$1.6 billion mystery project gets approval from Chester County Council

The Chester County Council approved giving tax breaks Tuesday as part of an economic development package to bring a $1.6 billion manufacturing facility to the county.

The council, without discussion, approved an ordinance for “Project 1429” which could employ as many as 1,400 people.

County officials declined to identify the company or to say where the plant will be built. They said the information will be made public by the company at a February or March groundbreaking ceremony that will likely be attended by Gov. Nikki Haley.

Before approving the ordinance to grant tax incentives, the council held a public hearing on the project. The only information provided before the meeting for residents was its potential investment and jobs it would create and that it was a cellulosic renewable diesel facility.

No resident spoke at the any of the three public hearings on economic development matters Tuesday.

Before the vote on Project 1429, councilman John Wayne Holcombe asked if there was any more information on the project. But after the vote, Holcombe said it was his mistake; he said he had forgotten that details would not be released at the meeting.

Councilman Alex Oliphant did not attend Tuesday’s meeting. He has excused himself from deliberations about the project because he owns property that could be affected.

County attorney Joan Winters said state law allows Chester County to keep the company’s name confidential. She said once the project becomes public there would be other opportunities for public comment such as the state Department of Health and Environmental Control’s permitting process.

DHEC officials said Tuesday the agency has not received an application for this project, and it has not permitted a facility of this type before.

“Without knowing more about the process and the type and quantity of emissions expected, we cannot determine what type of air permit, if any, would be needed at this time,” said DHEC spokesman Jim Beasley.

County Administrator Shane Stuart said Tuesday keeping the company name’s confidential is in the best interest of Chester County residents. He declined to comment further.

County officials have continually cited that giving too many details on possible economic prospects could kill a deal. Not releasing company names before a public hearing or final vote is a practice county officials have used for various economic development projects, including the recent recruitment of Giti Tire.

Other counties such as Lancaster and York typically require the company be named before a public hearing.

John Crangle, executive director of Common Cause South Carolina, said secrecy that shrouds economic development projects is a “longstanding practice in the state.” He said the only cure would be for the state Department of Commerce to have a public checklist to release information on tax breaks, land grants or other incentives.

He said the company name, or at least a detailed description of the project, should be available to residents before a public hearing so they can research the company.

Karlisa Parker, Chester County’s economic development director, said the company has been thoroughly reviewed by county officials and that eight years ago affected residents had the chance to comment on the project without knowing the name of the company. She said residents asked for one change that the company said it was willing to make.

“We have held their (the company’s) feet to fire on that,” Parker said.

In August 2007, The Herald reported Chester County was being considered for two plants that would make ethanol, one using corn, the other using wood chips and other debris from the logging industry. At the time, Parker said the business planning a wood-based ethanol plant has vast experience with cellulosic ethanol technology.

Parker said Tuesday the corn-based ethanol plant was no longer being considered for Chester County.

As planned, Project 1429 would be the largest single, economic development investment in South Carolina history, when compared to statistics provided by the state Department of Commerce.

The largest previous economic development project, by investment, was Bridgestone Americas at $1.2 billion, according to the commerce department.

The investment is almost three times larger than the $560 million Giti Tire plant under construction near Richburg. The Giti plant is expected to create 1,700 jobs.

Projects of this size typically qualify for a variety of state incentives. It is the state Department of Commerce’s policy not to comment on possible projects.

Similar projects typically also need railroad access to ship raw materials and finished product.

This story was originally published December 29, 2015 at 2:59 PM with the headline "$1.6 billion mystery project gets approval from Chester County Council."