A Case Of Simple Math

There have been two presentations made to Dillon County Council about a spec building.
Marlboro Electric’s cost would be $2,500,000 for a turnkey Class A project which includes the following:
—$2,000,000 for a Class A Industrial 50,000 sq. ft. expandable building.
—$150,000 for land cost (15 acres at $10,000 per acres)
—A premium location with high visibility on I-95.
—$150,000 for surveys, environmental, certifications from Commerce, land preparation, deeds, and taxes
—$200,000 Contingency fund (8% as compared to the 10% industry standard)
—Guaranteed $2.5 million cost with no additional costs added
—Marlboro Electric will give the county RDA (Rural Economic Development) funds to offset the costs for qualifying projects in the amounts of $225,000 for 2013 and $225,000 for 2014.
—Marketing would include, for example, printed material mailed to site locators and project managers, E-Blast, an internet-based marketing inclusion on many websites, etc. The Palmetto Economic Development Corporation, an economic development and marketing firm owned and managed by the 20 S.C.  Electric Cooperatives and Santee Cooper, would assist in marketing.
—The sewer cost, estimated by Alliance Engineering for the Marlboro Electric site, is $150,000-$200,000. This is to be paid by Dillon County.
Gunter Kale, LLC proposes the following:
—50,000 sq. ft. building expandable to 200,000 sq. ft. on 15 plus acres for $2.5 million
—$150,000 credit back to Dillon County for credit toward the sewer
—$150,000 site contingency credit ONLY IF THERE ARE NO UNEXPECTED COSTS. This is not guaranteed.
—$112,500 value of the 15 acres donated by Gunter Kale LLC at $7,500 an acre
—$10,000 donation to the Dillon County Economic Development Office for marketing. Dillon County would be responsible for the marketing.
—An estimated sewer cost of $450,000 for the Gunter Kale site. This is to be paid by Dillon County.
It’s a case of simple math. The Gunter Kale deal just doesn’t add up.
Marlboro Electric is offering the better deal, and Dillon County Council should vote to move forward with the Marlboro Electric deal on Wednesday.

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