February 28, 2006

Economic development office seeks additional funding

By Jenny Hartley - Staff Writer

County officials cut the ribbon on a $7.5 million investment in Lancaster County on Thursday at the grand opening of Sharonview Credit Union in Indian Land.

In the past 18 months, 10 industries and businesses have either announced multi-million dollar moves to Lancaster County, or thousands in expansion here.

Lancaster County Economic Development Corp. President Keith Tunnell has had a hand in arranging these deals, and now he wants more.

Tunnell has asked County Council to add another $100,000 to the $82,000 it funds the nonprofit corporation already.

Right now, with council's funding, $9,758 from the city of Lancaster, $2,037 from the town of Kershaw and $1,019 from the town of Heath Springs, plus membership dues, the corporation's budget is about $205,000. That includes salary and benefits for Tunnell and secretary Mary Cloud.

"We're under-funded and understaffed," Tunnell said.

The average economic development agency in the Charlotte Regional Partnership, a 16-county economic development agency in the Charlotte region that includes Lancaster County, has an annual budget of $325,000, Tunnell said.

With the additional funding he's requested, Tunnell said an assistant economic development director would be hired. The assistant, whose salary would range from $37,000 to $40,000, would take over some of Tunnell's project load, and put together a marketing plan for Kershaw and Heath Springs.

The assistant would also design and implement a program for existing businesses and industries, and assist those companies with tax problems, or concerns with local and state government decisions.

The new employee would serve as a liaison between York Technical College and the local S.C. Employment Service in finding job-training opportunities for local workers.

"A lot of companies don't know what's available to them, and that's our fault," Tunnell said.

The assistant would also generate leads on new industry and businesses through the state Department of Commerce, the regional partnership and the corporation itself.

While the corporation has not officially asked for more funding from the county's municipalities, Tunnell said that funding has not been increased in several years.

The corporation's board is also looking into a new membership structure that would charge $250, $500, $750 and $1,000 in annual membership dues based on the size of the company. Right now, membership costs $250.

The work the Lancaster County Economic Development Corp. does for the county is worth the increases, Tunnell said.

In the last 18 months, two existing businesses - AccuTrex and Davis Neon Signs - have undergone a total of $1.8 million in expansions.

Eight other businesses and industries have announced plans to or have moved here, making for a total $144 million in investments, which will mean $1,143,084 in new property taxes for the county for their first year in business, records show.

The expansions and relocations will bring about 1,000 new jobs to the county, and transfer another 500 to Lancaster County.

Tunnell said he's working on 34 active projects and has met with six commercial real-estate brokers in the past month.

He said he's also working on the county's spec building program and writing three grants for infrastructure at Kershaw's industrial park off U.S. 601.

County Administrator Chap Hurst said he believes the recent accomplishments of Lancaster County Economic Development Corp. could be even greater if Tunnell had assistance.

"We have more prospects now than in the history of the county," Hurst said. "Keith's physically limited by the places he can be at one time."

Hurst said when he builds the county's 2006-07 budget for presentation to County Council, it will include the extra $100,000.

At least one council member believes the funding is appropriate.

County Council Chairman Alston DeVenny said the county's economic- development efforts have improved and gained more efficiency since the agency was revamped over the past three years. Still, DeVenny said Tunnell needs an assistant.

"We have so many inquires, and we don't want to lose an opportunity," he said.