Some have claimed the proposed downtown mixed-use development project, which could one day boast the Savannah River National Laboratory’s workforce development center as a tenant, will remove valuable commercial property from the tax rolls.

Nothing could be further from the truth, and the proof of that is clear and convincing.

Downtown Aiken’s central business district is home to among the most valuable properties in the city. It might surprise you to know that the most valuable property, the one with the biggest local tax bill each year, is owned by the City of Aiken and operated by the Aiken Corporation of South Carolina.

Of course, I’m talking about the Amentum office facilities located at 106 Newberry St. The Aiken Corporation has held a 99-year ground lease on the facility since it was completed in 2002. That arrangement was made as a proactive, innovative way to keep a piece of government-owned real estate contributing to the community through the payment of annual taxes.

I can tell you, as chairman of the Aiken Corporation, just how much those taxes amount to – and I can tell you that over the last 20 years, the Amentum offices have generated more in city and county taxes than any other property in the central business district.

For 2022, the most recent tax year, the Aiken Corporation paid $37,525.48 in combined local taxes, which was reimbursed by Amentum as agreed to in a triple-net lease arrangement. Over the last two decades, these leased office facilities have generated $614,230.59 in taxes to support our schools and local government. On top of all that tax revenue generated, the Aiken Corporation pays for tenant parking in the adjacent city lot to the tune of $1,003 per month under the ground lease agreement. That’s put $260,780 in the city’s coffers over the last 23 years – and those spaces are still free and open to the public after business hours. So, between the taxes and the parking rental, Aiken Corp has contributed $875,010 in direct funding to local government over the life of this model arrangement.

During the same time period, the lease payments made each month by the tenant, Amentum and its precursor firms, have allowed the Aiken Corporation to pay down the mortgage on the building. Those debt payments have come at no cost to the city or its taxpayers because the Aiken Corporation has been involved and accepted the responsibility of making this hugely beneficial development a reality two decades ago. The multimillion-dollar building will now be entirely paid off in less than three years.

The Aiken Corporation was created in 1995 and initially funded by the Aiken 2020 Campaign. That was a community effort to plan for the future and blunt the impact of major job reductions then announced at the Savannah River Site. We are a nonprofit corporation with the purpose of promoting economic growth in Aiken to help build a strong and stable economic base. The members of our board are community-minded volunteers who receive no compensation for their time and expertise. All that any of us receive from our service on the board is the pride of a job well done in service to the city we love.

Recently, we were asked by Aiken City Council to assist with the preliminary work for a proposed office building in Aiken for the use of the Savannah River National Laboratory. This facility is to be constructed with funds from the State of South Carolina, secured by the Plutonium Settlement. Since it is our belief that this is a tremendous opportunity for Aiken, we agreed to work with City Council for the purpose of hiring an architectural firm for preliminary study, a communications firm to provide accurate information on the project to the public and an attorney to assist us with preparation of a proposed lease with SRNL.

Construction of the mixed use project would be handled by the city of Aiken. Preliminary discussions with the city include the possibility that we would manage the office building, collect lease payments from SRNL and other tenants, and generally manage the property. This is a very similar arrangement to the situation, which we have had for 23 years, with the Amentum building.

It’s precisely the same time-tested and successful model.

The land under Amentum is still owned by the city of Aiken, as would be the property upon which the lab office is to be constructed, regardless of what final site is selected. The land will eventually revert back to the city on both leases at the end of the long-term lease with the corporation.

Folks, it’s just a fact that this model is a win-win for all concerned. In this case, it is even better. This time, the state has allocated the funds to pay for the $20 million building and there will be no debt to pay down as we have done with Amentum. The assessed value of the Amentum offices has been limited over the decades due to state-mandated property assessment caps, but the newly proposed project would come onto the tax rolls at higher present-day value when completed. That means it would automatically eclipse Amentum, becoming the No. 1 taxpaying property downtown by a considerable margin.

That sounds good for our community to me. What about you?