Greenville plans to boost Laurens Road revitalization with tax district

Public and private entities are looking to redevelop a portion of Laurens Road into a revitalized corridor within the city of Greenville.

In recent years, the commercial corridor in the areas near the Haywood Road and Verdae Boulevard intersections has been characterized by stagnant land values, increased vacancy rates and outdated infrastructure. Semi-occupied strip malls with large parking lots currently occupy a large portion of the land being targeted for redevelopment.

Verdae Development and Hollingsworth Funds have a major redevelopment project in the pipeline along Laurens Road that was initially unveiled in 2022. The developers plan to transform approximately 90 acres along the corridor into a walkable, mixed-use district with a variety of commercial, residential and recreational space.

To support the project and other future development, the city of Greenville plans to create a tax increment financing district along Laurens Road. Greenville City Council approved the first reading of an ordinance to implement the public-financing tool on Oct. 14.

Financing framework

Tax increment financing would allow the city to use additional property tax revenue to fund public infrastructure projects within the designated Laurens Road TIF district. The district would comprise approximately 223 acres along the corridor from Haywood Road to Verdae Boulevard. It includes the east side of Laurens Road and stretches west roughly to the Swamp Rabbit Trail.

Once the TIF is implemented, the property tax allocations within the district are frozen for the next 30 years. Additional property tax revenue is generated as redevelopment projects increase assessed property values in the area. It is estimated that approximately $31.5 million will be generated in annual incremental tax revenue once the redevelopment projects in the TIF district along Laurens Road are completed.

The city previously used the public financing method to help Hollingsworth Funds and Verdae Development build Hollingsworth Park, the main residential community in Verdae.

Greenville Mayor Knox White said a TIF is used when a tremendous amount of infrastructure has to be put in place for a large redevelopment.

“There would be very little way to address all the infrastructure needs over there in a quality way and your development wouldn’t be something that would generate the future property tax dollars you’d like to see,” he said.

Under a future-development agreement with the city, Verdae Development and Hollingsworth Funds would complete the needed public infrastructure improvements for their project along Laurens Road. These infrastructure enhancements are expected to be completed in several phases.

Dan Klausner, CEO of Verdae Development, said the companies will fund the public improvements up front.

“The financial risk is shouldered by us and not the taxpayer,” Klausner said.

The TIF would allow the city to issue bonds to reimburse Verdae Development for the completed public-infrastructure projects. These bonds would be funded using 50% of the additional property tax revenues. The remaining tax revenue will be allocated to taxing entities such as the city, Greenville County, Greenville County Schools, the Greenville Arena District and the Greenville County Museum Commission.

Project plans

South Carolina law outlines specific redevelopment projects that can be funded by a TIF. The type of projects the city intends to use TIF funding for along Laurens Road include:

Roadway improvements (intersection upgrades, bike lanes, sidewalks, streetscapes)
Open space (trails, plazas, outdoor recreation, tree preservation)
Affordable housing
Utility infrastructure (sewer, water, stormwater, broadband)
Parking facilities

According to the city’s ordinance, the estimated cost of the needed infrastructure projects within the Laurens Road TIF District is $210 million.

The city previously used tax increment financing to complete public infrastructure improvements in Greenville’s Central Business District and the West End. The TIF districts were established in these areas in December 1987. White said the TIF helped redevelop downtown into what it is today by funding sidewalk, landscaping, added parking and other projects.

Greenville City Councilmember Will Brasington said the city will come up with a list of specific infrastructure projects it will invest in with TIF over the next few decades. The projects are anticipated to be completed over the next 20 to 25 years.

A 45-day public comment period is currently underway for the proposed TIF district. Brasington said this allows the community to weigh in and learn more about the Laurens Road TIF plan. A public hearing will also be held on Dec. 9, followed by council’s second reading of the ordinance.

“We positioned the city to really start taking steps forward in partnership with community entities like Hollingsworth Funds and Verdae Development to see how the Laurens Road of the future can really live up to its full potential,” Brasington said.

What is a TIF?

Tax increment financing is used by cities and other municipalities to help encourage development in run-down or blighted areas. The financing method allows a municipality to incur debt for a redevelopment project. The debt would be paid off by the additional property tax revenue generated from the redevelopment projects in the area.

Source: Municipal Association of South Carolina