By: JOHN SWEENEY
Published: July 21, 2011
Updated: July 21, 2011 – 4:36 PM
Florence County Council has taken yet another step forward in the process to revitalize the historic downtown of the City of Florence.
The county council unanimously passed a resolution Thursday requesting the city to rescind the Tax Increment Financing (TIF) district that makes up the city’s historic downtown.
Both city and county officials have said a resolution was necessary and must be agreed upon by both council’s before plans to bring a 53-room, upscale boutique hotel representing a $5.6 million investment that is expected to create roughly 100 jobs to downtown Florence.
The project also would move the popular Victor’s restaurant, located on 1247 S. Irby St., to the hotel’s lobby in an area with a 180 seating capacity.
County Council Chairman Rusty Smith said the council’s actions Thursday mark a significant step forward for the redevelopment of downtown Florence and that the hotel project could just be the start of development there.
“I think it’s the impetus for that area,” Smith said. “I think it will be an exceptional opportunity to enhance downtown Florence and it will be the beginning of many good things to come.”
Plans to convert the old Cosomo’s building at 126 W. Evans St. into the boutique hotel were announced in June when Florence Mayor Stephen J. Wukela sent a letter to Smith and the Florence County Council proposing an incentive package for the venture.
In order for the incentive package to work, Wukela said the TIF that is currently in place must be removed so a multi-county business park can be formed that would allow the county to offer special tax revenue credits to the hotel project for seven years.
Such incentive would save the project dollars during the renovation and first several years of business, allowing the hotel and restaurant to become successfully established.
Based on current tax rates and projected land values, the deal would equal roughly $500,000 in tax credits.
Last week, the county council approved a resolution stating its intention to invest in the project, and to begin the process of removing the properties from the TIF. The city of Florence hopes the construction of the incentive package will set minimum thresholds for future projects that could qualify for similar incentives.
Earlier this week, Smith said that clause was the cause of some concern, saying council may want to consider making similar incentive programs available to other towns in the county that have historic downtown areas.
Wukela said Thursday that because of the complexity of the legal process, the completed deal would most likely not be approved by both governments until the fall.
The city government, Wukela said, is required to have two reading repealing the TIF district and then the county must have three readings on the creation of a business district in historic area of downtown.
The mayor said he hopes the process will walk hand-in-hand, maintaining the same pace and demonstrating each government’s ability to work together.
“It has to happen, one to get the deal done, but the I think it’s an example of these two governments seeing the same goal and working together to achieve that goal, and that’s very significant.”
The next step in the process, Wukela said, will take place Friday morning when the city reviews what the county council passed today. Following that review, the city will then move to rescind the TIF and refine the incentive package, something the mayor said he hopes will be completed by the end of the week.
Part of that package includes funding of dollars toward the purchase of the property, where the hotel will be located. The deal will include $425,000 paid over two years and require the property to use a certain amount of water each year, contributing a minimum amount toward water and sewer funds.
The resolution passed Thursday did not address that aspect of the deal.
Wukela said last week that the complexity of the legal process was expected to move approval of the project into the fall.