City, CPW Announce New 15-year Agreement
Economic Development Participation Agreement provides for future annexation
The City of Spartanburg and the Commission of Public Works (CPW) have reached an agreement that continues their longstanding partnership and acknowledges the vital link between robust City services and a sustainable water system.
City Manager Ed Memmott and CPW General Manager Sue Schneider announced a 15-year Economic Development Participation Agreement that includes a new annexation policy and schedule of transfer payments from the CPW to the City. The contract’s terms also include the requirements associated with City Council’s approval of CPW bond debt.
The agreement indicates the goal of the ongoing partnership is to enhance the wellbeing of the citizens of the City by jointly participating in the promotion, encouragement and facilitation of high quality development in the City, with attendant growth in tax base and improvement of standard of living within the City, through the provision of certain funding for economic development costs, projects and related initiatives of the City.
The agreement is subject to final approval by the CPW Board and the City Council. City Council will consider the agreement at its June 10 meeting. The CPW Board will consider the agreement at a June 5 meeting at 3:00 p.m. at Spartanburg Water headquarters.
The agreement, which is expected to be approved by both bodies based on staff recommendation, will:
• Provide for the transfer of $1.2 million to City Council in FY 2014, $1.1 million in FY 2015, and $1 million in FYs 2016-2018. Starting in FY 2019 and continuing through the end of the agreement in FY 2028, the $1 million transfer payment will be adjusted annually by the consumer price index, up to a maximum of 4.5 percent over any 2-year period.
• Require new or redeveloped commercial properties located within one mile of the City’s corporate limits and that receive new or expanded water lines to sign an annexation agreement.
“This agreement protects the investment of City residents, while positioning the City for reasonable expansion of its corporate limits and tax base through a new annexation policy, the first of its kind in the City’s history,” said Memmott. “This agreement provides for a stable, reliable partnership that will benefit the entire community.”
“This process has demonstrated the ability of local leaders to acknowledge their differences while focusing on their common interests, and arrive at a solution that represents a long-term win for the Spartanburg community,” said Schneider. “The City of Spartanburg is the hub of prosperity for our area, and we all benefit from a vibrant city center.”