SOUTH CHARLESTON, W.Va. – The South Charleston City Council set a public hearing Thursday regarding new Tax Increment Financing District that could result in more than $350 million worth of public and private investments.
The South Charleston Park Place Economic Opportunity Development District would include much of the city, and would result in public improvement projects and private investment.
The public hearing is scheduled for Feb. 23 at noon.
The city looks to establish two separate sections: one would focus on collecting property taxes, while the second would collect sales tax. Funds then would be used to finance public improvement projects in both.
South Charleston Mayor Frank Mullens said establishing the district will not mean new taxes for residents and businesses.
“There will be a TIF board created, and those new tax dollars generated from new developments at the current tax rates will be shifted to that TIF board,” Mullens said. “They will issue bonds to pay for public improvement projects, and use those tax dollars to pay the bonds back.”
Mullens said the district will serve as an incentive for businesses to come to the area, with public investments totaling $155 million.
“All of the public improvements like roads and utilities and things could be paid for out of the TIF,” Mullens said.
Public projects that would receive funding include the Jefferson Road expansion project, an access road to the Trace Fork Shopping Center and a new school at the West Virginia Regional Technology Park.
Mullens said the resulting private investments and projects could be worth $200 million.
One site being discussed for development is an 80-acre location that includes the FMC fly ash pond.
Even if the city council approves of the district, it would still need the final approval from the West Virginia Department of Commerce and the state legislature. With this in mind, Mullens said TIF-related improvement projects will not start anytime soon.
“I wouldn’t look for any real start-up for the next at least 12 to 24 months,” Mullens said.
Mullens said the city will not take on any debt during the construction of public improvement projects.