On May 13, Georgetown County Council approved an agreement for "development of a Joint Industrial, Business, Commerce and Residential Complex" with Horry County at the Port. The action has raised a lot of questions about exactly what that means. In short, it's an economic development tool and does not mean there is a current plan for the port property.

Here's what it really means:

A Multi-County Industrial Park (MCIP), Business Park, Commerce Park, Residential Complex or combination thereof is a special designation under South Carolina law that allows two or more counties to jointly designate land for industrial or commercial development. Despite the name, the park does not have to span multiple counties geographically—only one county may host the property, but another county must participate in the agreement.

Why are MCIPs used?

MCIPs are primarily used as a financial incentive tool to attract and retain businesses. They allow counties to:

• Offer Fee in Lieu of Taxes (FILOT) agreements
• Redistribute tax revenue for infrastructure and development
• Support job creation and private investment

They are not physical parks, but rather legal and financial designations on paper that allow counties to apply flexible financing mechanisms to support economic development.

Key Benefits of MCIPs:

1. Fee in Lieu of Taxes (FILOT):
   • Qualified companies can negotiate lower property tax payments (usually over 20–30 years), often at a reduced assessment rate (6% or 4% instead of the standard 10.5%).
   • FILOTs are only allowed if the project is located in a designated MCIP.
2. Revenue Sharing Between Counties:
   • The host county typically keeps 99% of the revenue, while the partner county receives 1% as a symbolic share to meet legal requirements.
   • This inter-county collaboration fosters regional cooperation.
3. Special Source Revenue Credits (SSRCs):
   • Counties can return a portion of the FILOT payments to the company as an added incentive, helping offset upfront costs like land purchase, utilities, or site preparation.
4. Infrastructure Funding:
   • Counties can use a portion of the tax revenue generated within an MCIP to fund public infrastructure (roads, water/sewer, broadband) that supports the development.

How the Process Works:

1. A company announces a potential investment.
2. The county (or counties) negotiate a FILOT agreement with the company.
3. The site is placed into a MCIP via an ordinance passed by the county councils of both participating counties.
4. The company receives the benefits of reduced taxes, and the county gains economic growth and job creation.

Why This Matters for Economic Development:

MCIPs are a powerful tool for leveling the playing field with other states offering competitive incentives. They allow South Carolina counties to:

• Make large-scale industrial projects more affordable and attractive
• Encourage long-term investment
• Boost employment and expand the local tax base (even with reduced rates)