Riverside Park didn't bring in enough tax revenue, so who's footing the bill?
Monday, February 17, 2020
News 12 at 11 o'clock
NORTH AUGUSTA, SC (WRDW/WAGT) -- Riverside Village was an expensive project, and now city leaders are protecting their investment by asking the developer to pay up.
Greenstone Properties is the master developer behind the district. The city estimated how much tax revenue each piece of the area should generate. Now, they're making sure they get that money.
"If those parcels do not generate the agreed to tax revenues that the city's anticipating to use to pay down debt service, then the city assesses a fee," said Cammie Hayes, Director of Finance.
The fee is called a Municipal Improvement District, or MID, fee. Right now, only one piece of the development generated more revenue than expected: Ironwood Apartments.
"It's not something that's a surprise," said Hayes. "It's been an ongoing communication process."
City finance experts call it an ongoing development process, and said the fees should drop as the years go on.
"That's the ultimate goal is for no MID fees to be assessed in the district," Hayes said.
The city wants Greenstone Properties to pay around $1.2 million my May 1. The developer's website said the development should be completely finished in 2021 or 2022.