Council gives first nod to DLS fee agreement

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By Chris Sardelli

Lancaster County Council gave its first nod to a fee agreement between the county and a tire retreading company during its Monday, Oct. 14, meeting. 

Council unanimously approved first reading of an ordinance authorizing a fee-in-lieu-of-tax agreement with DLS Tire Centers Inc. 

The company, which was publicly revealed this summer, will set up shop in the former Guardian building in the Perimeter 521 Industrial Park. The building is located at 9072 Northfield Drive, just off U.S. 521 in Indian Land. 

As part of the agreement, the company pledges to create 25 full-time jobs by the end of the first year and create 50 jobs within five years. 

Lancaster County Economic Development Corp. President Keith Tunnell told council the company has already created 42 jobs. He also highlighted the average hourly wage for those jobs, which he said is $17. 

Another integral part of the agreement, Tunnell said, is the company’s pledge to invest $2.6 million in the county, which includes $400,000 in land and buildings, as well as $2.2 million in furniture, machines and equipment. 

“Remember, this is only a fee on the new part, which is what they’re investing, and not on the existing building,” Tunnell told council. 

The fee-in-lieu-of-tax agreement includes an investment period of five years with payments assessed at a ratio of 6 percent and a fixed millage rate of 275.9 mills for a 30-year term. 

The company will receive special source revenue credits equal to 50 percent of the fee-in-lieu-of-tax payments due for the first five years, though the company must repay those credits if their pledge of investment and jobs is not met. 

Prior to the vote, Councilman Bob Bundy gave a thumbs-up to the company.

“I went to the opening and noticed it’s a very impressive operation,” Bundy said. 

Council approved a resolution for the fee agreement in June, though the agreement must pass three ordinance readings to be finalized. Second reading will be at council’s Oct. 28 meeting. 


Contact reporter Chris Sardelli at (803) 416-8416