AGO 99-13.

Court:South Carolina
 
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South Carolina Attorney General Opinions 1999. AGO 99-13. 43Feburary 2, 1999OPINION NO. 99-13F. Lee Prickett, Jr. EsquireCalhoun County Attorney Courthouse Annex, Suite 108 St. Matthews, South Carolina 29135 Re: Informal Opinion Dear Mr. Prickett: Your opinion request has been forwarded to me for reply. You have informed this Office of the following:
In 1996, Calhoun County and Eastman Chemical Company ("Eastman") entered into a Lease Purchase Agreement dated as of December 1, 1996 (the "Lease Agreement") in order to induce Eastman to expand its existing facilities in the County in amount exceeding $200,000.00. SC Code§ 4-12-30 authorizes such an arrangement for qualifying investors. Pursuant to Section 6.3 of the lease Agreement, Eastman agreed to make payments in lieu of taxes ("Payments in Lieu of taxes") with respect to its project. [T]he amount of the annual Payments in Lieu of Taxes is determined and calculated using a 4% assessment ratio and a millage rate of 216 mils. Eastman is entitled to a 25% offset of each year's Payments in Lieu of Taxes as a reimbursement for infrastructure expenditures. SC Code§ 4-12-30(K)(3) authorizes such an offset.
The Calhoun County School District ("the District") would like to build a new elementary school in Calhoun County. The District cannot issue general obligation bonds in an amount necessary to construct the school
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without the approval of the citizens through a referendum due to the Constitutional debt limit of 8%. The district would like to avoid the time and expense of a referendum. The District would like to use the revenue stream from its share of the Payment in Lieu of Taxes to build the new school. The District has requested that Calhoun County Council assist the District in providing financing for the construction of a new school building in Calhoun County by placing the planned expansion into a multi-county industrial park and having the County issue a Special Source Revenue Bond for the school from the fees received and retained by the County from the multi-county industrial park. The money raised by the Special Source Revenue Bond would then be granted to the District by the County for construction of the new school building. The split in revenue would be adjusted so that the County receives the District's share of the income from the Payment in Lieu
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