Incentives guidelines put in place

The Columbia County Commission established guidelines this week aimed at balancing the offer of economic incentives to attract new industry with the benefit to county taxpayers.

"Lots of times people are looking to the county for economic incentives for infrastructure or taxes," county Assistant Administrator Scott Johnson said. "The commission has always viewed those very carefully to make sure we're not going to put infrastructure in for somebody unless there's a return on investment for the taxpayers."

The return, Mr. Johnson said, might include additional property and sales tax, better quality of life, private investment or new jobs.

Any company seeking incentives must provide economic projections to the county administrator's office. The staff compares the projections against potential benefits before making a recommendation to commissioners, Mr. Johnson said. "Somebody would love to say, 'Grade my site. Build my road. Put some water in there for me and I'll come,' " he said. "The county is not going to spend that kind of money until we know the expected economic impact and the feasibility of the request."

He said each request will be determined on a case-by-case basis and decided on its merits.

Richmond County officials also decide economic incentive requests on a case-by-case basis, Augusta City Administrator Fred Russell said, but those officials have no set guidelines to follow.

Columbia County Development Authority Chairman Stan Shepherd called industrial recruitment "a highly competitive" negotiation. Incentives can become a deal maker or breaker.

"For us to even be in the running for some of these industrial clients, those incentives, a lot of times, get us in the game," Mr. Shepherd said.

He agreed that incentives must be examined carefully against the possible benefits, and he supports the establishment of guidelines.

"You might be betting against the future, but if you don't, then that tax revenue may never come in," he said. "You may abate property taxes for a retail store, but you immediately bring in sales tax revenue. You have to look at the trade-offs."

Reach Donnie Fetter at (706) 868-1222, ext. 115, or donnie.fetter@augustachronicle.com.