C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 2

Equitable Development

EQUITABLE DEVELOPMENT ISdevelopment that empowers communities by bringing positive social and environmental changes, and economic returns will be prioritized and incentivized in Columbia.

By working with investors to promote smart growth and social equity via mechanisms that support a broad community vision, we believe that we can help to ensure investment that yields the greatest returns.

We look forward to working together to ensure that the lives of the residents in our designated census tracts are enhanced by development that is community-driven and informed, and aligned with neighborhood plans.

Opportunity Zones in Columbia will Promote Equitable Development.

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 3

OZ ProspectusINTRODUCTION TO

Both cities and rural communities will now have access to a new and incredibly powerful tool to help strengthen, support and drive investment into distressed and largely forsaken areas. With great expectation and vigor, the City of Columbia has put together this prospectus in an effort to educate interested parties and spur collaboration so that the selected zones may truly capitalize on this opportunity.

Columbia, South Carolina continues to be an attractive destination for residential, commercial and industrial development. With 8 census tracts selected as zones, Columbia looks forward to engaging with investors, developers, property owners and community leaders to ensure each identified area may see the development and rejuvenation it desires.

At the core of every zone is not merely a census tract based on a zip code; it is a community where people live, work, worship and grow their families. As we display the city’s zones, we hope investors will remember the great opportunity it is to not only invest in a property, but to also invest in the people of Columbia.

The recent introduction of the federal government’s Opportunity Zone legislation presents one of the most unique and exciting opportunities for communities across the country.

Steve Benjamin, Mayor

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 4

Contents

Purpose

Investor Benefits

Opportunity Zones

Opportunity Zone Population

Social and Economic Overview

MSA Employment Profile

Largest Non-Governmental Employers

Employer Locations

Employment Percent Change

Transformative Capital Investments

Key Takeaways: Strengths

Focus Areas

Zone Strategies

Potential Projects

South Carolina Statewide Incentives

State and Local Discretionary Incentives

Recruitment and Workforce Training

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01ProspectusPurpose

COL UMBIA, SC

COMMUNICATE

Create a clear and coherent message for potential partners and help connect them with ideal development opportunities within the City of Columbia

INFORM

Inform interested parties of the potential for growth and development in the City of Columbia, and promote our strengths and assets to maximize the impact of the Opportunity Zone program on our local community

ENCOURAGE

Encourage long-term economic/community development and job creation, and develop “win-win” projects and solutions that can maximize both development and social impact for all parties involved

CREATE

Create a unified vision and goals for new growth between investors, developers, community stakeholders, citizens, and the business community

INCENT

Identify and incentivize projects that yield high social and economic benefits

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 5

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0403

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C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 6

Investor BenefitsBY T IME

A temporary deferral on the payment of existing

capital gains tax until the end of 2026, or the year

Opportunity Fund investment is sold or

exchanged if beforehand

<5YEARS

Temporary tax deferral +10%

reduction on capital gains taxes owed if

the asset is held for a period of five years

5 TO 7YEARS

An additional 5% reduction on capital gains taxes owed if the asset is held for a period of seven years (15% total)

7 TO 10YEARS

A full tax exemption on the investments made into the Opportunity

Zone Fund provided the investor stays invested in the fund for at least

10 years

>10YEARS

TEMPORARY TAX DEFERRAL

10% CAPITAL GAINS TAX

REDUCTION

+5% CAPITAL GAINS TAX

REDUCTION100% TAX

EXEMPTION

OpportunityZones

COL UMBIA, SC

Columbia, SC is home to 8 Opportunity Zone Tracts

Total OZ Population is 22,629(based on ACS 2016Five Year Survey)

OZ population 16 years and over is 16,334

OZ population 25 years and over is 13,048

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 7

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 8

Opportunity Zone Population

837,092

MSA1,530 Square Miles

CITY135 Square Miles

2010

2018767,598

133,114

2010

2018129.272

7.58%C H A N G E

3.72%C H A N G E

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 9

Social and Economic OverviewBLACK HISPANIC FOREIGN BORN POVERTY MEDIAN HOUSEHOLD

INCOME

MSA 34.07 5.75 5.28 15.10 $54,480

CITY 41.10 5.80 5.40 22.90 $42,875

ZONES 74.99 3.31 2.35 33.40 $29,784

STATE 27.30 5.70 4.80 15.40 $46,898

US 13.40 18.10 13.20 12.30 $55,322

% WITH BA+ % WITH HS DEGREE+

% NO HS DEGREE

% UNDER 18 % OVER 65 UNEMPLOYMENT

MSA 31.90 21.60 10.20 22.30 14.60 5.30

CITY 44.20 19.70 9.80 16.80 9.60 5.70

ZONES 19.33 23.67 16.92 21.75 13.38 19.65

STATE 28.00 20.30 12.60 22.00 17.20 5.80

US 32.00 20.40 12.00 22.60 15.60 5.30

Source: US Census Bureau America Fact Finder 2016 5-Year Estimates, 2017 1-Year Estimates

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 10

MSA Employment ProfileINDUSTRY

CODE2017

COUNT2017

SHARE2002

COUNT2002

SHARE DIFFERENCE

ALL INDUSTRIES 10 372,793 100 319,401 100 ---

ACCOMMODATIONS & FOOD SERVICE 72 35,263 9.46 25,109 7.86 10,154

CONSTRUCTION 23 17,690 4.75 17,222 5.39 468

EDUCATIONAL SERVICES 61 33,594 9.01 32,318 10.12 1,276

FINANCE AND INSURANCE 52 22,562 6.05 20,644 6.46 1,918

HEALTH CARE AND SOCIAL ASSISTANCE 62 52,610 14.11 38,881 12.17 13,729

INFORMATION 51 5,840 1.57 7,251 2.27 -1,411

MANAGEMENT OF COMPANIES & ENTERPRISES 55 2,868 0.77 2,268 0.71 600

MANUFACTURING 31-33 28,056 7.53 34,073 10.67 -6,017

PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES 54 15,339 4.11 12,521 3.92 2,818

PUBLIC ADMINISTRATION 92 34,710 9.31 28,911 9.05 5,799

RETAIL TRADE 44-45 41,713 11.19 37,694 11.80 4,019

TRANSPORTATION AND WAREHOUSING 48-49 13,165 3.53 8,544 2.68 4,621

WHOLESALE TRADE 42 13,785 3.70 11,124 3.48 2,661

EmployersL ARGEST NON-GOVERNMENTAL

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 11

EMPLOYMENT

1,200

EMPLOYMENT

650

EMPLOYMENT

2,100

EMPLOYMENT

1,200

EMPLOYMENT

15,000

EMPLOYMENT

611

EMPLOYMENT

1,625

EMPLOYMENT

800

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Employer LocationsL ARGEST NON-GOVERNMENTAL

EmploymentPercent ChangeYEAR OVER YEAR

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 13

3.75

-0.3

3.26

3.97

6.24

8.07

9.19

11.85

13.83 13.73 13.73

1.3

-2.27 -1.7

-0.68

1.77

3.67

6.75

9.49

11.59211.882 11.882

-4

-2

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

C I T Y O F C O L U M B I A

C O L U M B I A , S C M S A

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 14

$80 MILLION

PROJECT

USC LAW SCHOOL

SPIRIT COMMUNICATIONS PARK

SOLA STATION

PALMETTO COMPRESS

THE EMPIRE

HILTON / HOME 2

TransformativeCapital Investments

INVESTMENT

$37 MILLION

$58 MILLION

$45 MILLION

$40 MILLION

$16 MILLION

TOTAL INVESTMENTS $3,374,357,289

T O T A L R E S I D E N T I A L / C O M M E R C I A L I N V E S T M E N T S I N C E 2 0 0 8

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 15

Key Takeaways:Strengths

Low cost of living and competitive wage rates

A well educated, diverse, young and growing population base

City’s average household income ($48,034) exceeds the state median ($46, 898)

Over 60,000 higher education students annually

Growing number of multifamily, hotel, and student housing oriented developments

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 16

Focus Areas

THE BULLSTREET DISTRICT

Excellent for mixed-use projects, particularly residential, retail, commercial and hospitality

BUCKNER ROAD & I-20

Ideal for industrial, distribution / logistics, and commercial

NORTH MAIN

Optimal for mixed-use projects, residential, retail and commercial

FARROW ROAD

Ideal for mixed use, residential, commercial or healthcare

FAIRFIELD ROAD

Ideal for residential, retail, and commercial

COLUMBIA COLLEGE

Attractive location for residential and retail

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C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 17

A 181-acre, 20-year mixed-use transformation project

01The BullStreetDistrict:Mixed Use and Commercial

Z ONE ST RAT EGY:

Located within Census Tract 107, and adjacent to Columbia’s central business district

Brand new investments in road and utility infrastructure, with new residential and entertainment investments currently underway

Gigabit internet fiber connections provide a huge benefit to commercial and tech projects

Largest tract of undeveloped downtown land on the East Coast

Complementary to virtually any type of use or project

AMENITIES

• Segra Park [Baseball]

• First Base Office Building

• TownPark homes

• Central Energy Church

• Capgemini

• SOCO Co-Working• Merrill Gardens Senior

Living

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 18

T HE BUL L ST REET DIST RICT

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 19

02Prisma Health Richland Medical District

Z ONE ST RAT EGY:

Anchored by Prisma Health Richland and the Prisma Health Heart Hospital, which are staffed by over 5,000 employees

Areas of expertise include behavioral care, cardiology, obstetrics, oncology, orthopedics, neonatology, robotic assisted surgery, and trauma

Directly adjacent to the future planned location of the University of South Carolina School of Medicine

High traffic potential due to proximity to two major interstates, with multiple commercial corridors supported by a dense residential population

2.82 acres of undeveloped land owned by the City of Columbia in direct proximity to PrismaHealth Richland

Development on City-owned properties can reduce time and effort needed to initiate projects

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 20

03Columbia College Education District

Z ONE ST RAT EGY:

Anchored by Columbia College, a private liberal arts women’s college founded over 160 years ago and one of the oldest women’s colleges in the US

Key areas of educational focus include business and leadership, entrepreneurship, healthcare, communications, education, and technology

Annual enrollment of 1,400 students residing on a 53-acre campus

Richland County Library recently opened a $3M branch expansion at 5306 North Main, directly down the road from Columbia College

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 21

04North Columbia Residential District

Z ONE ST RAT EGY:

All of the census tracts in this district contain or are adjacent to high traffic interstates and large corridor road networks, including I-20, 277, North Main, Monticello Road, Fairfield Road, and Farrow Road

Primary land use in these tracts is single-family residential, with a large pocket of light industrial located along 1-20 between Monticello and Farrow Roads

High potential for multifamily and manufacturing related projects

Columbia Place Mall is located to the far east of the district, and Richland County currently owns several anchor buildings at that facility

POTENTIALRESIDENTIAL / COMMERCIAL PROJECT:

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 22

Farrow Road

ADDRESS5406 Farrow Road

ACREAGE9.9 Acres owned by the City of Columbia

Z ONEDGC Central Commercial

IDEAL USEMixed use, residential use, office and retail

POTENTIALMIXED USE / COMMERCIALPROJECT:

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 23

North Main Street

ADDRESS3452 North Main,

Former Stone Manufacturing

ACREAGE3.55 Acres

Z ONEDM-I Industrial

IDEAL USEMixed use,

commercial, retail, marketplace

POTENTIALHOTELPROJECT:

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 24

Sunset Drive

ADDRESS1301 Sunset Drive

ACREAGE2.82 Acres owned by

Columbia Empowerment Zone

Z ONEDM-I Industrial

IDEAL USEHotel or multifamily

development

POTENTIALCOMMERCIAL / NEIGHBORHOODPROJECT:

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 25

Fairfield Road

ADDRESS5110 Fairfield Road

ACREAGE8.02 Acre, existing shopping center

Z ONEDGC Central Commercial

IDEAL USERetail, commercial or neighborhood center

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 26

South Carolina Statewide Incentives

No state property tax01No local income tax02

No inventory tax03No sales tax on manufacturing machinery, industrial power or materials for finished products

04

No wholesale tax05No unitary tax on worldwide profits06Favorable corporate income tax structure07

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 27

State and Local Discretionary Incentives

Corporate income tax & incentives01Local property taxes & incentives02Sales and Use tax incentives03

State discretionary incentives04Workforce training05City of Columbia incentives are available on a case-by-case basis

06

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 28

State and Local Discretionary Incentives (Cont.)

Income tax reductionUp to 50% per year

JOB TAX CREDIT

(JTC) = $750-$9,000Four tiers available

Carry forward for unused credits

JOB DEVELOPMENT CREDIT

(JDC)

OTHER CREDITS & INCENTIVES

JOB RETAINING CREDIT

Lowers assessment ratio between 10% and 6%

Fee-in-lieu of property taxes (FILOT)

Tax rate lock 20-30 years

Possible 43% savings

C O L U M B I A , S C O P P O R T U N I T Y Z O N E P R O S P E C T U S 29

Recruitment and Workforce TrainingTraining is provided at little to no cost to qualifying companies.

Training since 1961

289,000 +

Served Companies:

GE | Michelin | Bridgestone Boeing | BMW | Mercedes Benz

Nephron

2016 Excellence Award

819 Apprenticeship Programs

17,458 Apprentices Served

Apprenticeship News:

BMW apprenticeship program trains workers

BlueCross BlueShield of SC leads IT apprenticeships