Clear Springs Development To Generate More Than $5.812 Billion In Regional Economic Activity Over 20 Years, Says USC Study
April 29, 1998

The Clear Springs Development Plan proposed for the Fort Mill area of York County, S. C., will result in the direct and indirect economic benefit of approximately $5.812 billion over a 20-year period, according to a recent study by the Center for Applied Real Estate Education and Research (CAREER) of the University of South Carolina.

Additionally, the study documents other benefits expected to be reaped by the region with the proposed development of the entire Clear Springs Plan, including millions of dollars in increased property taxes, school impact fees and sewer and water taps and fees.

According to the study, some $1.374 billion will come from direct investment in the construction, management and development of the Clear Springs community being developed in Fort Mill by the Close Family. Construction of the first phase of the project, the Village of Baxter, is underway.

In addition, the research team, led by research associate John A. Kilpatrick, estimates that the development will generate about $4.438 billion in indirect economic activity in the region over the life of the project.

CAREER, affiliated with the Division of Research at the Darla Moore School of Business at USC, was asked by the Clear Springs Development Company to perform an economic analysis of the Clear Springs Development Plan. For the study, CAREER considered the development of the entire 3,900-acre plan and its economic impact on the region over an estimated 20-year build-out period.

"We are extremely pleased by the results of this study," said James Traynor, president of Clear Springs Development Company. "While we knew the Clear Springs Plan would have a profound positive effect on the community, it is gratifying to have the results of the study scientifically support our expectations."

CAREER used a three-part methodology to determine the economic impact of the plan.

"Initially," explained Kilpatrick, "we analyzed the proposed Clear Springs development plan to isolate the direct investment to the area. Secondly, using the input-output model developed by the U. S. Department of Commerce , we projected the secondary economic benefits to the region, such as additional business revenues. Finally, we estimated other economic benefits that would flow from the project, such as school impact fees and increased property and local-option sales taxes."

With the total proposed plan including some 4,027 single-family detached homes, 1,600 apartments, 4,710,000 square feet of commercial and industrial space and an 18-hole golf course, it is expected that local property taxes will mushroom by $33.4 million over the 20-year period, while school impact fees should top $13.3 million. The study further projects that some $20 million in sewer and water revenues will be collected over 20 years.

In addition to the substantial boost in business activity as a result of the Clear Springs Development Plan, the study notes that approximately 2,220 new jobs will be created in the surrounding area resulting in $38.3 million in additional household income each year.

According to Kilpatrick, these new jobs will not be created on the Clear Springs construction site.

"We are talking about additional jobs at clothing stores, supermarkets and other surrounding businesses which benefit from the activity," said Kilpatrick, noting, "these jobs are purely the result of the investment, not of the shopping demand of the new residents."

The plan for the Village of Baxter plan proposes a total of 1,672 single-family homes, townhomes and apartments, as well as 1.127 million square feet of commercial space. The CAREER study indicated that Baxter alone will result in $1.3 billion in indirect economic benefits for the area over a 20-year period.

Modeled after small towns of the Southeast, Baxter's traditional architecture will reflect the style and character of the up-country South Carolina region. Features such as front porches, abundant sidewalks and narrower streets will orient activity to the front of homes in a pedestrian-friendly community.

Of the total 947 acres in the Village of Baxter, some 450 will be preserved as open space, parks and greenway. It is expected that pre-construction sales will begin this fall with the first residents moving in during the Spring of 1999.

Development is also underway in the commercial areas of Clear Springs with more than 1.2 million square feet occupied or under construction. The two companies now operating distribution facilities in Bradley Park are US Food Services, Inc. and Northern Hydraulics, Inc. In July, Willamette Industries, Inc. will be opening its East Coast headquarters in Kingsley Park while Belden, Inc. plans a November opening for its manufacturing plant in McMillan Park.

These four companies will create more than 1,200 new jobs in the Fort Mill area. Their total capital investment to the area is more than $841 million.

Near Baxter and at the heart of the Clear Springs master plan is the Anne Springs Close Greenway, a 2,300-acre nature preserve established by the Close family in 1995. With the greenway, the Clear Springs community will encompass over 6,200 acres.