After 25 years of funding millions of dollars worth of infrastructure improvements in Rock Hill’s Manchester Village, a special tax district created to fund those projects is now on its way out.
City Council Monday approved the first reading to dissolve the Manchester Tax Increment Financing, or TIF District.
TIF Districts, of which Rock Hill has four, redirect taxes generated by new business in a specific area towards funding infrastructure improvements.
In the Manchester district, the TIF authorized in 1988 by City Council authorized a bond of $10 million.
City Manager David Vehaun says those funds have now been recouped.
“There’s been a tremendous amount of companies who’ve moved in over there. There are lots of jobs that operate in that district. But the best part is all those companies who move in bring value to the district in terms of taxes,” Vehaun said.
In 1988, the special tax district brought in roughly $8,000 per year.
Today, that amount tops $100,000 per year.
“They money that’s been coming in has been used to repay the debt for the money that was borrowed to build the infrastructure,” Vehaun said. “But now that the debit is all paid off, there is no reason to continue the district.
As a result, the city will redirect $635,000 to Rock Hill School District Three. Another $177,000 will be distributed to York County.
Today, the City of Rock Hill operates four Tax Increment Financing districts: Manchester, Red River, Downtown and the Textile Corridor.