Colliers is offering a new incentive in the search for developers interested in restoring the Hotel Aiken.
On August 21, South Carolina Governor Henry McMaster ceremoniously signed a bill extending the state tax to abandoned buildings.
Tax credits and tax cuts are among the state’s most effective economic development tools, McMaster said.
“With this tax credit, we are encouraging developers, business owners and entrepreneurs to breathe new life into once-neglected properties,” McMaster said in a news release. “This will have a ripple effect in the surrounding areas, preserving our history, creating new jobs and helping to make our communities even more proud.”
The new law provides higher income or property tax credits as an incentive to rehabilitate vacant or underused buildings. Previously, the state granted a maximum credit of $500,000 per year. Under the new law, the maximum is $700,000.
To receive the credit, developers must seek to restore or remodel a building that has been largely vacant (66 percent) for five years.
The Shah family closed the Aiken hotel in late 2017 while attempting to renovate it. Four years later, the Aiken Municipal Development Commission purchased the hotel and six other downtown properties.
The City of Aiken acquired the building in 2023 when it dissolved the AMDC. The city hired Colliers to market the hotel earlier this year.
The old Aiken County Hospital would also likely be eligible for the expanded loan.
The hospital was built in 1936 with funds from the Public Works Administration and the Duke Foundation. It served as a hospital until 1976 and from then on as the Aiken County government building until 2014, when it was abandoned.
South Carolina Senator Tom Davis (R-Beaufort) introduced the bill to expand the credit.
“South Carolina is the only state in the country that has an abandoned building tax credit,” Davis said. “We care about our history. It may be cheaper to tear down an old building and destroy its character, but there is value in rehabilitating and revitalizing it.”
The Senate voted 42-0 for the bill on March 19.
Republican Rep. Micah Caskey of South Carolina, Lexington, successfully passed the bill through the South Carolina House of Representatives.
“Every building restored is a step toward a more vibrant, prosperous South Carolina,” Caskey said. “We are taking a proactive stance on safety and ensuring that our cities and communities are not only beautiful, but safe places for our families and businesses.”
The House of Representatives voted 98-8 in favor of the bill on May 8.
However, the House amended the bill before it passed. The Senate then amended the House’s amendments. Ultimately, the House accepted the Senate’s amendments on May 9.
