York County Council unanimously approved second reading of a $1.5 billion fee-in-lieu of tax agreement with Octapharma on June 29, but not before a contentious 5-2 vote to restructure who absorbs the cost of the tax break. The amendment, introduced by Councilman William “Bump” Roddey, cuts Rock Hill Schools’ share of the tax sacrifice from 50 percent to 31.9 percent and shifts the difference entirely onto the city of Rock Hill, requiring the city to give up 100 percent of its potential property tax revenue from the project. The change does not alter the incentive Octapharma receives. What changed is who pays for it.
The amendment creates a significant complication. Rock Hill City Council passed its own resolution on June 22, providing conditional consent to the project’s inclusion in the York-Chester multi-county industrial park and to the fee-in-lieu agreement. But the city’s consent was tied to receiving its proportional share of the tax revenue. The county’s amendment effectively strips that share away entirely. That means the June 22 resolution is no longer sufficient. Rock Hill City Council must now take a new vote specifically authorizing the restructured terms before the agreement can be finalized. Whether the city does so is not certain.
If Rock Hill City Council declines to approve the amended terms, and York County Council does not revisit its position, the Octapharma project as currently structured could collapse. Third reading at York County Council is scheduled for July 13…