A major Fort Mill company may not have to hire half the workers as first promised
One of the two pillar businesses that helped establish a key York County employment hub may not have to hire half the employees it once promised.
Lash Group in Fort Mill (in Kingsley), has asked York County to allow changes in a key agreement that determines how much the company pays in taxes. Those changes would reduce by 55% the number of new jobs the company is required to create. However, the reduction would be based on the company’s more-than-doubled overall investment in the county.
“Since we signed that agreement, they’ve exceeded their investment level,” said York County Councilman William “Bump” Roddey.
York County and Lash Group set up a fee in place of tax agreement in 2015. Similar agreements are common with large businesses in the area. The agreements allow negotiated fees for a term, which reduces company costs compared to standard tax rates, based on the company’s promise of investment and creation of jobs.
The Lash Group agreement was modified in 2016 and again in 2017 to include affiliate companies. A third affiliate company assumed rights and obligations under the agreement in 2018.
The agreement committed Lash Group to 2,200 new full-time jobs created within five years, and $80 million of investment in land, buildings and personal property.
According to the proposed new agreement, the COVID-19 pandemic and “other reasons outside the company’s control” meant Lash Group wasn’t able to meet the jobs requirement. The most recent change reduces the job requirement to 1,000 full-time positions. It also clarifies that remote work jobs can be included.
“So many people are working from home,” Roddey said. “That would be factored into these jobs as well.”
What makes the change work for the county is company investment. Roddey said to date the company has invested $167 million -- more than double its requirement.
“That far exceeds the expectation going in,” Roddey said.
The larger job requirement wasn’t attainable, Roddey said, but the project still benefits York County.
“But at the same time we’ve gotten significantly more on the investment side, which in turn puts more on our bottom line as far as taxes,” Roddey said.
With fee rather than tax agreements, payments are based on percentages of property values. Plus, they last for a term — sometimes up to 40 years — and once that term ends, the property tax goes the traditional route barring a new agreement.
York County Council is now through two of three needed votes to approve the job requirement change for Lash Group.
According to the South Carolina Department of Revenue, companies in South Carolina that invest at least $2.5 million can negotiate fee for tax agreements, which can result in a payment reduction of up to 40% compared to traditional property taxes. The larger the investment and job creation, the lower rate a business can negotiate to pay.
The Lash Group building that opened in 2016 brought space for 1,600 workers. A second building added in 2018 accommodates up to 1,300. Lash Group and LPL Financial were the keystone businesses that brought life to Kingsley, the mixed-use Fort Mill project at I-77 and S.C. 160 that quickly grew into the second largest tourist draw in York County, behind only Carowinds.
Kingsley remains a thriving area for small businesses, restaurants and services. As a result of COVID, there have been business challenges in the area. Particularly traffic, where larger businesses have voiced concern and at times made operational changes to avoid gridlock. An interchange upgrade is underway, though construction hasn’t yet begun.
This story was originally published November 22, 2022 at 1:00 PM with the headline "A major Fort Mill company may not have to hire half the workers as first promised."
