NORTH CHARLESTON, SC (WCSC) – Charleston County Council is expected to decide whether it will join a Tax Increment Financing District, or TIF, for the redevelopment of Union Pier.

Charleston Mayor William Cogswell presented the plan back in September to the county council and officials said the county had to make a decision on whether they wanted to be a part of it by Nov. 4.

A TIF is a public financing tool designed to stimulate private investment in a blighted area. Using a TIF system means public tax dollars or funds are not used to subsidize private development.

Instead, the redevelopment uses tax revenue generated by redevelopment projects to create a space that the community can enjoy. That plan would include improving stormwater drainage, public spaces such as parks, access to the water, as well as affordable housing.

Cogswell previously said that this private investment could be worth about $2 billion with it anticipated to generate $47 million dollars in tax revenue annually in 30 years.

What that means is the taxed entities, the Charleston County School District, Charleston County, and the city of Charleston, would not start seeing that revenue come in for 30 years which is the end of the financing period.

During the TIF period, developers are paying taxes and once they begin to generate revenue it will go back into the TIF account to go back to the three entities.

Union Pier does not currently bring in any tax revenue for any of the entities.

At the county’s finance meeting earlier this month, council members said they wanted to see Union Pier redeveloped, but they just needed to make sure they were covering all of their costs first since they would be providing services to that area for the next 30 years.

Charleston County School District approved being part of the TIF Monday night. County council is expected to make their decision at Tuesday night’s meeting.

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