Lowcountry Economic Network's Presentation to Hilton Head Island Area Association of Realtors

www.lowcountrynet.org

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Lowcountry Economic Lowcountry Economic Network & AllianceNetwork & Alliance

Economic Development Seminar

Hilton Head Association of Realtors

December 10, 2009


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Who We Are?Who We Are?

• The Lowcountry Economic Network & Alliance, is a public-private partnership whose primary purpose is to provide comprehensive business development and recruitment services to organizations looking to relocate or expand their business in Beaufort and Jasper counties and deliver quality jobs in a quality lifestyle.


Services We ProvideServices We Provide• Information regarding demographics, available

land, buildings and build-to-suit facilities • Scheduling of site visits • Incentive analysis, guidance and preparation • Planning and permitting• Support with workforce development assistance

and direction • Ongoing business advocacy

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MissionMission

• The Network and Alliance's mission is "To promote and assist with quality, sustainable growth and economic development through an alliance with the private sector, creating career path opportunities and expanding the business tax base of Beaufort and Jasper counties." The Lowcountry Economic Network & Alliance, a business development and recruitment network, is a fully connected resource that fosters & manages current and future economic prosperity while maintaining the Lowcountry’s atmosphere & lifestyle.

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Goals and ObjectivesGoals and Objectives

• The goals of the Network & Alliance are to reduce the ever-growing burden of residential property taxes on the residents within the counties by strengthening and expanding the business tax base and to provide quality, value-added jobs for Beaufort and Jasper counties while promoting the region's sustainable and "green" lifestyle.

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MarketingMarketing

• Recognized branding requires aggressive marketing:– online GIS system to search available product– strategic print and electronic advertising– extended media outreach – blogs, Twitter,

Facebook, etc. - Pecha Kucha Night #2 –Hilton Head

www.pknbeaufort.com - October 8

• Strategy is already paying off


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The Network’s annual presentation has been viewed online almost 300 times.

http://www.lowcountrynet.org/annualvideo


Economic Development Economic Development Priority AreasPriority Areas

• Aeronautics(MCAS, Boeing)• Knowledge Intensive• Logistics/Distribution(Jasper Port)• Green Businesses(Alternative

Energy)

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Prospect Traffic Prospect Traffic • The Lowcountry has been

discovered!– DOC identified Lowcountry for 5

potential projects in last 3 months:knowledge-intensive (2 prospects)manufacturing (2 prospects)distribution (1 prospect)

– Actively working 25+ serious prospects, plus 3 smaller enquiries


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Prospect TrafficProspect TrafficRecent DOC RFI Criteria• Local college or university• Available water supply of 18 – 25 million gallons per year• Within 2 hours of a major urban area with commercial

airport• Population between 30,000 – 300,000 individuals• Progressive – culturally, environmentally, politically, culinary• Outdoor centric• Environmentally focused• Quality workforce• Reliable and affordable utilities; progressive utility providers• Availability of potential facility locations


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Potential JobsPotential Jobs• Active enquiries count 1,304 jobs

540

325

165

85

89

100

Green

Healthcare

Headquarters

Knowledge-Intensive

Manufacturing

Production


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Prospect CultivationProspect Cultivation

• Marketing and target industry focus yielding strong prospect interest

• Ongoing efforts include:- site selection conferences- ‘behind the gates campaign’


December Prospect December Prospect ActivityActivity

Project SpecterProject Specter• Metal Works and Manufacturing• 50-55 Jobs• Real Estate Needs: 20,000 square

feet of industrial space and a separate 5,000 square feet of showroom

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December Prospect December Prospect ActivityActivity

Project AquaProject Aqua• Alternative Energy Company• 25-30 jobs• Real estate needs: 200-1000 Acres

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Product DevelopmentProduct Development

Prospects need available space or acreage:

Beaufort Commerce Park• Excavation and construction of master

stormwater system underway• proposals received to construct outlet

structures to complete gateway ponds• positioning Park for aeronautics target industry


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Product DevelopmentProduct DevelopmentMunicipalities• Identifying infill opportunities in the City, Port Royal,

Bluffton and Hilton Head• Target industries: knowledge-intensive and greenJasper• Adding available product in County and Hardeeville

to GIS• Identifying priority areas for economic development• Jasper Ocean Terminal and logistics industry focus


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Business Friendly Business Friendly EnvironmentEnvironment

• Objective:– assist local and county governments in

the development and improvement of policy which directly affects existing business and business recruitment


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Business Licenses• review of current proposed amendments

to County Ordinance• recommend proposed modifications to

consolidate and simplify local and county BLF processes and classifications

• recommend reduced rate schedule for target industries and caps for very high revenue companies


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Green Incentives• Objective to position region’s environmental

sensitivity and develop incentives to encourage green development, green businesses and green jobs:– density & height bonuses, impervious surface (parking)

reductions– reduced fee/permitting costs– expedited permitting– Green Overlay District– state and local tax credits


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County Level• Drafted Comprehensive Plan Economic Development chapter

focusing recommendations on target industries and environmentally sensitive, business friendly community

• Participating in Airports Master Plan data gathering

Municipal Level• Provided input for economic development sections of City and

Hilton Head proposed comprehensive plans• Developed proposed set of economic development

recommendations for the Town of Hilton Head Island


Basic IncentivesBasic Incentives

• Fee in Lieu of Tax(“FILOT)• Effective to offset the property tax liability of

manufacturers (normally pay 10.5% on all assets) or other commercial enterprises (normally pay 10.5% on personal property). A FILOT also locks the millage rate against future

increases.

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• Multi-County Industrial Park (“MCIP”)• This incentive is often requested by investors

seeking a FILOT. By being located within a MCIP, an investor is able to increase the value of its benefits under the State’s Job Tax Credit program (no liability to the County). In addition, location within an MCIP can increase infrastructure credit benefits

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• Infrastructure Credits• These credits may be offered in tandem with a

FILOT or as a standalone incentive. Credits, which are taken against an investor’s property tax liability, may be utilized under State law to offset an investor’s qualifying infrastructure-related expenditures: including improvements to utilities serving a project site, real estate expenditures and costs relating to improving real estate.

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• Job Development Credit• A Job Development Credit (JDC) is a discretionary,

performance-based incentive that rebates a portion of new employees' withholding taxes that can be used to address the specific needs of individual companies. JDCs are approved on a case-by-case basis by the S.C. Coordinating Council for Economic Development (CCED). To qualify, a company must meet certain business requirements and the amount a company receives depends on the company's pay structure and location.

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• Job Tax Credit• The Job Tax Credit (JTC) is a statutory incentive offered to

companies, both existing and new, that create new jobs in the state. The credit is available to companies that establish or expand corporate headquarters, manufacturing, distribution, processing, qualified service-related, research and development facilities. This credit is extremely beneficial for companies, because it is a credit against corporate income taxes, which can eliminate 50% of a company's liability.

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How You can HelpHow You can Help

• Assistance in identifying “rehab” product

• Identify current product deficiencies(call center’s, industrial,etc)

• Spec building opportunities• Promote our region’s economic

development priority areas

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How We Can HelpHow We Can Help

• Provide exposure for your listing on our comprehensive GIS Website

• Develop an incentive analysis tailored to your specific business prospect’s needs to help you close more deals

• Keep you informed regarding prospect traffic and current economic development trends

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Q & AQ & A

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Website DemonstrationWebsite Demonstration

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Listing Fee StructureListing Fee Structure

• $100-annual fee per listing(up to 5)• $500-unlimited listing ability as well

as all “friend” level benefits

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Lowcountry Economic Network's Presentation to Hilton Head Island Area Association of Realtors

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Transcript of Lowcountry Economic Network's Presentation to Hilton Head Island Area Association of Realtors