or other facilities for or in connection with a
redevelopment project; provided, however, this power does not alter or
amend the rights, responsibilities, or powers of electrical utilities, electric
cooperatives, electric suppliers, municipal electric systems, or the Public
Service Authority as provided in Chapters 27 and 31 of Title 58 and
Section 5-7-60;
(10) within its area of operation, to purchase, obtain options upon,
acquire by gift, grant, bequest, devise, or otherwise, real or personal
property or any interest in it, together with any improvements on it,
necessary or incidental to a redevelopment project, to hold, improve,
clear, or prepare for redevelopment of the property, and sell, exchange,
transfer, assign, subdivide, retain for its own use, mortgage, pledge, or
otherwise encumber or dispose of real or personal property or any interest
in it, either as an entirety to a single redeveloper or in parts to several
redevelopers, to enter into contracts, either before or after the real
property that is the subject of the contract is acquired by the authority,
with redevelopers of property containing covenants, restrictions, and
conditions regarding the use of the property for residential, commercial,
industrial, or recreational purposes or for public purposes in accordance
with the redevelopment plan and such other covenants, restrictions, and
conditions as the authority may consider necessary to effectuate the
purposes of this chapter; and to provide appropriate remedies for any
breach of covenants or conditions, including the right to terminate the
contracts and any interest in the property created pursuant to them; to
borrow money and issue bonds and provide security for bonds, provided
that the authority may not pledge the full faith and credit of the State or
of any of its political subdivisions for the repayment of the bonds; to
insure or provide for the insurance of real or personal property or
operations of the authority against any risks or hazards, including the
power to pay premiums on the insurance; and to enter into contracts
necessary to effectuate the purposes of this chapter;
(11) to invest funds held in reserves or sinking funds or funds not
required for immediate disbursements, in the investments as may be
lawful for guardians, executors, administrators, or other fiduciaries under
the laws of this State; and to redeem its bonds at the redemption price
established therein or to purchase its bonds at less than redemption price,
all bonds so redeemed or purchased to be canceled;
(12) to borrow money and to apply for and accept advances, loans
evidenced by bonds, grants, contributions, and any other form of financial
assistance from the federal government, the State, county, municipality,
or other public body or from any sources, public or private, for the
purposes of this chapter, to give this security as may be required, and to
enter into and carry out contracts in connection with it;
(13) within its area of operation, to make or have made all surveys,
studies, and plans necessary to the carrying out of the purposes of this
chapter and in connection with it to enter into or upon any land, building,
or improvement on it and to make soundings, test borings, surveys,
appraisals, and other preliminary studies and investigations necessary to
carry out its powers and to contract or cooperate with persons or agencies,
public or private, in the making and carrying out the surveys, appraisals,
studies, and plans. An authority is specifically authorized to make:
(a) plans for carrying out a program of voluntary repair and
rehabilitation of buildings and improvements; and
(b) plans for the enforcement of laws, codes, and regulations
relating to the use of land, the use and occupancy of buildings and
improvements, and to the compulsory repair, rehabilitation, demolition,
or removal of buildings and improvements, subject to the approval of the
municipality, or county if not within a municipality, within which the
properties lie;
(14) to make expenditures as may be necessary to carry out the
purposes of this chapter and to make expenditures from funds obtained
from the federal government;
(15) to perform redevelopment project undertakings and activities in
one or more contiguous or noncontiguous redevelopment areas that are
planned and carried out on the basis of annual tax increments in
accordance with the remaining provisions of this chapter.
(B) In carrying out a redevelopment project, an authority may:
(1) with or without consideration and at private sale, in accordance
with the redevelopment plan, convey real property to the municipality,
county, or other appropriate public body to be laid out for streets, alleys,
and public ways;
(2) with or without consideration convey at private sale, in
accordance with the redevelopment plan, grant, or dedicate easements and
rights-of-way for public utilities, sewers, streets, and other similar
facilities;
(3) with or without consideration and at private sale, in accordance
with the redevelopment plan, convey to a municipality, county, or other
appropriate public body, real property to be used for parks, schools,
public buildings, facilities, or other public purposes; and
(4) temporarily rent or lease, operate, or maintain real property in
a redevelopment area, whether or not in accordance with the
redevelopment plan and pending the disposition of the property for
redevelopment, as may be deemed appropriate.
(C) In developing its redevelopment plans, an authority must:
(1) take into account the needs of the surrounding community;
(2) attempt to integrate the redevelopment of the properties
scheduled for disposition with any adjacent areas; and
(3) consider the extent to which the plan compliments the existing
development of the community, the competitive effect on existing
businesses in the community, and the compatibility of the redevelopment
with the community. To that end, and with the consent and concurrence
of the local governing body having planning and zoning authority over
the surrounding areas, the authority may prepare and implement plans for
public infrastructure or other improvements which would be authorized
under the Community Development Law for a municipality in those areas.
(D) In furtherance of its purposes, an authority may issue revenue
bonds, the interest on which may or may not be excludable from gross
income for federal income tax purposes, for the purpose of raising funds
needed from time to time for the financing or refinancing, in whole or in
part, of the acquisition, construction, equipping, maintenance, and
operation of any facility, building, structure, or any other matter or thing
which the authority is authorized to acquire, construct, equip, maintain,
or operate.
Section 31-12-80. (A) A public body, including the State and any
political subdivision or any public or quasi-public entity or affiliated
corporate entity by whatever name whose board is appointed pursuant to
an act of the General Assembly, upon such terms, with or without
consideration, for the purpose of aiding and cooperating in the planning,
undertaking, or carrying out of a redevelopment project located within the
area in which it is authorized to act, may:
(a) dedicate, sell, convey, or lease any of its interest in any
property, or grant easements, licenses, or any other rights or privileges to
an authority;
(b) cause parks, playgrounds, recreational, community, education,
water, sewer, or drainage facilities, or any other works that it is otherwise
empowered to undertake, to be furnished in connection with a
redevelopment project;
(c) furnish, dedicate, close, vacate, pave, install, grade, regrade,
plan or replan streets, roads, sidewalks, ways, or other places that it is
otherwise empowered to undertake;
(d) plan or replan any part of the redevelopment;
(e) cause administrative and other services to be furnished to the
authority of the character which the public body is otherwise empowered
to undertake or furnish for the same or other purposes;
(f) enter into an agreement to pay fees in lieu of taxes as to any
properties it might use, own, or acquire located within the redevelopment
project area, not to exceed amounts which would otherwise be paid if the
properties were not tax exempt, and upon approval of the municipal
governing body, the fees may be pledged for the repayment of tax
increment finance obligations issued pursuant to this chapter;
(g) enter into an agreement to fund public infrastructure
improvements as a part of redevelopment project in amounts as may
represent anticipated savings in capital or operating expenditures of the
public body due to its acquisition of properties scheduled for disposition
as a part of the redevelopment project; and
(h) do any and all things necessary or convenient to aid and
cooperate in the planning or carrying out of a redevelopment plan.
(B) A sale, conveyance, or agreement provided for in this section may
be made by a public body without public notice, advertisement, or public
bidding.
Section 31-12-90. Notwithstanding any provision of law, neither the
State nor any political subdivision or any public or quasi-public entity or
affiliated corporate entity by whatever name whose board is appointed
pursuant to an act of the General Assembly or any nonprofit public or
nonprofit private corporation chartered for the purpose of furthering
economic development may make a profit on the sale of real or personal
property to a redevelopment authority created pursuant to this chapter; nor
may any monies from the authority's assets developed through the sale,
lease, or fees generated from the profits be transferred to any government
entity above, beyond, or outside of the authority itself, except as may be
required or permitted by applicable provisions of the Defense Base
Closure Realignment Act, 10 U.S.C. 2901, et seq., as it may be amended
from time to time.
Section 31-12-100. (A) An authority created pursuant to this chapter
may dissolve the authority by a two-thirds vote of the entire number of
authorized members if no property remains for redevelopment or if the
authority decides to transfer the remaining redevelopment properties to
another public body or successor entity created by statute.
(B) Final dissolution may occur only upon sale of all properties to the
private sector or conveyance to another public entity described in
subsection (A) with the lawful power to receive real and personal property
held by the authority and the satisfaction of all outstanding obligations of
the authority or their lawful assumption by another public entity described
in subsection (A).
(C) Upon a determination to dissolve, the authority may dispose of any
tangible or intangible property remaining after transfer of any remaining
redevelopment properties as provided by law or in the following manner:
(1) tangible personal property and cash or similar instruments held
by the authority must be distributed to the local governmental entities
which nominated members to the authority; and
(2) disbursement of assets must be based on the cash value of all
assets and must be distributed in reimbursement to local government
entities which have contributed cash funds or capital assets in proportion
to the dollar value of contributions made by the government entities that
have not been otherwise recovered by the contributing governmental
entity through direct revenues.
(D) The authority must keep annual and permanent records of cash
contributions and the value of in-kind donations of the governmental
entities, and the records must be used to determine the distribution of
assets of the authority based on the net present value of the contributions
at the time it is dissolved.
Section 31-12-110. Notwithstanding any provision of law or
regulation, an authority is an 'agency' for purposes of Chapter 78 of Title
15.
Section 31-12-120. Notwithstanding any provision of law or
regulation, an authority must comply with the provisions of Chapter 35
of Title 11, South Carolina Consolidated Procurement Code, and the
related regulations issued by the Budget and Control Board. If a
provision of this chapter is inconsistent with a provision of the
Procurement Code or regulation, the Procurement Code and regulation
control.
Section 31-12-200. Upon creation of a redevelopment authority by
the Governor, properties scheduled for disposal within a particular
municipality, whether contiguous or not, including to the extent that the
State may then or afterwards have or acquire jurisdiction, all properties
over which the State has ceded jurisdiction in whole or in part to the
United States of America, and including both the real property to be
disposed of by an authority as well as any other properties disposed of
directly by the federal government to public or private persons or entities,
other than disposal to the federal government for other federal defense
uses, in connection with military installation closure and realignment or
other federal defense site closure, realignment, or drastic downsizing,
without further action being necessary, constitute a tax increment finance
district in accordance with the remaining provisions of this chapter.
Section 31-12-210. (A) Obligations secured by the special tax
allocation fund set forth in Section 31-12-270 for the redevelopment
project area may be issued by the municipality upon the request of the
authority to provide for redevelopment project costs. The obligations
must be retired in the manner provided in the ordinance authorizing the
issuance of the obligations by the receipts of taxes levied as specified in
Section 31-12-270 against the taxable property included in the area and
other revenue as specified in Section 31-12-310 designated by the
municipality or by the authority, which source does not involve revenues
from any tax or license.
(B) In the ordinance authorizing the issuance of the obligations the
municipality may pledge all or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant to Section
31-12-270 to the payment of the redevelopment project costs and
obligations. A pledge of funds in the special tax allocation fund must
provide for distribution to the taxing districts of monies not required for
payment and securing of the obligations and the excess funds are surplus
funds. In the event a municipality pledges only a portion of the monies
in the special tax allocation fund for the payment of redevelopment
project costs or obligations, any funds remaining in the special tax
allocation fund after complying with the requirements of the pledge also
are considered surplus funds. All surplus funds must be distributed
annually to the taxing districts in the redevelopment project area by being
paid by the municipality to the county treasurer of the county in which the
municipality is located. The county treasurer immediately shall make
distribution to the respective taxing districts in the same manner and
proportion as the most recent distribution by the county treasurer to the
affected districts of real property taxes from real property in the
redevelopment project area.
(C) In addition to obligations secured by the special tax allocation
fund, the municipality, with the concurrence of the authority evidenced
by its resolution, may pledge for a period not greater than the term of the
obligations toward payment of the obligations any part of the revenues
remaining after payment of operation and maintenance, of all or part of
any redevelopment project.
(D) The governing body of the municipality may provide that the
obligations may:
(1) be issued in one or more series;
(2) bear a date or dates;
(3) mature at a time or times not exceeding thirty years from their
respective dates;
(4) bear a rate or rates of interest as the governing body shall
determine;
(5) be in a denomination or denominations;
(6) be in either coupon or registered form;
(7) carry registration and conversion privileges;
(8) be executed;
(9) be payable in a medium of payment, at a place or places;
(10) be subject to terms of redemption, with or without premium;
(11) be declared or become due before the maturity date;
(12) provide for the replacement of mutilated, destroyed, stolen, or
lost bonds;
(13) be authenticated in a manner and upon compliance with
conditions and
(14) contain other terms and covenants.
(E) If the governing body determines to sell obligations, the
obligations must be sold at public or private sale in a manner and upon
terms as the governing body considers best for the interests of the
municipality.
(F) The obligations must be issued within fifteen years of the creation
of the tax increment finance district in accordance with Section
31-12-200.
(G) A certified copy of the ordinance authorizing the issuance of the
obligations must be filed with the clerk of the governing body of each
county and treasurer of each county in which any portion of the tax
municipality is situated and constitutes the authority for the extension and
collection of the taxes to be deposited in the special tax allocation fund.
(H) A municipality also may issue its obligations to refund in whole
or in part obligations previously issued by the municipality under the
authority of this chapter, whether at or before maturity, and all references
in this chapter to 'obligations' include these refunding obligations.
(I) The debt incurred by a municipality pursuant to this chapter is
exclusive of any statutory limitation upon the indebtedness a taxing
district may incur. All obligations issued pursuant to this chapter must
contain a statement on the face of the obligation specifying the sources
from which payment is to be made and must state that the full faith, credit,
and taxing powers are not pledged for the obligations.
(J) The trustee or depositary under any indenture may be persons or
corporations as the governing body designates, and may be nonresidents
of South Carolina or incorporated under the laws of the United States or
the laws of other states of the United States.
Section 31-12-250. The proceeds from obligations issued under
authority of Sections 31-12-200 through 31-12-320 of this chapter must
be applied only for the purpose for which they were issued. Any premium
and accrued interest received in a sale must be applied to the payment of
the principal of or the interest on the obligations sold. A portion of the
proceeds not needed for redevelopment project costs must be applied to
the payment of the principal of or the interest on the obligations.
Section 31-12-260. The obligations authorized by this chapter and
the income from the obligations and all security agreements and
indentures executed as security for the obligations made pursuant to the
provisions of this chapter and the revenue derived from the obligations are
exempt from all taxation in the State of South Carolina except for
inheritance, estate, or transfer taxes, and all security agreements and
indentures made pursuant to the provisions of this chapter are exempt
from all state stamp and transfer taxes.
Section 31-12-270. (A) A municipality, after the adoption of an
ordinance pursuant to Section 31-12-280 concurring in an authority's
redevelopment plan, may issue obligations under this chapter upon the
request of the redevelopment authority to finance the redevelopment
project upon adoption of an ordinance requiring that:
(1) after the issuance of the obligations; and
(2) after the total equalized assessed valuation of the taxable real
property in a redevelopment project area exceeds the certified 'total initial
equalized assessed value' established in accordance with Section
31-12-300(B) of all taxable real property in the project area, the ad
valorem taxes, if any, arising from the levies upon taxable real property
in the project area by taxing districts and tax rates determined in the
manner provided in Section 31-12-300(B) each year after the obligations
have been issued until obligations issued under this chapter have been
retired and redevelopment project costs have been paid must be divided
as follows:
(a) that portion of taxes levied upon each taxable lot, block, tract,
or parcel of real property which is attributable to the total initial equalized
assessed value of all taxable real property in the redevelopment project
area must be allocated to, and when collected must be paid by the county
treasurer to, the respective affected taxing districts in the manner required
by law in the absence of the adoption of the redevelopment plan; and
(b) that portion, if any, of taxes which is attributable to the
increase in the current total equalized assessed valuation of all taxable real
property in the redevelopment project area above the total initial equalized
assessed value of taxable real property in the redevelopment project area
must be allocated to, and when collected must be paid to, the municipality
which must deposit the taxes into a special fund called the special tax
allocation fund of the municipality for the purpose of paying
redevelopment project costs and obligations incurred in the payment of
the costs and obligations. The municipality may pledge in the ordinance
the funds in and to be deposited in the special tax allocation fund for the
payment of the costs and obligations.
(B) When obligations issued under this chapter have been retired and
redevelopment project costs incurred under this chapter have been paid or
budgeted pursuant to the redevelopment plan, as evidenced by resolution
of the governing body of the municipality, concurred in by resolution of
the authority, all surplus funds remaining in the special tax allocation fund
must be paid by the municipal treasurer to the county treasurer.
Immediately after receiving the payment, the treasurer shall pay the funds
to the taxing districts in the redevelopment project area in the same
manner and proportion as the most recent distribution by the treasurer to
the affected districts of real property taxes from real property in the
redevelopment project area.
(C) Upon the payment of all redevelopment project costs, retirement
of all obligations of a municipality issued under this chapter, and the
distribution of any surplus monies pursuant to this section, at least fifteen
years having passed since the creation of the tax increment finance district
pursuant to Section 31-12-200, the municipality must adopt an ordinance
dissolving the tax allocation fund for the project redevelopment area and
terminating the designation of the redevelopment project area as a
redevelopment project area for purposes of this chapter. After that, the
rates of the taxing districts must be extended and taxes levied, collected,
and distributed in the manner applicable in the absence of the adoption of
a redevelopment plan and the issuance of obligations under this chapter.
Section 31-12-280. (A) Before the issuance of obligations under this
chapter, the municipality must set forth by way of ordinance the
following:
(1) a copy of the redevelopment plan of the authority;
(2) a statement indicating the need for and proposed use of the
proceeds of the obligations in relationship to the redevelopment plan;
(3) a list of all real property in the redevelopment project area; and
(4) a statement of the estimated impact of the redevelopment plan
upon the revenues of all taxing districts in which a redevelopment project
area is located.
(B) Before approving the issuance of obligations under this chapter,
the governing body of the municipality must hold a public hearing on the
redevelopment plan after published notice in a newspaper of general
circulation in the county in which the tax increment finance district is
located not less than fifteen days and not more than thirty days before the
hearing. The notice must include:
(1) the time and place of the public hearing;
(2) a notification that all interested persons will be given an
opportunity to be heard at the public hearing;
(3) a description of the redevelopment project area, the
redevelopment plan, and the redevelopment project; and
(4) the maximum estimated term of obligations to be issued at that
time.
(C) Not less than forty-five days before the date set for the public
hearing, the municipality must give the same notice to all taxing districts
of which taxable property is included in the redevelopment project area.
(D) Adoption of an ordinance approving the issuance of obligations
under this chapter does not preclude amendments to the redevelopment
plan of the authority and the proceeds of obligations issued may be
applied to the implementation of the amended redevelopment plan.
Section 31-12-290. During the existence of the special tax allocation
fund created pursuant to this chapter, funds not otherwise expended may
be carried forward from year to year to be applied to future years'
obligations and are not surplus funds subject to distribution under the
provisions of Section 31-12-270 unless determined otherwise by
resolution of the authority.
Section 31-12-300. (A) If a municipality authorizes by ordinance the
issuance of obligations pursuant to Section 31-12-210, the auditor of the
county in which the municipality is situated, immediately after adoption
of the ordinance pursuant to Section 31-12-210 and upon request of the
municipality, shall determine and certify:
(1) the most recently ascertained equalized assessed value of all
taxable real property within the redevelopment project area, as of the date
of creation of the authority pursuant to Section 31-12-200 or the date the
properties were scheduled for disposal by final action of the federal
government in the case of properties added after the date of creation of the
authority, which value is the 'initial equalized assessed value' of the
property; and
(2) the total equalized assessed value of all taxable real property
within the redevelopment project area and certifying the amount as the
'total initial equalized assessed value' of the taxable real property within
the redevelopment project area.
(B)(1) After the county auditor has certified the total initial equalized
assessed value of the taxable real property in the area, then in respect to
every taxing district containing a redevelopment project area, the county
auditor or any other official required by law to ascertain the amount of the
equalized assessed value of all taxable property within the district for the
purpose of computing the rate percent of tax to be extended upon taxable
property within the district, shall ascertain, in every year that obligations
are outstanding for redevelopment projects in the redevelopment area, the
amount of value of taxable property in a project redevelopment area by
including in the amount the certified total initial equalized assessed value
of all taxable real property in the area instead of the equalized assessed
value of all taxable real property in the area.
(2) The rate percent of tax determined must be extended to the
current equalized assessed value of all property in the redevelopment
project area in the same manner as the rate percent of tax is extended to
all other taxable property in the taxing district. The method of extending
taxes established under this section terminates when the municipality
adopts an ordinance dissolving the special tax allocation fund for the
redevelopment project.
Section 31-12-310. (A) Revenues received by the municipality or
authority from any property, building, or facility owned by the
municipality or authority, or any agency or authority established by the
municipality, in the redevelopment project area may be used to pay
redevelopment project costs or reduce outstanding obligations of the
municipality incurred under this chapter for redevelopment project costs.
If the obligations are used to finance the extension or expansion of a
system as defined in Section 6-21-40 in the redevelopment project area,
all or a portion of the revenues of the system, whether or not located
entirely within the redevelopment project area, including the revenues of
the redevelopment project, may be pledged to secure the obligations
issued under this chapter.
(B) The municipality is fully empowered to use any of the powers
granted by either or both of the provisions of Chapter 17 of Title 6, The
Revenue Bond Refinancing Act of 1937, or the provisions of Chapter 21
of Title 6, Revenue Bond Act for Utilities. In exercising the powers
conferred by the provisions, the municipality may make any pledges and
covenants authorized by the provisions of those chapters. The
municipality may place the revenues in the special tax allocation fund or
a separate fund which must be held by the municipality or financial
institution designated by the municipality.
(C) Revenue received by the municipality or authority from the sale
or other disposition of real property acquired by the municipality or
authority with the proceeds of obligations issued under the provisions of
this chapter must be deposited by the municipality or authority in the
special tax allocation fund of the municipality or a separate fund which
must be held by the municipality or authority or a financial institution
designated by the municipality or authority, with the proceeds used to
discharge the obligations issued pursuant to this chapter, or otherwise, to
further the purposes of the redevelopment project.
(D) Proceeds of grants may be pledged by the municipality and
deposited in the special tax allocation fund or a separate fund.
Section 31-12-320. If the redevelopment project area is located
within more than one municipality, the municipalities may approve jointly
a redevelopment plan and authorize obligations as provided under the
provisions of this chapter."
Redevelopment fees with effective dates
SECTION 2. A. Section 12-10-88(E) of the 1976 Code, as added by
Act 462 of 1996, is amended to read:
"(E) For purposes of this section 'closed or realigned military
installation' means a federal defense site in which permanent employment
was reduced by three thousand or more jobs after December 31, 1990, or
a federal military base or installation which is closed or realigned under:
(1) the Defense Base Closure and Realignment Act of 1990;
(2) Title 11 of the Defense Authorization Amendments and Base
Closure and Realignment Act; or
(3) Section 2687 of Title 10, United States Code."
B. This section is effective for tax years beginning after 1998.
Time effective
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 9th day of June, 1998. |