The City of Abbeville, through economic development incentives, will promote the development of new businesses and retention of existing businesses through the establishment of an Economic Incentive Program. The program is designed to provide opportunities for for-profit businesses to apply for grants, reimbursements, and utility incentives to assist in developing their businesses for commercial, productivity, safety and energy efficiency purposes. Creating a more conducive environment for commercial development and growth is vital to long-term sustainability for the City of Abbeville.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

1.

New Business - Businesses that have just opened, changed ownership or have been open for up to three years.

2.

Existing Business - Businesses that have been in the City of Abbeville, under current ownership for three years, one day, or more.

3.

Equity - Total grants and private dollars brought to a project by a borrower from any source other than the City of Abbeville.

4.

Private Commitment - A commitment of funds needed for a project obtained from a bank, other lending institution, or legitimate private source.

5.

Private to Public Dollar Leveraging Ratio - The amount of private dollar investment, either through private commitment and/or a participating lender in a project in relation to the amount of public funds invested.

6.

Small Business - A small business is a business which has 15 or fewer full-time employees.

7.

Target Area - From time-to-time the City may target a specific geographical area, census tract, corridor, or business type for funding. Such a designation will be considered a target area.

8.

Historic District - The City of Abbeville Historic District as designated in the City of Abbeville zoning map.

9.

HPPC - Historic Properties Protection Commission.

10.

Fair Market Value - Appraised value as certified to the HRB by a real estate appraiser licensed by the State of South Carolina, the sales price as delineated in a bona fide contract of sale within twelve (12) months of the time it is submitted, or the most recent appraised value published by the Abbeville County tax assessor.

11.

Total Project Cost - Total direct costs incurred to carry out a project.

12.

Small Business Grant - Non-repayable funds for approved initiatives.

13.

Incentive - Investment Reimbursement, Rate Reduction, Tax Assessment, or other Incentive designed to provide for the development and growth of the City of Abbeville.

14.

Applicant - Business or individual applying for a Small Business Grant or requesting a Development Incentive from the City of Abbeville.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

Small Business Grants: All grant totals are dependent on budgetary constraints.

15.

Energy Efficiency Grant: A grant awarded to a commercial property owner that implements an energy efficiency improvement to their building.

16.

New Business Grant: A grant awarded to an eligible new business.

17.

Existing Grant Program: A grant awarded to an eligible existing business in the City of Abbeville.

18.

The Historic District Building Improvement Grant: A grant awarded to a for-profit commercial property in the City of Abbeville Historic District.

Bailey Bill: Reference Ordinance No. 1-2021.

19.

Special tax assessment for eligible rehabilitated historic properties for a period of ten (10) years.

20.

Property must be in historic district or be listed on the National Register of Historic Places.

21.

Rehabilitation must be equal to or exceed fifty (50) percent of the fair market value of the property.

22.

Proposed rehabilitation work receives approval from the HPPC.

Utility Incentive: Only effects New Businesses that have just opened or properties over 15,000 sq. ft.

23.

Requires a minimum seventy-five (75) percent investment back into a commercial property or a $750,000 minimum total project cost (private investment).

24.

Project must result in the creation of new jobs.

25.

The Utility Incentive is a rate reduction in agreed upon utilities for a maximum of two (2) years. (Two-year cap not applicable to Industrial Customers)

a)

Rate may not be less than the City's cost plus 2% for the provision of the specific utility.

26.

Only goes into effect once construction is complete and business is open.

27.

Applicants' past utility credit history helps determine eligibility for incentive.

28.

Utility Incentive recipients are not required to be Small Businesses as defined in Section 10-2.

Large Investment Incentive

29.

Requires a minimum total project cost (private investment) of $750,000 into a commercial property that has been deemed to have significant economic, historical, and/or cultural value to the City of Abbeville and that without a substantial and immediate public/private investment would likely deteriorate beyond a usable condition not only rendering the commercial property in question nonviable and in a blighted condition, but also damaging the value and viability of surrounding properties as well.

30.

Incentive given on a reimbursement basis.

31.

Project must result in new housing or jobs.

32.

Submitted to Council for approval.

33.

Large Investment Incentive Recipients are not required to be Small Businesses as defined in Section 10-2 and are not eligible for the Small Business Grants outlined in Section 10-3 once the Large Investment Incentive Reimbursement has been distributed.

Small Business Incubator:

34.

The leasing of commercial space owned by the City as an Economic Development Tool. Leasing rate and terms to be outlined in City Policy and Procedures. Prospective tenants are required to submit an application with the requested documentation.

Reimbursement for New Property Development and Subdivision Infrastructure: Reference Ordinances 10-11-2021.

35.

Reimbursement by the City for certain expenses in connection with commercial, industrial and residential property development.

36.

See Ordinances 10 & 11-2021 for process and details.

37.

Reimbursement Recipients are not required to be Small Businesses as defined in Section 10-2.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

38.

Incentives or Small Business Grants may be made for the purpose of financing building construction, conversions, and expansions where it is deemed necessary by the staff for the growth and development of the City of Abbeville.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

39.

The applicant must fit in the definition of small businesses as defined by the City of Abbeville - (15 Full-Time) employees or less.

40.

The recipient business or property must be located within the city limits of the City of Abbeville.

41.

The businesses must be for-profit.

42.

Applicants must agree to provide all information and business records requested pertaining to the grant or business during the application process.

43.

Development Incentive recipients must meet all criteria in Section 10-5 to be eligible to receive a Development Incentive with the exception of the Small Business Requirement. Development Incentive recipients are not required to be a Small Business as defined by the City of Abbeville.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

Small Business Grants cannot be used for the following activities listed below. City staff may reject applications for ineligible activities.

44.

The direct or indirect refinancing of any pre-existing debt or subsidizing interest payments on an existing loan.

45.

Funds for payment, distribution, or as a loan to owners, partners, or shareholders of the applicant's business, except as ordinary compensation for services rendered.

46.

Acquisition of an equity position in a private business.

47.

Loan guarantees (a promise by one party to assume the debt obligation of a borrower if the borrower defaults on a loan).

48.

Where the purpose of the grant is to finance the creation, dissemination, or distribution of material deemed patently repugnant by commonly recognized community standards of decency or which has the effect of denying anyone their constitutionally guaranteed rights.

49.

Where the effect of the grant would be to encourage a monopoly or be inconsistent with accepted practices of the American system of free competitive enterprise.

50.

Applicants without a business license.

51.

Where the applicant's business may not operate totally within the laws of the City of Abbeville and the State of South Carolina.

52.

Other activities prohibited by specific funding sources.

53.

If it is determined that an application is ineligible for funding, a letter or email will be sent after the conclusion of the application cycle.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

The review of eligibility for Incentives & Grants shall be conducted by the City Manager and designated staff members who are authorized to do the following regarding the Economic Development Incentive Program:

a)

Approve/deny all grant requests.

a.

Grant amounts are approved in the City's annual budget.

b)

Determine Eligibility of Utility Incentive, Development Reimbursement, and Large Investment Reimbursement Incentive Requests.

a.

Incentives valued at more than $25,000 require Council Approval through an MOU or Incentive Contract.

c)

Approve/deny referrals for legal action regarding grants or incentives.

d)

Review policies and procedures which apply to incentive and grant funds.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

54.

An application form and all required supporting documentation must be submitted prior to an incentive, or grant request being analyzed by City staff.

55.

Grant Application and Development Incentive Request requirements are outlined in City Policies and Procedures.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

Before approving a grant application or giving preliminary approval to a development incentive request, City staff will review the application or request with underwriting criteria outlined in City Policies and Procedures.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

City staff collects sensitive information from businesses and individuals and must comply with City and federal privacy regulations. In the event of a Freedom of Information Request, personal financial information and trade secrets may not be publicly disclosed.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)

56.

Any interested parties, including City officials, elected officials, full-time staff, and any other parties that advise, approve, recommend, or otherwise participate in business decisions, may not receive any direct or indirect financial or personal benefits in connection with the approval and awarding grant and/or development incentive. These financial interests may include employment, as an employee or through contractual services, stock ownership, a creditor or debtor relationship or prospective employment, with the organization selected or to be selected for an award.

57.

An interested party may not use their position for a purpose that constitutes or presents the appearance of personnel or organization conflicts of interest or of personal gain. An appearance of impairment of objectivity could result from an organizational conflict where, because of other activities or relationships with other persons or entities, a person is unable or potentially unable to render impartial assistance or advice.

a)

Any staff member aware of any conflict of interest, or perceived conflict of interest, has a duty to disclose the conflict to the City Manager. Such conflict of interest shall be disclosed in writing and presented to the City of Abbeville for dissemination to the City Attorney and the City Manager.

b)

Failure to disclose a conflict of interest can result in removal from the selection pool.

c)

When a conflict of interest or perceived conflict of interest arises, grants and/or incentives may not be awarded to the applicant whose application may constitute a conflict of interest.

d)

If an interested party has or has had a business relationship with an applicant within a year of the application, they will not be permitted to participate in the application review and must recuse themselves from the decision-making process when the project is funded with City dollars.

e)

If the City of Abbeville has a financial interest, either directly or indirectly in an applicant's project, City employees must recuse themselves from the decision-making process to avoid any appearance of organizational conflict of interest.

58.

A business in which a City employee has an ownership interest is eligible to apply for funding, so long as none of the conflicts of interest above, or designated by federal guidelines, apply.

59.

The City must comply with all additional federal conflict provisions that may apply.

(Ord. No. 3-2021, 5-12-2021; Ord. No. 8-2022, 7-20-2022)