Category Archives: February 2026

The City of Aiken’s First-Come First-Served Sewer Capacity Policy.

Aiken County’s sewer processing capacity is a very finite resource, and the number one limitation on growth in the County, and thus, the City of Aiken. The County operates the Horse Creek Wastewater Plant and sells a portion of its processing capacity to the City of Aiken and several other utilities, including the City of North Augusta and Valley Public Service Authority.

Until now, the City of Aiken Planning Department, Planning Commission, City Manager, and Aiken City Council has treated it like an infinite resource, with Council ultimately granting every sewer service request from outside the City during this decade. Even following the news in the first half of 2024 that Aiken County had sold more than 95 percent of its permitted sewer capacity and the City itself was overallocated, the City of Aiken proceeded with business as usual, even granting sewer allocations to several more out-of-town developments constituting more than 1,200 homes—a total administrative commitment by the City amounting to more than 0.3 million gallons per day (MGD) of wastewater flow.

At its January 12, 2026 Work Session, Aiken City Council and the public were informed that the City’s future additional allocation from the County’s current wastewater plant expansion would be 40 percent lower — down to 1.5 million gallons per day (MGD) from the previously assumed 2.5 MGD. In addition, it was disclosed to Council that the City had only 0.41 MGD of remaining processing capacity from its current allocation with the County. At the same time, the City has at least 0.50 MGD of immediate claims against that remaining gallonage awaiting approval from the Aiken Public Service Authority, leaving a current 90,000 gallons per day deficit. That deficit is arguably significantly larger when considering all the sewer service approvals made by City Council over the past few years that are not accounted for in the 0.50 MGD schedule.


These other Council-approved projects, not yet counted for, are direct demands on the City’s share of the upcoming 1.5 MGD of expanded processing capacity. An analysis of the already Council-approved projects that will be serviced from the future 1.5 MGD is made far worse when new projects currently under review by the Planning Department are also taken into consideration. It appears that Aiken’s capacity to meet future needs is extremely limited.

Despite these disclosures, the City’s sewer policy is still operating on a first-come, first-served basis; not on an in-City project priority basis.

by Don Moniak
February 22, 2026

Since the late 2010’s, the City of Aiken has been aggressively expanding the extent of its sewer and water distribution system; and continues to grant further expansion despite limitations on capacity available from the Aiken County Public Service Authority (PSA).

This expansion has not been accompanied by an increase in sewer capacity. Aiken does not have its own wastewater treatment system, and is reliant upon the Aiken County Horse Creek Wastewater Plant (HCWP)—which is operated by the PSA— for its processing needs. As a customer of the PSA, the City must pay the fees recommended by the PSA and approved by Aiken County Council.

In early 2024, an audit of the plant’s then-permitted capacity of 20 million gallons per day found that the wastewater processing capacity already purchased was nearly at the permitted limit.

No clear public summary of the situation resulting from the audit has ever been issued, but a May 2024 memo (Figure 1) from County Administrator Brian Sanders to Aiken County Council provides the most salient details—the County had sold all but 30,000 gallons a day of its physical and permitted capacity of 20 million gallons a day (MGD). A 6.0 MGD expansion would allow the sale of additional capacity to provide something of a stopgap measure until the Horse Creek Wastewater Plant is further expanded. According to one engineering firm, that future total could be as high as 40 MGPD. (It is important to note that the plant is currently processing about 12 MGPD on average, of which more than half derives from the City of Aiken.)

Figure 1. May 2024 Email from County Administrator Brian Sanders to Aiken County Council. The referenced tables from the audit can be found through this link. (click to enlarge)

The County also recognized that it was not recovering the actual costs of its processing, as it had not raised rates since 2012. In response, County Council approved a 62 percent increase, from $1.50 per thousand gallons to $2.41 per thousand gallons, for sewer treatment processing.

The bad news for the City of Aiken was contained in a subsequent email from County Administrator Brian Sanders to City Manager Stuart Bedenbaugh, in which Sanders wrote that there had been a “major breakdown of communications between the County and DHEC during the permitting process.” According to the audit, the City of Aiken was permitted nearly 0.4 MGPD above its allocated amount since 2012. The good news was that an accounting adjustment added another 1.03 MGPD, leaving the City at that time with 0.64 MGPD of available capacity.

Figure 2. Email from Aiken County Administrator Brian Sanders to Aiken City Manager Stuart Bedenbaugh. (Source: July 8, 2024, Aiken City Council Work Session Agenda Packet). (click to enlarge)


Several months later, following a closed-door Executive Session, County Council approved a massive fee increase for capacity connections (the one-time fee for new capacity purchases). The increase functions as a de facto impact fee, one achieved without any public hearings or public scrutiny.

The rate rose from $0.49 per gallon per day to $10.89 per gallon per day. For example, at an average of 300 gallons per day per home, the new fee increased costs for a 100-home development requiring sewer connections from ~$15,000 to ~$317,000.

Aiken’s Recent Sewer and Water District Growth

The City of Aiken has been expanding its utilities systems and services in two manners—-to grow the City and to grow its sewer and water business.

Expanding Sewer Services to Grow the City

Efforts to grow the City have largely involved annexing contiguous tracts for high-density developments. In addition, there have been a few in-city developments.

The most notable of these is the commitment to developers within the Powderhouse Connector project area, where the City essentially traded sewer connections for road rights-of-way. (See Development Road for more details.)

Aiken has also provided services to several other developments that required annexation, including a district of low-income and affordable apartment complexes in the Dougherty Road area, the May Royal Drive development, which involves more than 200 homes, and another 150-home subdivision along Highway 19.

Expanding Sewer Services to Grow the Business

More notably, Aiken has grown its sewer business by providing sewer and water services well outside the City limits. In doing so, it imposed its urban/suburban growth model upon County residents accustomed to life away from high-density developments, high-impact industries, and relatively high peak-hour traffic. The business growth model also imposed costs upon the County, most notably upon emergency response and volunteer fire resources. (1)

One of the most questionable expansions is eight miles north of the City limits in the area of Interstate 20’s Exit 18. As reported in Aiken Takes on Exit 18, the City has embarked on an expansion that would extend nearly two miles west of Verenes Business/Industrial Park, involving a $3.5 million sewer lift station, and potentially provide sewer services for more than a thousand acres of development—some of it adjacent to or within the City’s Brunswick Tract that was obtained to protect its Shaw Creek water supply; and all of it well beyond any future hopes for annexation.

The planned, but at this point only attempted, growth around Exit 18–six miles north of City limits—also involved a secretive effort known as Project Unicorn, widely acknowledged as an effort to lure the Buc-cee’s company to establish its presence in Aiken County. The status of that project is unknown, but it is still rumored to be in the offering.

The City also pursued, in conjunction with the County, the unpopular notion of providing up to 1.5 MGD of sewer capacity for the proposed House of Raeford chicken slaughterhouse and processing plant, and even voted 6-1 in favor of an Ordinance to provide utility services during its First (and only) Reading. Ultimately, the proposal was defeated when a critical mass of citizen objections meshed with the aforementioned sudden and surprising realization by the County that its sewer processing capacity was nearly fully allocated. (see Sewer Capacity Makes the News).

Similarly, there have also been smaller efforts at sewer-line extensions that could lead to larger developments upwards of ten miles north of City limits. The most notable example is the 7-11 gas station at Exit 22, where the City spent more than a million dollars to extend sewer and water lines across the Interstate, where the 7-11 is, at this point, the only beneficiary of that largesse. (see The Public Costs of a 7-11 Store).

All of the above-mentioned developments occurred prior to mid 2024, and before the surprising findings of the capacity audit.

However, since that time the City’s Planning Commission has recommended, and City Council has approved, sewer services for three new subdivisions: Creighton Meadows (August 2024, 250 homes six miles north of City limits next to the Shaw Plant on Frontage Road) Bridge Creek (January 2025, 725 homes one mile north of City limits along Hwy 19), and Bedford Place (January 2025, 93 homes, four miles north of City limits along Columbia Highway/Hwy 1 N). The issue of the City’s limited remaining sewer capacity never entered the approval equation for these proposed subdivisions, where annexation is generally a distant dream.

This largesse has now contributed to an even greater pinch in sewer allocations for new developments.

The 2026 Reality Check

The present reality was addressed at the January 12, 2026 Aiken City Council Work Session, where City Engineer Thomas Parrot outlined the City’s sewer capacity problems. The highlights of his slide presentation, which can be viewed in the agenda packet and heard in this audio, include the following highlights:

1. The City was notified in early 2024 (around the time of the Chicken Plant controversy) that its “remaining allocation (at the plant) was fully committed.”

2. The City only has 0.41 million gallons per day (MGD) of remaining existing capacity, but there are an immediate “~0.5 million gallons per day” of development needs with capacity approval by the PSA currently pending. That leaves a present deficit of 90,000 GPD. The City is negotiating with the County to obtain a potential credit of 0.1 MGD from previously approved projects that are now stalled or abandoned, which would leave it with a slight surplus.

3. The County has only agreed to sell the City 1.5 MGD of new capacity after its 6.0 MGD Sewer Plant expansion is completed next year. This is 1.0 MGD less than the 2.5 MGD City Manager Stuart Bedenbaugh told City Council in June 2025 (Pages 456 to 474) was necessary to meet current and future demands.

4. The City implemented a policy in July 2025 to make developers pay the upfront cost of the $10.89 per gallon connection fee (although there is no record of City Council approving such a policy (2)

5. Council was told that sewer service approvals are operated on a “first come first served basis.”

6. Staff recommended that Council pass an Ordinance requiring that a Sewer Impact Fee be assessed for all projects outside of the city that are not yet approved for sewer. (3)

However, data obtained via a Freedom of Information Act request shows that while there is an immediate approved project’s need for 0.5 MGDP, the capacity promised by the City Council easily exceeds that figure.

In a document titled CMO Project Spreadsheet, the list of projects ranging from the preconceptual to working review stage that require PSA sewer capacity approval is nearly 0.65 MGPD, more than the 0.5 MGPD reported during the Work Session.

According to City Engineer Thomas Parrott, the 0.5 MGPD is a “planning estimate,” while the 0.65 MGPD “reflects a snapshot of the spreadsheet” that may include “preliminary numbers that are intentionally conservative,” projects at different stages of definition concept,” values that may be updated as plans change, or are on the list but “are not yet at a point where a formal capacity request would be made.”

In addition, no allocation figure is identified for the proposed 705-home Bridge Creek subdivision, for which City Council approved sewer and water in January 2025; and only Phase I of Creighton Meadows (147 homes out of 247 approved in August 2024) is listed in the spreadsheet. In total, ~850 homes are left out of the equation. This commitment by Council could eventually add up to as much as 0.25 MGPD of the 1.5 MGPD in additional capacity.

According to Mr. Parrott, no capacity is listed for Bridge Creek because the City “has not received a formal, usable submittal or a defined phase with enough information to quantify flow.” However, the Sewer and Water Services Agreement has been recorded with the County’s Register of Deeds; and a $40 million lawsuit filed this week against the City argues that such a recording constitutes a long-lived approval by the City and not one that expires (4).

The worksheet also contains a list of commercial projects, but has no sewer data associated with those businesses.

Completely missing from the project list are smaller developments like planned public school expansions and downtown developments.

All this begs the immediate question: why were the Planning Department and Planning Commission allowed to keep accepting and processing applications that required new sewer connections and allocations well outside of city limits? A second question is why City staff, not City Council, is setting policy, particularly the unwritten “first-come, first-served” policy? And a third question on many minds is why there is zero discussion at the Council level of a temporary moratorium on new sewer service for developments well outside of the City limits, at least until City Council can define some priorities that set the standard for which developments receive the benefit of this very finite resource?

Figure 3: Aerial view of the Horse Creek Wastewater Plant near Beech Island, SC. From Brasfield and Gorrie. Expansion area is in center of photo.


Footnotes:

(1) During a Planning Commission workshop last fall, County Development Director Joel Duke described the adverse impacts on the County from the sprawl enabled by the sewer and water expansion policy. These include strains on law enforcement, emergency response, and volunteer fire departments. The Center Fire Department has borne the brunt of this expansion in terms of emergency fire and accident response, and the City of Aiken has made no effort to pay its share of the increased costs.

(2) There was no such item on City Council’s agenda at its only July 2025 meeting.

Section 44-5(b) of the Municipal Code requires developers to pay a $400 per housing unit sewer facilities charge, which works out to only ~$1.25/gallon. There are no apparent plans to repeal this fee.

The new $ 10.89-per-gallon charge mandated by the County and now in effect is not yet part of the City Code.

It is unclear whether the City was authorized by Council to pass the costs of the de facto impact fee along to developers.

(3) The First Reading of the Public Hearing for a Sewer Capacity Impact Fee Ordinance will be held Monday, February 23, 2026 during Aiken City Council’s Regular Meeting. Information and comment opportunities for the Ordinance can be found on a dedicated City web page.

(4) This past week Crowell and Company filed a $40 million breach of trust lawsuit against the City of Aiken. At issue is whether a sewer service approval for a 60-acre parcel along Toolebeck Road, granted by City Council in 2020, is still valid. A key element of the lawsuit is the assertion that the recording of the sewer services agreement, which was signed by City officials, confers a long-term right to that service, one that does not expire as long as other conditions are met.

The “Punitive” Half-Million Dollar Development Subsidy

How one developer who successfully pursued a half-million dollar incentive agreement with the City of Aiken expected more financial assistance; and how the City acquiesced.

by Don Moniak
February 20, 2026

This past fall, spectators at two Aiken City Council meetings–October 27 (1:50 to 2:08 mark) and November 10 (from 1:27 to 2:26 mark)–endured more than an hour of confusing and indecisive Council discussions during public hearings. Specifically, the agenda item in question was:

Public Hearing of an Ordinance Approving Certain Economic Development Incentives for Residential Development to be Developed by Van Rock Holdings and Commercial Development to be Developed by VP Riverside, LLC (see pages 246-293).

The proposed economic incentives were for the Rutland Place development across from Aiken High School (see map). Aiken City Council approved the Concept Plan in July 2024, which consists of 245 housing units on 38.5 acres to be developed by Van Rock Holdings of Greenville, SC, and seven commercial parcels on an 11-acre strip fronting Rutland Drive to be developed by VP Riverside of North Augusta.

VP Riverside purchased the property in 2022 for $2.5 million. In 2025, they divided the property into three parcels, with the residential 38- acre portion being sold to Aiken Rutland Place LLC of Greenville for $2.79 million; a 4.57 acre parcel containing the Tractor Supply store being sold for $0.75 million to 3D Development Holdings LLC of Georgia; while VP Riverside retained a 6.3-acre parcel acre for future commercial development.

The anchor of the commercial development, a Tractor Supply store, was in the late construction stages at the time of the debate, and has since opened. In this instance the developer sought, and eventually received, an incentive for one part of the project that was nearly completed. Two fast food chains and an auto parts store are reported by the developer to be under consideration for development on the remaining six acres.

The Economic Development Incentive Ordinance.

In August of 2018, the Aiken City Council approved an Economic Development Incentive Program Ordinance that allows for up to fifty percent of certain fees, and fifty percent of the first five years of business license taxes, to be reimbursed to any developer who meets a specified investment threshold. The Ordinance does not specifically place a cap on reimbursements, but since its enactment reimbursement caps have been placed on all incentive awards.

The eligible development costs include utility connection and sewer impact fees levied per Section 44-5 of City Code, building permit fees, the first five years of business license fees, and any “such other Incentives that the Council, at its discretion on a case-by-case basis, determines are appropriate given the amount or type of investment made by the Project Sponsor.

The vaguely specified thresholds are that a project is consistent with the City of Aiken Comprehensive Plan, advances the goals of the City, and provides benefits to the City that exceed the value of the incentives.

The Ordinance was not passed on a whim. It was first presented at a work session in April 2018, had its first reading four weeks later, and was subjected to a subsequent public forum. Based on the input collected during that period, the Ordinance was amended and passed in its final form on August 13, 2018.

Since 2018, one small business and numerous developers have benefitted from the incentive program (Table 1). Although the Ordinance does not place a cap on the potential fees, it has been city policy to make fee estimates and cap the reimbursement at 50% of estimated fees. If actual fees exceed the estimate, then the developer receives less than half of those costs.

Project Name Year Reimbursement Cap
Betsy’s on Park2019$10,800
227 Park Avenue 2019$3,600
Chesterfield Place 2019$4,250
Mark at Woodford Apts 2020$100,000
Palomino Oaks2021$243,520
Portrait Hills 2021$112,661
The Magnolia2022$70,000
Seter Ridge Apts 2024$90,000
Weller’s Ridge Apts 2025$70,000
Rutland Place Commercial2025$187,747
Rutland Place Residential2025$356,516
Table 1: Economic Incentives approved by Aiken City Council since the program began in August 2018. Link are provided to all the incentive Ordinances for each project. The first three incentive agreements went to small local businesses. After that, the agreements were with larger developers. In two instances, the recipient was Great Southern Homes (Portrait Hills and Palomino Oaks). In one instance the developer, Mark at Woodford Apartments, has since achieved tax exempt status from the SC Department of Revenue by becoming a low-income housing provider–thus the City is not realizing the tax benefits for that property.


Since the inception of the incentives Ordinance, no developer had ever publicly challenged the City’s incentive numbers.

That changed during the first public hearing, on October 27, 2025, on the Rutland Place incentives package.

After the Ordinance was introduced, VP Riverside* partner Charles Johnson argued at length to City Council that the fee estimates submitted by his firm were higher than those formulated by City staff.

At one point, Mr. Johnson described the amount of actual fees to be reimbursed as “punitive” to developers because the reimbursement amount was capped by the estimated amount incorporated into the Ordinance. He stated:

Since this ordinance really pays back 50% of the total fees paid by the developer over five years by having a number that limits us to a a dollar value is really punitive to the developer. It’s not punitive to the city if the number’s low because if the developer pays more, they just don’t pay them back more. However, if the number’s too low and the developer pays more, they’re limited on what they can get back.

So, with that being said, having our numbers in there, which we feel are absolutely correct, and we’re willing to defend that, would not be punitive to the city, but if we went with the lower number that was submitted, and that is the cap on it, it’s certainly punitive to the developer.”

No member of Council challenged this assertion; but neither did any member of Council support an open-ended incentive based on actual final costs.

Despite the insurmountable confusion over the financial data, City Council unanimously approved the incentives on the First Reading, setting up a final public hearing two weeks later. In the interim, Council guided staff to work to eliminate the confusion by reengaging with the developer to provide final, more accurate and better understood numbers before the Second Reading of the Ordinance.

The Second Reading of the Public Hearing occurred on November 10th, and the discussion was even rockier; the numbers more confusing. At this meeting, VP Riverside partner Todd Glover–who is also Executive Director of the powerful Municipal Association of South Carolina–took over the task of arguing that city staff were shortchanging VP Riverside.

In short, the ensuing debate only added to the confusion and City Council voted for a continuation of the Second Reading.

During the next month, VP Riverside and city staff met to iron out differences, with VP Riverside clearly gaining financial benefit from the exercise. During the continued December 8, 2025 Second Reading, City Manager Stuart Bedenbaugh described the City’s interactions with VP Riverside as “hand-holding” and “everything short of singing Kumbaya.”

The size of the final incentive subsidies for VP Riverside dwarf previous awards (Table 1). The rise in the estimates of project fees between October 25 and December 8 is also striking (Table 2).

Date of EstimateCommercialResidential Total
10/27/26$113,135$700,855$813,990
11/10/26$118,910$842,910$961,820
12/08/26$375,495$713,032$1,088,520
Table 2: Range of estimates over time for fees related to proposed financial incentives for VP Riverside and Van Rock Holdings. The subsidy is 50% of the costs, which amounts to $544,260 in total potential reimbursements.


The financial differences between earlier versions and the final figures (Figure 1) were not revealed in the City Manager’s memorandum for Council’s December 8th meeting; when the Second Reading (see pages 119-136) was continued. The necessity for economic incentives for residential development during a housing boom across the County was never discussed or evaluated.

With no debate, the incentive package was approved by a unanimous vote by a Council with three new members.

Figure 1: Final incentive package figures for Rutland Place. (page 121 of December 8, 2025 City Council agenda packet)(click to enlarge)



Footnote

* VP Riverside LLC’s agent is Attorney Ray Massey, who is one of City Attorney Gary Smith’s law partners. Smith did recuse himself from the Second Reading of the Rutland Place concept plan public hearing in July 2024, after that potential conflict of interest was raised in a letter to City Council. At the time, he stated he was unaware of what Mr. Massey’s role, if any, was in the project. (see Page 4 of meeting minutes)

Mr. Smith did not recuse himself from the VP Riverside Incentive Ordinance process.