HUGH K LEATHERMAN, SR SENATE CHAIRMAN SENATE MEMBERS HUGH K LEATHERMAN, SR HARVEY S PEELER, JR THOMAS C ALEXANDER PAUL G CAMPBELL, JR GLENN G REESE HOUSE MEMBERS G MURRELL SMITH, JR GILDA COBB HUNTER[.]
HUGH K LEATHERMAN, SR SENATE CHAIRMAN Capital Improvements Joint Bond Review Committee SENATE MEMBERS HUGH K LEATHERMAN, SR HARVEY S PEELER, JR THOMAS C ALEXANDER PAUL G CAMPBELL, JR GLENN G REESE G MURRELL SMITH, JR HOUSE OF REPRESENTATIVES VICE CHAIRMAN F RICHARD HARMON, JR DIRECTOR OF RESEARCH SFAA LIAISON 803-212-6682 HOUSE MEMBERS G MURRELL SMITH, JR GILDA COBB-HUNTER ALAN D CLEMMONS LEONIDAS E STAVRINAKIS J GARY SIMRILL MARY KATHERINE ROGERS ADMINISTRATIVE ASSISTANT 803-212-6677 FAX: 803-212-6690 JOINT BOND REVIEW COMMITTEE MEETING Wednesday, October 2, 2019 10:30 a.m Room 105, Gressette Building AGENDA PAGE SC Department of Commerce South Carolina Rural Strategy Plan Lease Proposals a State Accident Fund 113 Reed Avenue, Lexington 24 b Lander University Jeff May Athletic Complex and Related Financing 32 c Winthrop University Lease to York County Disabilities Foundation and City of Rock Hill (Miracle Park) 51 Permanent Improvement Project Proposals with Financing Components a The Citadel, the Military College of South Carolina Capers Hall Academic Building Replacement 59 b Clemson University Daniel Hall Renovation and Expansion 69 c University of South Carolina Campus Village Residential Development .78 d Medical University of South Carolina College of Pharmacy Addition and Innovative Instructional Redesign Renovation 90 Permanent Improvement Project Proposals 99 SC Jobs-Economic Development Authority Annual Report 150 Report of Staff Action SC Department of Natural Resources Charleston - Cape Dike Restoration Project 173 Pending Matters and Updates from Prior Meetings 193 Future Meeting .195 JOINT BOND REVIEW COMMITTEE Meeting of October 2, 2019 Item AGENCY: SC Department of Commerce PROJECT/SUBJECT: SC Rural Strategy Plan Background Proviso 50.21 of Act 91 (2019), Part IB (the FY2019-20 Appropriation Act) establishes within the Department of Commerce the Rural School District and Economic Development Closing Fund The fund must be used to facilitate economic development and infrastructure improvements in counties that contain a school district that has been defined by the Department of Education as having a poverty rate greater than or equal to 86% The proviso also provides the following criteria: 1) One of the top 12 counties with the highest population decline by percentage since 2010; 2) One of the top 12 counties with the highest average unemployment rate for 2018; and 3) According to the US Census 2017 a county with a poverty rate in excess of 20% Up to $15 million of the fund may be used in any county that is contiguous to an eligible county as long as that contiguous county has one county-wide consolidated public school district Funds are to be used on, but use is not limited to, economic development projects, water and sewer infrastructure, and school building infrastructure Once a project is committed, the funds may be utilized to finish that project, even if the county does not remain an eligible county in subsequent years The plan must be reviewed by the Joint Bond Review Committee before funds may be expended, and any unexpended funds at the end of the fiscal year must be carried forward and expended in the current fiscal year by the Department of Commerce for the same purposes Proviso 112.1 of the FY2019-20 Appropriation Act directs a transfer of $65 million to the fund In accordance with Proviso 50.21, the Department of Commerce proposes the attached plan, and requests review by the Committee Observations Attachment C of the plan reflects 14 eligible and 15 contiguous counties, as follows: Eligible: Allendale; Bamberg; Barnwell, Clarendon; Dillon; Fairfield; Florence; Hampton; Jasper; Lee; Marion; Marlboro; Orangeburg; Williamsburg Contiguous: Aiken; Beaufort; Berkeley; Calhoun; Chester; Chesterfield; Colleton; Darlington; Georgetown; Horry; Kershaw; Lancaster; Newberry; Sumter; Union The plan integrates efforts of the Department of Commerce that previously identified the South Carolina counties facing greatest economic development challenges: Allendale; Bamberg; Fairfield; Lee and Williamsburg Commerce has evaluated the overall health of industry, conducted dialogue and data review with local leadership, and has developed plans and strategies to promote economic development in these underserved areas While the approach has been consistent for each county, the potential investment has been tailored based on evaluation findings Commerce has refined this approach for application to the other eligible counties Commerce will commit four full-time employees to the successful implementation of the program Administrative expenses of the program will be funded from existing Commerce funds, and not the Rural School District and Economic Development Closing Fund The plan contemplates integrating the previously identified counties described above and introducing or additional counties into the program by the end of 2019 Notably, the plan contemplates additional state funding in future fiscal years Inasmuch as plans and strategies to promote economic development will be tailored for each county based on evaluation findings, Commerce proposes an indicative range of potential investment within strategic areas, with emphasis on education and future growth: Regional Infrastructure Rural Closing Fund Access to Technology Education, Workforce Development and Talent Recruitment Social Issues General Economic Development Preparedness Project-Specific Research Opportunity Zones Grant Program Education $13 - 20 million $8 - 12 million $2 - million $5 - $15 million $2 - million $10 - 15 million $1 - million $1 - million $4 - million Commerce proposes providing an annual report to the Joint Bond Review Committee by November of each year that will include an update and status of projects in process, preliminary outcomes, and measures reflective of success in addressing future growth and education objectives The report will further include an accounting of funding by county and project, and changes to the estimated budget range for each type of project COMMITTEE ACTION: Review the plan proposed by the SC Department of Commerce in accordance with Proviso 50.21 of Act 91 (2019), and provide comment as appropriate ATTACHMENTS: Letter from SC Department of Commerce SC Department of Commerce Rural Strategy Overview Provisos 50.21 and 112.1 of Act 91 (2019), Part IB Executive Summary South Carolina has experienced unprecedented success in recruiting new capital investment and jobs over the past eight years; however, not all areas of the state have shared in these successes at an acceptable level To address this variance, South Carolina Department of Commerce (S.C Commerce) has developed a rural strategy to identify and initiate comprehensive solutions to, ultimately, build a stronger, sustainable rural South Carolina (See Attachment A) In January of 2018, Secretary Bobby Hitt charged S.C Commerce staff with the development and implementation of a program to address the five counties that have faced the most challenges from an economic development standpoint In July of 2019, S.C Commerce was allocated $65 million for development, specifically funding for rural infrastructure, under proviso 50.21 as approved by the South Carolina General Assembly (See Attachment B for proviso) These allocated funds have been designated to address rural initiatives in 14 South Carolina counties (See Attachment C for a map of the eligible counties) As outlined below, S.C Commerce has refined the original strategy and will implement this approach for the nine remaining counties (of the original 14) identified by the General Assembly, based on population decline and poverty rate The objective of all projects funded via the rural strategy program will be to improve the conditions for future growth, stabilization of the rural communities and make targeted investments into the K-12 and technical school systems serving the eligible counties Background As South Carolina has experienced this remarkable momentum, the growth has not been experienced equally throughout the state With approximately 20 percent of the labor force residing in non-urban counties, there is tremendous potential However, these rural communities often face more challenges to be pro-active with economic development efforts because of financial, infrastructure, education, workforce and resource deficiencies In many cases, there are not sufficient budgets to address critical public needs, which take priority over more strategic development projects And, like many neighboring states, South Carolina’s rural communities have been affected by the nationwide trend of millennials living in an urban core – whether within city limits, the exurbs or, increasingly, the suburbs While South Carolina is not unique in recognizing the need to address key issues impacting rural communities, the state does recognize that the same approach cannot be taken with the expectation of a different, better result To enable these rural communities to be strategic and consistently competitive in the economic development arena, South Carolina will be unique in its approach moving forward Strategy The rural strategy pilot program was launched with five of South Carolina’s most disadvantaged counties, ranked on poverty rate and population decline The five counties identified for the pilot (Allendale, Bamberg, Fairfield, Lee and Williamsburg), not have access to the same level of robust services and resources that are found in the larger, more populated areas of the state As an initial step, each county was evaluated to examine the overall health of industry; this included extensive dialogue and data review with local leadership While the approach was consistent for each county, the potential investment to be made was tailored, based on the evaluation findings; the end result will be a project/solution recommendation with local support to enable the greatest long-term impact on the county S.C Commerce intends to take this systematic approach with the remaining counties to implement solutions that initiate, long-term change – change that will transcend any local leadership Each project will have a specific goal and will be measured on an on-going basis to evaluate the impact of the investment S.C Commerce will make significant investments into these counties and leverage other resources, such as federal grant and non-profit opportunities Certain projects will be implemented for three to five years This tenure will: ensure that each project addresses one of the two program objective – education or future growth; provide sufficient time to measure the effectiveness of a project; and allow for the initiation of systematic, sustainable change S.C Commerce is viewing this funding as an initial investment into these counties by the State and has structured the program with the assumption that follow-up funding will be available in future fiscal years In addition to direct funding, S.C Commerce will commit four, full-time staffers – three of whom are senior level with substantial economic and community development experience – to the successful implementation of the program To streamline execution, there are two primary team functions – Discovery and Implementation The ‘Discovery’ team members will lead the county evaluation and solution recommendation part of the program The evaluation will include meeting with the appropriate legislative delegation, as well as the identification of potential agricultural or tourism-related opportunities The ‘Implementation’ team members will work hand-in-hand with the counties to: ensure permitting, infrastructure, engineering and other key milestones are met; help alleviate potential challenges; provide guidance on technical issues; and manage all administrative and financial support for the projects By the end of 2019, the team outlined above will have introduced the next two or three counties into the program As projects are ramped up, another county will be added to the queue S.C Commerce leadership will return to the Joint Bond Review Committee, by November of each calendar year, to provide an update on projects in-process This report will include project status updates and preliminary outcomes, including measurements indicating that the projects are addressing future growth and/or education objectives In addition, it will include any accounting of funding by county and project and changes to the estimated budget range for each type of project Types of Projects Potentially Eligible for Funding *The categories below are an overview not an all-inclusive list of all potentially eligible projects Regional Infrastructure • Encourage and create regional economies of scale for greater impacts • Promote and expand best practices to plan for the future • Improvement of the basic rural infrastructure to maximize competitive advantage Potential project example: Consolidating multiple rural wastewater jurisdictions, located in the same county, to create a sustainable, cost-effective system Project Objective: Future Growth Estimated Budget: $13,000,000 - $20,000,000 Rural Closing Fund • Improve rural school building infrastructure • Stabilize existing industry infrastructure and specific competitiveness challenges • Support infrastructure upgrades for a recruited company that will otherwise not locate in S.C without increased capacity Potential project example: Infrastructure improvements to increase a community’s water or sewer system available capacity Project Objective: Education and Future Growth Estimated Budget: $8,000,000 - $12,000,000 Access to Technology • Expand the availability of high-quality public services, including information and communication technology • • Leverage resources to expand rural high-speed broadband and Wi-Fi access to citizens and industry Enhance computer equipment in local schools to provide students access to current technology Potential project example: Implementing a homework application, so K-12 students in rural areas are able to complete web-based homework outside of school and in their homes Project Objective: Education Estimated Budget: $2,000,000 - $5,000,000 Education, Workforce Development and Talent Recruitment • Facilitate a balance of educational offerings with local trade and industry needs for existing job opportunities • Support new models to make rural education accessible and affordable, including possible institutional collaboration Potential project example: Establishing a supplemental center to train for existing rural jobs, in both trade and industry, which are tough to fill because of an imbalance in demand and ready workforce Project Objective: Education and Future Growth Estimated Budget: $5,000,000 - $15,000,000 Social Issues • Expand rural transportation systems to mobilize residents for education and employment opportunities • Ensure availability of affordable, accessible, quality healthcare services Potential project example: Piloting a collaborative rural healthcare program, in which services are delivered by community-based service providers (ex certified paramedicine professionals) who are connected with appropriately-licensed healthcare professionals via a telehealth infrastructure Project Objective: Education and Future Growth Estimated Budget: $2,000,000 - $4,000,000 General Economic Development Preparedness • Facilitate product development to ensure inventory is ready • Support fixed asset modernization (ex upgraded machinery and equipment) for existing industry, to include potential assistance with workforce training Potential project example: Working with a rural county on the development, improvement or maintenance of a speculative building to help attract or retain industry Project Objective: Education and Future Growth Estimated Budget: $10,000,000 - $15,000,000 Project-Specific Research • Research that is imperative to determine feasibility of possible aforementioned projects • Pre-project due diligence to provide a better level of the predicted long-term success and sustainability of a project Potential project example: Including rural, project-specific reports, such as a traffic pattern study, preliminary engineering review, DHEC evaluations, etc Project Objective: Education and Future Growth Estimated Budget: $1,000,000 - $3,000,000 Opportunity Zones Grant Program • Provide funding to offset cost to engage an outside vendor to assist in structuring of a competitive Opportunity Zone Prospectus and/or in determining the best project to pursue Potential project example: A governmental entity is interested in developing within an Opportunity Zone If approved for this grant, the entity could use the funds to engage a third party to help determine the most suitable type of project for the given zone Project Objective: Future Growth Estimated Budget: $1,000,000 - $2,000,000 Education • Provide funding to supplement select Department of Education initiatives Potential project example: A pilot program for teacher housing in one of the identified counties that would potentially increase that county’s ability to recruit and retain teachers Project Objective: Education and Future Growth Estimated Budget: $4,000,000 - $8,000,000 Conclusion The South Carolina Department of Commerce is committed to the successful implementation of the rural strategy program and the funds allocated for that express purpose Upon completion, all 14 eligible counties will have had the opportunity to participate Based on an individual project timeline of three to five years and the total funds available, this program will not be implemented quickly Rather, it will be implemented methodically and with sufficient time to review and enact necessary adjustments Projects will initially be funded with year one money from S.C Commerce, federal grants and other local support S.C Commerce is viewing this funding as an initial investment into these counties by the State and has structured the program with the assumption that follow-up funding will be available in future fiscal years S.C Commerce recognizes that this comprehensive approach, tailored to the needs of rural communities, is the most efficient and effective way to implement transformative solutions that will transcend local leadership shifts This program will result in a stronger rural South Carolina by facilitating partnerships at the local, state and federal levels to ensure solutions – addressing future growth and/or education – are not only initiated, but also sustained 181 182 183 184 185 186 187 188 189 190 191 192 JOINT BOND REVIEW COMMITTEE Meeting of October 2, 2019 Item AGENCY: Joint Bond Review Committee PROJECT/SUBJECT: Pending Matters and Updates from Prior Meetings University of South Carolina Intramural Recreation Fields At its meeting on July 30, 2019, the Committee requested further information about the property proposed by the University of South Carolina as a location for its intramural recreation fields The University confirmed that the 300 acres of property is not a part of the property formerly known as the Green Diamond (now Columbia Ventures LLC) property The proposed University property is located north of the Columbia Ventures LLC property, as more clearly reflected on the attached aerial map provided in response to the request for further information The proposed University property was acquired in 2014 by the USC Development Foundation from R William Metzger, Jr., as Trustee for William Maxwell Gregg, II - Debtor The proposed University property is located approximately 0.75 miles from Williams Brice Stadium Parking planned for the site, approximately 150 spaces for the first phase of recreation field development, will strictly support student access to the intramural fields The University has no plans to develop Game Day parking on the site COMMITTEE ACTION: Receive this update as information ATTACHMENTS: Aerial map of the subject and adjacent properties 193 + Elev 140 + Elev 130 + Elev 120 + Elev 130 + Elev 120 + Elev 140 + Elev 140 + Elev 120 + Elev 130 Columbia Ventures LLC + Elev 130 + Elev 130 + Elev 120 + Elev 120 + Elev 140 Heathwood Hall + Elev 120 + Elev 130 + Elev 120 + Elev 130 + Elev 130 City of Columbia + Elev 120 + Elev 140 Columbia Ventures LLC + Elev 130 194 I-77 + Elev 130 prepared by USC | Campus Planning 08.12.2019 300 Acres‐ USC Acquisition Project (currently owned by USC Development Foundation) JOINT BOND REVIEW COMMITTEE Meeting of October 2, 2019 Item Number AGENCY: Joint Bond Review Committee PROJECT/SUBJECT: Future Meeting The next meeting of the State Fiscal Accountability Authority is tentatively scheduled for Tuesday, December 10, 2019 2019 January April Su Mo Tu We Th Fr Sa 10 11 12 July Su Mo Tu We Th Fr Sa 10 11 12 13 October Su Mo Tu We Th Fr Sa 10 11 12 13 Su Mo Tu We Th Fr Sa 6 10 11 12 13 14 15 16 17 18 19 14 15 16 17 18 19 20 14 15 16 17 18 19 20 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 22 23 24 25 26 27 21 22 23 24 25 26 27 20 21 22 23 24 25 26 27 28 29 30 31 28 29 30 28 29 30 31 27 28 29 30 31 February May August November Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 9 10 11 4 10 3 10 11 12 13 14 15 16 12 13 14 15 16 17 18 11 12 13 14 15 16 17 10 11 12 13 14 15 16 17 18 19 20 21 22 23 19 20 21 22 23 24 25 18 19 20 21 22 23 24 17 18 19 20 21 22 23 24 25 26 27 28 26 27 28 29 30 31 25 26 27 28 29 30 31 24 25 26 27 28 29 30 March June Su Mo Tu We Th Fr Sa September Su Mo Tu We Th Fr Sa December Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 8 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 15 16 10 11 12 13 14 15 15 16 17 18 19 20 21 15 16 17 18 19 20 21 17 18 19 20 21 22 23 16 17 18 19 20 21 22 22 23 24 25 26 27 28 22 23 24 25 26 27 28 24 25 26 27 28 29 30 23 24 25 26 27 28 29 29 30 29 30 31 31 30 COMMITTEE ACTION: Schedule next meeting ATTACHMENTS: None 195 ... Project-Specific Research Opportunity Zones Grant Program Education $13 - 20 million $8 - 12 million $2 - million $5 - $15 million $2 - million $10 - 15 million $1 - million $1 - million $4 - million... Services Agenda Item Worksheet SC State Accident Fund Letter dated August 20, 2019 Sections 1-1 1-5 5 and 1-1 1-5 6 of the South Carolina Code of Laws 25 26 27 28 29 30 31 JOINT BOND REVIEW COMMITTEE. .. and Economic Development Closing Fund shall be reduced proportionately 23 JOINT BOND REVIEW COMMITTEE Meeting of October 2, 2019 Item 2(a) AGENCY: Department of Administration Facilities Management