South Charleston's proposed tax increment financing district moved another step closer to reality Thursday, as the Senate passed a bill (HB 2709) approving it on a 31-3 vote.
The House of Delegates passed the bill in March on a 92-5 vote, with three absent.
The bill still has to be approved by Gov. Jim Justice and the West Virginia Development Office.
Known officially as The South Charleston Park Place Economic Opportunity Development District, the district would have sales tax revenue generated by new private business finance $155 million in various public projects.
"We obviously want to thank everyone, especially the Kanawha legislators, we've worked a lot with them on this," South Charleston Mayor Frank Mullens said. "[The TIF] will be a game-changer."
The district also would have a property tax TIF for businesses that would be either part of a retail center on the fly ash pond once owned by FMC or at the planned Little Creek Village shopping center across from the Southridge Center.
The district would be used to fund improvement projects including: an educational complex at the West Virginia Regional Tech Park; the Jefferson Road expansion project; an access road at The Shoppes at Trace Fork; and the Thomas Hospital Wellness Center.
At a Senate Finance Committee meeting Monday, Commerce Secretary Woody Thrasher said the Development Office ultimately will support the TIF district but has a couple of minor questions that need to be answered prior to approval.
Sen. Dave Sypolt, R-Preston, said at the meeting he believes TIF districts can be useful for economic development. However, he said he is concerned it could put existing businesses in the area at an unfair disadvantage.
"If I sold cellphones, and I find out the state is going to help build a cellphone business right beside mine and have me compete with it, I'm not going to be real happy," he said.
Thrasher said Sypolt's concerns are legitimate, but said the Development Office found there were no unfair advantages for incoming businesses in its review. He added that no existing businesses have voiced concerns to the Development Office.
Mullens said the TIF district wouldn't change the current tax structure in any way, which he said has been a concern among residents.
Delegate Eric Nelson, R-Kanawha and a lead sponsor of the bill, and Delegate Andrew Byrd, D-Kanawha, released a joint statement earlier this year that said the TIF district will bring much-needed projects and infrastructure to the area that will benefit West Virginians.
"We support South Charleston's proposed TIF district for one reason: economic development," the statement said. "At a time when our state is at a cross-roads, it is encouraging to hear that a project like this will generate economic development, which leads to jobs and an improvement of infrastructure to the surrounding area and its citizens."
The South Charleston City Council passed a motion for the TIF district in February following a public hearing. The council heard from various representatives of area companies, including the West Virginia Regional Technology Park, Alpha Technologies and Terradon Corp., about the benefits of the TIF.
The only issue raised at the public hearing came from South Charleston attorney Thornton Cooper, who said building on top of the fly ash pond could pose a danger to those using the area.
"If you're planning on leaving that stuff there, I have a big problem," he said at the hearing. "Are you going to put up signs to let [shoppers] know they are on top of a toxic waste site?"
TIF districts are not a new device for West Virginia. The state drew Cabela's to open a store in Wheeling in 2004 via a TIF district, and Charleston is using a TIF to help fund renovations at the Civic Center.
Reach Max Garland at max.garland@wvgazettemail.com, 304-348-4886 or follow @MaxGarlandTypes on Twitter.