Greer Plans to Use Revenue Bond to Fund $100 Million Project
The city of Greer in South Carolina has unveiled its plans to fund a $100 million development initiative known as “ForGreer”. The project aims to accommodate the city’s growth and improve residents’ quality of life.
The Greer city council recently voted unanimously on the first reading to fund the project through an installment purchase revenue bond. This type of bond uses various streams of revenue generated by the city to pay off a debt. The second reading is yet to be scheduled.
Mayor Rick Danner expressed his enthusiasm for the project, stating, “We really have an incredible opportunity to do something over the next four, five years and even to change the trajectory of where we are now.”
The “ForGreer” Project: Four Developments Over Four Years
The “ForGreer” project consists of four different developments that the city plans to pursue over the next four years. These include:
- A police and fire training facility
- A new fire station
- A 500-plus space parking garage
- A $60 million sports and entertainment complex
Revenue Sources for Paying Off the Bond
The city of Greer has identified multiple revenue sources to pay off the installment purchase revenue bond. These sources include:
- Hospitality and accommodation taxes
- Ad valorem taxes
- Revenue from the sports and entertainment complex
- Excess funds at the end of each fiscal year
Gree City Administrator Andy Merriman explained that the ad valorem tax, which is based on the value of a property, will be tied to the millage rate in Greer but at a flexible rate. The millage rate will fluctuate depending on the revenue generated from other sources that contribute to the bond payments.
Merriman emphasized that the city aims to minimize the tax burden on its citizens and will utilize as many revenue sources as possible. The goal is for the new facilities to generate enough revenue to offset the public investment.
In addition to the identified revenue sources, there is also the possibility of using impact fees from future developments to help pay off the bond. Councilman Jay Arrowood stressed the importance of not burdening the current citizens of Greer with the development costs.
Growth and Returns on Investment
Merriman acknowledged that the city of Greer is expected to continue growing, and officials predict that the new facilities will generate significant returns on investment. During the council meeting, Merriman stated that the sports and event complex is projected to be self-sustaining by its second year of operation.
Furthermore, the city estimates an economic impact of $17 to $20 million within three to five years of the complex opening. Merriman believes that the complex will attract and capture sports tourism dollars while also meeting the recreational needs of the rapidly growing population.
Conclusion: A Promising Initiative for Greer
The “ForGreer” project represents a significant investment and development initiative for the city of Greer. Through the use of an installment purchase revenue bond and various revenue sources, the city aims to fund the project without placing a heavy tax burden on its citizens.
With the projected growth of Greer and the expected returns on investment from the new facilities, the city is optimistic about the positive impact the “ForGreer” project will have on its residents’ quality of life and overall development.