Saturday, January 25, 2014

WHO BELIEVES THIS ONE?

This week, American Lafrance, a builder of fire trucks, announced they would be pulling out of Berkeley County.  Any way you look at it, this is bad news.  The County will lose jobs and tax revenue.  Well, that's only half true.

As it turns out, like many other businesses in BC, American Lafrance was operating under a FILOT (fee in lieu of tax) agreement.  Many counties offer these agreements to lure businesses to their area. The county agrees to allow the business to pay a lower fee instead of the regular property tax rates.  This lowers the cost of doing business for the companies and makes locating in that area more attractive to businesses.  Most times, these fees slowly transition toward regular tax rates as the companies become established in the area.  A 20 year transition period is not unusual.

When American Lafrance came to BC, a FILOT was established.   Due to the wording of this agreement and the fact that another company was included, the agreement may not be legally enforceable against American Lafrance.  Six years ago, American Lafrance relocated from their original site to a smaller facility, still in BC. Last week the company announced that they were pulling out of BC.  It is rumored that the parent company has actually moved out of SC entirely.  This week it became public knowledge that American Lafrance is SIX YEARS in arrears with their FILOT payments to BC government.

The first question that comes to mind is:

WHY DID BERKELEY COUNTY GOVERNMENT ALLOW THIER FILOT PAYMENTS TO BECOME SIX YEARS IN AREARS?

Every homeowner knows that the infamous taxman will put you in the street and sell your house if you fail to pay your property taxes.  And it doesn't take 6 years for this to happen. Being as the FILOT is, in the final analysis, just a lower property tax, why should it be handled any differently? Why shouldn't it carry the same level of responsibility? Why should it not be handled with the same degree of severity? Why is BC government not concerned about potentially losing $650,000?

All these questions may cause some concern to some taxpayers.  Thank the Lord our Supervisor made a statement today to alleviate all of these concerns.  Our intrepid leader has county deputies guarding the empty, rented building where American Lafrance WAS located. The odds on bet is most of the equipment and fixtures were removed during the relocation move six years ago. So, don't worry, the empty building and the derelict truck sitting in an overgrown field nearby, are secure.

After consulting several sources familiar with this situation, there are only two scenarios to explain what happened.

1. Our Berkeley County government is completely inept.
                                       
                                      OR

2.  It was to someone's benefit to allow this agreement to fall through the cracks.

Either way you look at it, WE LOSE.


1 comment:

Anonymous said...

It would be interesting to know if the projected FILOT revenue was used in the budget process each of those years. As things go, no one will be held responsible for this over site. What little made the news will be the end of it, as usual. They can't but patrol cars and EMS vehicles because they don't have the money. Now you know why.