According to information obtained through a Freedom of Information Act (FOIA) request to the South Carolina Department of Agriculture (SCDA), Aiken County was awarded a $6 million grant by SCDA for the purpose of helping to develop the proposed House of Raeford chicken slaughterhouse and processing plant. Had it been finalized, the grant would have supplemented a probable $10 million grant from the federal government to House of Raeford. The existence of the Aiken County grant and the details of the federal grant proposal were never disclosed. Had the project proceeded, the proposed House of Raeford plant near Exit 22 would have received $16 million in direct public subsidies in addition to discounted tax, water, and sewer rates.
by Don Moniak
November 16, 2024
Two weeks after Aiken County Council opted not to move forward on a tax incentive package for the House of Raeford chicken slaughterhouse and processing plant, aka Project Sunny, the Aiken Standard published an editorial by South Carolina Agriculture Commissioner Hugh Weathers that criticized the Council and took a swipe at Aiken County in general for allowing Project Sunny to fail.
Weathers asserted that “the Aiken community will “miss out on the pride that comes from supporting local farmers,” while further stating that Council Council “let their constituents down in failing to gather all the facts;” and that “I’ve heard a lot of misinformation about this project, and I’m disappointed that council never provided an opportunity for the public to learn the facts and weigh the pros and cons.”
What Commissioner Weathers neglected to mention is that the Agriculture Department, the House of Raeford, County Council, the City of Aiken, and the Western Carolina Economic Development Partnership kept the public totally in the dark by failing to provide any information on Project Sunny until opposition to the effort emerged and rapidly grew.
Instead, Project Sunny’s “sponsor” was kept secret until it could no longer be hidden. Only then did House of Raeford and its allies in state government mount what turned out to be a belated, and ultimately futile public relations campaign to try to salvage the project—a campaign that began with a “flowery” presentation to Aiken City Council held during a closed-door Executive Session that should have been on the regular meeting agenda and held in full public view.
In retrospect, Weathers’ frustration at Council’s reticence to disclose any of the facts concerning the project, though not his unnecessary barbs, seems a bit rational because prior to any opposition Project Sunny was a sure bet; and a traditionally opaque approval process was the best means towards winning that bet.
This is evidenced by two grant proposals totaling $16 million that were either barely discussed or not discussed at all during the debate.
First, there was a $10 million grant proposal by House of Raeford in November 2023, assisted by the Agriculture Department, to the federal subsidy program known as the Meat and Poultry Processing Expansion Program (MPPEP). The existence of a possible $10 million grant was referenced in a WJBF story and an Aiken Standard report, but no details were ever offered.
Second, on February 14, 2024, Aiken County submitted an application for a $6 million state grant to the South Carolina Department of Agriculture’s Growing Agribusiness Fund—which was funded by a $40 million legislative allocation in 2023. The County’s grant proposal, which was never publicly disclosed, included House of Raeford financial data—assets, revenues, profits, and costs—that was absent from the federal grant application.
The application shows that, contrary to Commissioner Weathers’ assertions, Aiken County government was very well informed about the project details, including water and sewer demands of at least 33.8 million gallons per month—amounts quite similar to the estimates first implied in January 2024 when the City of Aiken sought a generic rate discount for water and sewer use for major users of its utilities.
Aiken County’s grant proposal also displayed knowledge that House of Raeford’s Aiken plant would not only replace its increasingly controversial West Columbia plant, but it would also double the capacity of chickens processed– up to 57 million per year at a rate of up to 1.3 million per week. The doubling of capacity was also known to be dependent upon the creation of 260 new chicken houses to raise broiler chickens, with upwards of 80 new or expanded growers needed to operate the new facilities—a fact that was greatly and inexplicably underreported during the March-April debate period.
Just twelve days after submitting its proposal, Aiken County was awarded the grant by the “Agriculture Agribusiness Infrastructure Incentives Distribution Initiative Panel” during the panel’s Feburary 26, 2024 meeting.
The two grant proposals and the award to Aiken County suggest that the House of Raeford plant was a done deal prior to two unexpected events: a sewer capacity shortfall and a strong public opposition movement—especially from nearby residents.
County Council Vice-Chair Andrew Siders, who, along with County Chair Gary Bunker, were directly lobbied by Governor Henry McMaster (Figure 1) in early April of 2024, would later tell the Aiken Standard that the opposition was “overwhelming,” a sentiment echoed by County Councilman Phil Napier; who represents the district where the plant was proposed to be located.
The calls occurred two weeks before the Second Reading of a Fee in Lieu of Taxes (FILOT) Ordinance that would have provided tax rate discounts that can be viewed on Page 17 of the County’s Grant Proposal. The details of the FILOT agreement were never made public during the two months it was in Council’s legislative process. The FILOT agreement failed, at least for one year, after Council opted to not move the Ordinance forward during the Second Reading, which can be heard from a link in The Chicken Plant Tapes. (Email obtained via a Freedom of Information Act request.)
The Chicken Plant Location
The two grant applications collectively revealed the location in the northern portion of Aiken County, near I-20’s Exit 22, was based primarily on two factors.
First, it is within 60 miles of most of the company’s existing 80 chicken broiler house growers that supply its current needs.
Second, Aiken County was described in the MEPPA grant application as being “in a rural western/central region of South Carolina, away from major metropolitan areas. This region is represented by rural, underserved, and disenfranchised populations,” (emphasis added) “nearly 13 percent of housing units are vacant,” and the cost of living in Aiken County is lower than that of Lexington County.
The company first settled on a location within Verenes Business Park, which is already zoned for industrial use. As of November 2023, the company had submitted a Letter of Intent (LOI) to purchase the former Avara Pharmaceuticals properties and building on Windham Boulevard.
The site is just south of an undeveloped 146-acre tract owned by the City of Aiken that would have provided a visual screening from the Interstate. However, it is also only a third of a mile upwind from the closest homes in the Taylor Ridge neighborhood, which is composed of quarter to half-million dollar homes on 2-5 acre lots.
The Avara properties total 24.1 acres and the main building is approximately 170,000 square feet, which corresponds to the estimated 165,000+ square foot facility size identified in the County’s grant application, as well as in subsequent reports. The offering price was $12 million, and closing was anticipated for April 2024.
According to an email from Will Williams of the Western Carolina Economic Development Partnership to a local resident, House of Raeford passed on the Avara property after “they determined they could ‘settle’ but not be able to get exactly what they wanted.” Another issue raised in the Williams email was that “I didn’t want odor nor feathers on Windham Blvd”—legitimate issues raised by chicken slaughterhouse opponents.
By the time the County’s grant application was submitted to SC Department of Agriculture, the location had changed to an 87-acre parcel along East Frontage Road next to the existing Shaw plant. This site is generally upwind from more than 100 homes along Old Camp Long Road—the closest being only 1,000 feet— and at least thirty properties in a newly developed area known as Big Branch Farms, where lot sizes range from 5-25 acres. It was to be three miles generally downwind, but close enough to be of concern, to the Summer Lakes neighborhood and the older Millbrook neighborhood.
Clearly, House of Raeford’s due diligence that led to a conclusion that the “region was rural, underserved, and disenfranchised” was undermined by the fact that the area is increasingly dotted with suburban and exurban developments of Aiken, as well as Augusta and Lexington, within an older mix of farms and mixed-income neighborhoods. In fact, instead of a chicken slaughterhouse and processing plant, a suburban-style subdivision is now planned for the East Frontage Road site.
In its search for a more suitable rural setting than West Columbia, House of Raeford instead chose an area undergoing steady residential growth. Instead of looking at its own demographics research deficiencies, the company and its allies in state government blamed the failure of the project on public “misinformation.”
(Feature photo: Concept design of the exterior of the chicken slaughterhouse and processing plant contained in the County’s grant application).
