SC secured $10B in investments in 2022. Commerce says it still needs $100M for infrastructure

Despite announcing $10 billion worth of capital investment from companies planning to locate or expand in South Carolina this year, state economic development leaders say they need $100 million for infrastructure work to attract more business investment.

The state Department of Commerce also wants to go through a rebranding effort, despite the recent successes that include multibillion-dollar investments in the electric vehicle industry planned for the state.

The requests are part of the agency’s annual budget request lawmakers will consider next year. Budget writers have $3.5 billion of one-time and recurring money to allocate during budget discussions.

As part of large deals recently announced, South Carolina agreed to pay for hundreds of millions of dollars in infrastructure upgrades at sites for projects.

To attract electric vehicle battery cell maker Redwood Materials to build $3.5 billion facility in Berkeley County, South Carolina plans to use $226 million in taxpayer money for the project, which includes buying the land for the project and paying for site preparation and road, water and wastewater improvements, according to state Joint Bond Review Committee documents.

In another economic development deal, South Carolina promised to spend more than $205 million to complete an employee training facility, add road improvements and water and sewer infrastructure, and to cover additional project costs to help electric vehicle battery cell maker Envision carry out an $810 million project in Florence County.

So for the second straight year, the S.C. Department of Commerce is asking for $100 million for a Strategic Economic Development Infrastructure Fund.

Previously, the state did not set aside money for significant state infrastructure needs for economic development in its budget process. The state does borrow money to pay for large infrastructure if an economic development project meets certain requirements.

Commerce says it needs the ability to be proactive when building out key infrastructure so it doesn’t have to wait for specific projects to come.

“This fund allows the state to be nimble and responsive as needs are identified,” Commerce spokeswoman Kelly Coakley wrote in an email to The State. “The ability to respond quickly is vital. Therefore, these funds are used to support strategic infrastructure such as site and other product development that if left undone, minimize the likelihood a given area will be viewed as attractive to prospective companies.”

One project the commerce department plans to carry out is an undersea cable landing station in Myrtle Beach to correspond with DC Blox’s $31.5 million data center in Horry County. The company connects businesses around the world through its private network and communications partners. Commerce estimate it plans to ask for $7.5 million from lawmakers to help pay for the cable landing station. The formal request is still being finalized.

The ability to provide state-funded infrastructure to support economic development is vital for South Carolina to remain competitive for prospective investments, Coakley said.

Commerce also is asking for $16 million to help make improvements to publicly-owned properties to attract investment to the state. Work would include engineering or public infrastructure improvements, Coakley said.

“The more successful the state is in recruiting companies, the more our inventory of available properties is depleted,” Coakley said. “This fund helps keep South Carolina competitive by replenishing the state’s inventory of sites and buildings by partnering with local communities to develop marketable properties that are competitive in attracting new investment to our state.”

In addition to asking for money for infrastructure work, the commerce department also wants to do a facelift on its branding efforts.

The department said the state’s message to potential employers needs to change, as its 11-year-old tagline of “Just Right for Business” doesn’t indicate the state’s ability to help businesses sustain growth.

As technology constantly evolves and changes all industries, Coakley said, Commerce wants to be able to continue its recent successes and compete with states such as Georgia, North Carolina and Tennessee.

“To help achieve that goal, we are modernizing our branding to speak to how South Carolina is ready for this time of transformation,” Coakley said. “The new branding will help tell our story to better diversify the type of economic development investments made here. We are well known for our manufacturing capabilities. We want to grow and develop a similar reputation when it comes to other sectors such as tech and headquarters (and) office space.”