SPA invests $15M for future jobs

The State Ports Authority pledged up to $15 million to ensure that South Carolina won out over other states in attracting a major tire importer that officials hope will pay big dividends for the economy down the road.

The grant money being provided by the maritime agency came to light last week when Berkeley County Council approved two resolutions to cash in on nearly half of it.

Council approved a grant of nearly $4.3 million in site preparation funds for TBC Retail Group's new 1.1 million-square-foot warehouse off Interstate 26 near Summerville.

That work includes engineering and design costs, plus installing utilities such as water, sewer, telecommunications and electrical services, according to the resolution.

Council also approved a nearly $2.6 million grant to TBC, which is the parent of Tire Kingdom, for the costs of relocating, acquiring and installing equipment, according to a second resolution.

That equipment includes cargo handling machinery, generators and security systems.

SPA spokesman Byron Miller said the nearly $7 million comes directly from the maritime agency's revenues. "This is an investment in future business and investment in future jobs for the state," Miller said.

Another $8 million from the SPA will go toward the cost of a new interchange for that area.

When Jim Newsome took over as chief executive of the maritime agency in September, he said one of his key goals was to improve the state's network of distribution centers. His top priority was to increase container volume.

The TBC warehouse is expected to generate about 100 job and become one of the port's biggest customers. More importantly, officials also hope that it will serve as the anchor tenant that will attract more port users to a cluster of industrial parks proposed in the Jedburg area.

TBC said it plans to open its distribution center this year on a former timber tract being developed by packaging giant MeadWestvaco and New York-based Rockefeller Group. They also are building the warehouse for the Florida-based tire company.

At least two other big port-driven industrial parks are planned along I-26 near the TBC site: Trammel Crow Co.'s 315-acre Omni Commerce Park and Hillwood Investment Properties' 750-acre Charleston Trade Center.

The SPA will provide an additional $8 million for construction of a interchange to serve TBC and the other properties, according to Chip Boling, Berkeley County's deputy supervisor. The remaining $100,000 or so of the $15 million will go toward management and oversight costs, he said.

"Had TBC not located here the money would not have come," Boling said. "This is all about bringing the center here."

This is not the first time the SPA has paid to build a major highway interchange. In the late 1990s it funded the junction at Daniel Island and I-526 while it was still seeking to build its Global Gateway terminal on the island.

The SPA's board has not publicly discussed the TBC funding commitments, and it must finalize agreements before transferring the money to the county. The tire company must spend the funds within two years of its first certificate of occupancy for its building, and it must certify in writing that the funds were spent as directed.

A TBC spokeswoman declined Tuesday to say how much cargo the company would bring through Charleston.

While the money benefits the tire importer and the developers of the industrial parks, Boling said the impact extends beyond a single business.

"You build an interchange, and it will benefit everyone in this area," Boling said. "You put in water and sewer, then everyone will have access to it. The whole region benefits from them being here."

Reach Allyson Bird at 937-5594 or abird@postandcourier.com.