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
5
6
7
8
9
10
11
12
13
14
15
16
17
22
26
28
29
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
02
0403
05
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
01
02
03
04
05
06
07
08
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
0
2
4
6
8
10
12
14
16
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
01
02
03
04
05
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 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