Charleston Approves TIF Funding for Union Pier Development

Charleston Approves TIF Funding for Union Pier Development

The Charleston County School District has made a significant decision regarding the future of the Union Pier on the Charleston peninsula. On October 28, 2024, during a decisive board meeting, the district approved tax increment financing (TIF) funding aimed at facilitating the renovation project of Union Pier. This decision follows two prior discussions held in July and early October.

Understanding TIF Approval

In the board meeting, the vote to approve the TIF funding was not unanimous, reflecting some divisions among the board members. Five members voted in favor, while four opposed the measure. The TIF will enable the city to capture property taxes, typically allocated to Charleston County and the Charleston County School District, and redirect them towards the renovation of the Union Pier.

Local Leaders Speak Out

Charleston Mayor William Cogswell expressed optimism about the project’s potential, stating, “I think it will be one of the landmark projects of this generation. It has incredible opportunity to transform not just the City of Charleston, but the entire region.”

Daniel Prentice, the chief financial officer for CCSD, outlined that typically TIFs are straightforwardly approved or rejected. However, for this particular TIF, he emphasized the need for a negotiation to ensure the school district gains value from its involvement. In return for participating in the TIF, CCSD negotiated the cancellation of a lease agreement on the third floor of 75 Calhoun St., which would return approximately 30,000-square-feet of office space back to the school district, space that has been rented since the 1990s.

Community Concerns

During the public comment segment of the meeting, community members voiced their thoughts regarding the TIF. Notably, two high school students representing an advocacy group called Youth in Action spoke about potential improvements in their schools. A resident remarked on how TIF districts have affected housing availability on the peninsula, reflecting broader concerns about gentrification and affordable housing.

Future Development Plans

With the union pier TIF now officially approved, the city is set to initiate work on turning the area into a hotspot for public improvements. This includes enhancing access to the waterfront, developing parks, creating affordable housing, and bolstering infrastructure. According to a news release from the city, the renovation is expected to result in an annual revenue generation exceeding $20 million for the Charleston County School District.

Mayor Cogswell reiterated, “I think it is an incredible investment for the county, for the school district, and for the city.”

Ownership and Future Developments

The South Carolina Ports Authority previously owned Union Pier before selling it to Ben Navarro, the owner of Beemok Hospitality Collection. Future developments at Union Pier will include more city involvement, particularly concerning its potential use as a cruise terminal. Additionally, the Cooper, a new luxury waterfront hotel, is set to open in October 2025 adjacent to Union Pier, further transforming the area.

This development marks a pivotal moment for the city, potentially leading to substantial economic benefits while also addressing the ongoing challenges of urban living in Charleston.