North Charleston, South Carolina – In South Carolina, decommissioned military bases are being converted into new community projects.
These developments will benefit from a new tool that will make it easier to find affordable housing in some of South Carolina’s most rapidly developing districts.
“This tax increment funding that our legislature has made available is opening a lot of doors,” Gov. Henry McMaster stated on Thursday.
McMaster joined state lawmakers and local leaders to commemorate the adoption of a new state law, gathering inside what was once a warehouse on the former Charleston Naval Base in North Charleston. The military base was previously South Carolina’s largest civilian employer, but since it closed in 1996, efforts have been made to revitalize the neighborhood.
The former base site is part of a tax increment financing, or TIF, district, which allows local governments to engage in infrastructure upgrades in blighted or abandoned regions. Then they pay it off with the higher property tax income that come from the redevelopment.
“The revenue that’s generated from taxes can be reinvested right in the same community, accelerate the expansion, accelerate the development, and help them achieve some of the long-term goals a little faster,” Senator Sean Bennett, a Republican from Dorchester, suggested.
This new law allows tax funds from TIFs at former military bases to be utilized to develop affordable housing.
“This law sets the redevelopment of a former Navy base on a new path, one that strengthens our connection to the military, supports new infrastructure, and creates opportunities that will benefit families, businesses, and communities across South Carolina,” said Reggie Burgess, mayor of North Charleston.
The change, which has been in effect since July 1, affects three former military base TIFs in South Carolina, two of which are in some of the state’s fastest-growing areas, at the Charleston Naval Base Complex and the former Myrtle Beach Air Force Base, as well as the Savannah River Site Redevelopment Authority.
However, state leaders believe that this reform will benefit South Carolina more broadly.
“Anytime the Charleston region grows, it generates more money, which leads to more tax revenue, and growth always benefits the surrounding cities. Bennett indicated that he hoped to spread out the concentration of tourist and housing.
The new law also permits for the relocation of defense operations from the former naval facility site to a more secure location in the Lowcountry.
