Port Royal officials ask Beaufort County to revive 2009 MCIP to fund Port Royal Business Park

Port Royal Mayor Kevin Phillips and the town’s attorney, Lawrence Flynn, told the Beaufort County Finance, Administration & Economic Development Committee on May 18 that the town is seeking to revive a funding mechanism first created in 2009 to pay for public infrastructure tied to the Port Royal Business Park redevelopment.

Phillips said the town’s goal is to use an existing multi‑county business park designation and the revenue stream attached to it, rather than starting a new program, to pay for parks, streetscaping, waterfront access and a public shrimp dock that the town says will keep development publicly accessible. “This is not starting something new,” Phillips said. “We’re talking about turning on the funding mechanism that has been in place since 2009.”

Flynn, the town’s attorney, explained the legal background: the property was placed in a multi‑county business park (MCIP) in 2009 and a tax increment financing (TIF) district in 2012. Under state law the original TIF required issuance of debt within its first 10 years; because that did not occur the district was terminated. The proposed approach is to re‑establish an MCIP arrangement that would be governed by ordinance and an intergovernmental agreement among Port Royal, Beaufort County and the statutory “sister county” (Jasper County in the 2009 arrangement), then deploy revenues against a $10 million list of public projects.

Flynn said the town’s proposal would cap the town’s draw at $10 million, with an illustrative pacing of up to $1 million per year—either paid as pay‑as‑you‑go or combined with debt financing—and with an overall legal term not to exceed 20 years. He described the priority projects as parks, streetscape improvements, waterfront access, environmental remediation when needed, and a shrimp dock connected to a town parcel known as Lot G.

Committee members pressed Flynn and the town on the mechanics and the effect on other taxing entities. Flynn acknowledged that the distribution of revenues in a MCIP differs from ad valorem millage and that the town’s plan would re‑capture existing revenues that are currently flowing to the school district and county. Flynn said the school district had previously participated in the 2012 TIF arrangement and the town wants to involve the school district again in any reauthorization and stressed the town’s preference for transparency and negotiation.

Several committee members asked about timing, parcel boundaries and the participation of Jasper County. Flynn said initial landowner and developer activity has produced about $400,000 per year in existing revenues on the property, but that incremental revenue from future development is the source that could support the infrastructure plan. He estimated that full capture under a proposed MCIP could reach the $10 million cap by year 12 under a favorable build‑out, and that the town believes Safe Harbor (the current upland owner/operator) will continue to invest tens of millions of dollars over the next 5–10 years.

School‑district officials in the room warned that a MCIP shifts revenues away from schools and asked for time to review financial impacts; the town said it had already briefed school finance staff and plans more outreach. Committee members emphasized that the county controls the process and any reauthorization would require careful legal and financial review, including the school board’s participation.

Next steps: Flynn said the town sought further committee input and guidance; the presentation was treated as discussion only and could return later as a formal action with proposed ordinances and intergovernmental agreements. The committee did not vote on a policy change at this meeting.

Key facts
- Port Royal proposes up to $10 million for public infrastructure tied to Port Royal Business Park; town prefers a $1 million per‑year draw while development ramps up.
- The property was placed in a multi‑county business park in 2009 and in a TIF district in 2012; the TIF termination stems from statutory timing rules for issuing initial debt.
- The town said current assessed revenues on the site produce roughly $400,000 annually and that incremental growth is the intended revenue source for the MCIP.

Who said what
- Kevin Phillips, Mayor of Port Royal, described the project goals and public‑access priorities for parks and waterfront amenities.
- Lawrence Flynn, town attorney and presenter, explained the MCIP/TIF statutory mechanics and the town’s $10 million proposal.

What’s next
- Town officials asked the committee and county staff to review the legal and financial implications, engage the school district, and return to the committee or county council with draft ordinances and an intergovernmental agreement. No formal county action was taken at the May 18 meeting.