Guest Editorial by Dick Dewar

May 22, 2023

On January 23, 2023. I attended the State of the City speech by Mayor Osbon. He had promised some new developments in response to Project Pascalis. We were not disappointed. I suspected that some in the audience knew exactly what the speech would contain. 

Mayor Pro Tem Ed Woltz announced that Governor Henry McMaster and our legislative delegation have committed to investing in a new workforce development center for the Savannah River National Laboratory (SRNL).  Former AMDC Members, Chairman Keith Wood, Vice Chair Chris Verenes, and Chamber President David Jameson identified this as an opportunity more than a year ago. That would have been in early 2022.

They worked tirelessly lobbying to get the funding for it and to have it located here in Aiken.  Small group meetings were held without public notice or participation to determine where this structure would be built.  THE FINAL DECISION ON WHERE THE STRUCTURE WOULD BE BUILT IS DETERMINED BY SRNL.  The only requirement was that it had to be built in Aiken County. So if you are disturbed about the location of the building, the fault lies with SRNL.

The Mayor insisted in his speech that “none of this is a done deal and City Council has had initial discussions about it, but nothing is even close to being finalized.” Yet not one public meeting has been held to affect the decision on where this building would be built. 

In a public release dated May 16, 2023, “The SC Joint Bond Review Committee today accepted the allocation of $20 million TOWARD the construction of a state-of-the-art facility for SRNL in downtown Aiken.” Please note that the $20 million may not cover the total cost of the building and the City will be liable for the remainder. “The funding obligation gives the responsibility for producing a new home for the SRNL workforce development center to the City of Aiken” This is contrast to what a member of the Aiken delegation has stated. SRNL had TOTAL AUTHORITY on where this center can be built.

Somehow between the mayor’s speech on January 23, 2023, SRNL made the decision on where the center would be built. No doubt they may have been influenced by the members of the Aiken Municipal Development Commission (AMDC) and members of Aiken City Council. A major influence on the location of the SRNL center is that it justifies the construction of a parking garage which will cost Aiken taxpayers another $7 million,   

On March 13, the City approved a $250,000 no-bid professional services contract with the Aiken Corporation in violation of a city ordinance which requires that contracts of this size be put to bid. This is a blatant violation of a City Ordinance. Yet no comment from the City Attorney.

This no-bid contract also states that “the Aiken Corporation will oversee the construction phase eventually owning the building.”

The Aiken Corporation is a non-profit organization created by and serving at the discretion of Aiken City Council, but acts in an INDEPENDENT manner. Its primary donor is the City of Aiken. Such an arrangement is known as “quasi governmental”. Once again, non-elected members of the community get to make major financial decisions with no public input or scrutiny,

It is worth highlighting the fact that the City of Aiken built the Aiken Department of Safety building by bidding for its construction and the facility was built on time and on budget.

It is also worth noting that the City of Aiken built the Lessie B. Price Senior Center using the same process. It was built on time and on budget.

Finally, the City of Aiken built its new headquarters using the same process and it was finished on budget. 

Why do we need a different procedure for the SRNL center? Why do we need to give the building away to a “quasi governmental” agency?

At this point, it appears the City will give the Aiken Corporation four of the seven properties involved in the massive $9.6 million AMDC purchase: 

• Warneke Cleaners, McGhee Building (includes old CC Johnson Drug Store), and Taj Restaurant, collectively purchased for $2.25 million. 
• Holley House, purchased for $2.125 million (half of the $4.25 million Hotel Aiken/Holley House purchase). 

This is money to be given to the Aiken Corporation with zero return to the City essentially a loss of $4.375 million.

This leaves the City still owning:

• The Hotel Aiken, purchased for $2.125 million. 
• The Beckman Building at 106 Laurens Street, purchased for $1 million. 
• Newberry Hall, purchased for $2 million.” 

With this plan, the Aiken Corporation will own the building, charge rent to SRNL, and probably have the City be responsible for maintenance, upkeep, and utilities. Also keep in mind that the City is responsible for the entire cost of the building. If it costs $25 or $30 million, the City would pay everything in excess of $20 million.

SRNL’s decision removes currently taxable property in the middle of our downtown making it no longer taxable. What is the cost of this action over the next 20 years?

I would prefer that a responsible developer determine how much the building would cost before any financial commitment is made by the City. It is shocking that there is no Memorandum of Agreement between SRNL and the City of Aiken outlining SRNL’s requirements which would enable the City to more accurately determine the cost of construction. 

We don’t need the Aiken Corporation involved. It makes no financial sense.

Call the Mayor and your council member to protest this process. Demand more financial data before any commitment is made.

Attend City Council meeting to do the same. 

Dick Dewar
Aiken, SC

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Dick Dewar was elected in 2007 to Aiken City Council District 3 and served three terms. He did not seek reelection in 2019.