Loss of steel mill would cost city $887K
Last Updated on 2/23/2012
Published on 5/14/2009
Written by Tommy Howard
* Steel mill pays $887,210 per year to city for taxes, utilities and more
By Tommy Howard
thoward@gtowntimes.com
Georgetown will survive. But, it will be tough on everyone.
That's the upshot of comments from the candidates for mayor of the City of Georgetown when asked about its possible future without the local steel mill.
Responses ranged from not counting on revenue for the city's budget, to no one's able to predict the future, and there's a need for lots of prayers.
Mill closing
On Monday, 242 employees of ArcelorMittal learned they'll be out of work when the Georgetown steel mill closes indefinitely on July 12.
Over the past 40 years, Georgetown Steel has gone through many changes. In its heyday, the mill -- located on the Sampit River in the heart of the city -- employed about 1,000 people.
As the mill has changed hands and gone through bankruptcy in the last decade, that number of workers has dropped dramatically.
What's it mean?
"What will it mean for Georgetown if the steel mill never reopens?"
Each of the four Democrats running for mayor in the June primary, as well as the Republican and petition candidates, was asked the same question.
Budget impact
The total budget for the City of Georgetown is about $30 million. A quick look at various revenue sources for the city shows that ArcelorMittal pays about $40,000 for utilities per month when it's operating.
That revenue comes from the sale of water and wastewater.
The steel mill buys its electricity directly from Santee Cooper.
There are also city fees for business license and other services, and city, county and school district property taxes.
City finance director Jessica Miller will present a closer look at the impact on the budget to city council next week.
For now, though, ArcelorMittal paid the city $887,000 in the year that ended June 30, 2008. That was for utilities, taxes, business license, municipal bill and contract revenue.
Based on a $30 million budget, the 2008 revenue was about three percent of all revenue for the city.
In the years ending June 30, 2007 and 2006, the figure was about $965,000. See the detailed chart for more specific information.
Candidates' comments
Four Democrats -- Lynn Wood Wilson, Peggy Wayne, Rudolph Bradley and Jack Scoville -- will face one another in the June 9 primary election.
The winner of that race will go on the ballot in November against Republican candidate Marty Tennant and petition candidate Bob Sizemore.
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Lynn Wood Wilson
The incumbent mayor said the money received from the steel mill won't affect the city's "General Fund" account, "but it will affect our revenue stream for electricity and water."
"I don't know what to say about it.
"Our hopes and prayers are that it will reopen. When that will happen, we certainly don't know that," Wilson said.
"It's something we'll be dealing with in this budget session, and next year and the year after, if it doesn't reopen."
"The reality is, if it does or does not, the city will move on. We'll deal with it and continue to be the wonderful city that we are," he said.
Just because you're an elected official, Wilson said, it doesn't mean you know more than anybody else or have a crystal ball.
Peggy Wayne
Wayne, the lone female candidate, said, "Oh, Lord. It'll be awful" if the mill doesn't reopen.
"It's going to affect us tremendously every month," with the sale of utilities to the mill.
"It will affect us (the city), not just in the employees and the salaries that come out of it," she said.
It's important for the city to look at its budget.
"We shouldn't count on that money as part of our budget," Wayne said. If the mill closes, that would mean a loss of about $600,000 in revenue, she estimated.
One of the biggest things for people to do is "Say a whole lot of prayers," Wayne said.
She's trying to get an appointment with the mill manager, she said, to "ask him if there's anything the city might do to prevent them from closing."
Rudolph Bradley
Along with other candidates, Bradley said he realizes there would be a decrease in government revenues.
"The water we buy from International Paper still has to be paid for. I trust we will not pass that on to the taxpayers," he said.
The economy of Georgetown will be stifled, "but I won't be so negative as to say Georgetown will be at a standstill."
"Even when the mill shut down in the past, people continued moving on. It's not a happy thing to happen," Bradley said.
"It would be a slowdown, but it will not be economic death to the town."
Jack Scoville
The loss of 250 good-paying jobs "is devastating to those people," Scoville said.
The negative impact on the city in the short term "is going to be a disaster," he added.
Over the long term, the effect isn't certain.
He noted that ArcelorMittal closed a plant in the Midwest.
"They're not doing anything with the property. It's just sitting there," Scoville said.
"That's not going to be good if we just have this closed factory sitting on the edge of the harbor."
For years, he continued, many local residents have been saying if the mill was gone, someone could put in condos, a park, shops or something. It would be good for tourism if that happened, the reasoning goes.
"The problem with that site is, we don't know what's there," Scoville said. "There are all kinds of contamination issues there."
Over the years, the property where the steel mill now sits has been used for several lumber operations, with creosote and arsenic likely in the water and in the ground, as well as the possibility of other materials.
It would be expensive to clean up the site, Scoville said.
"I certainly don't believe in doing anything that would undercut the steel mill's possibility of reopening.
"I certainly hope it reopens. If it does not, then get them to tear the building down and do something positive," he said.
"Hopefully, it will open in three or four months and they'll be stronger than ever," Scoville said.
Marty Tennant
"If the steel mill never reopens, it will obviously be a huge hit to the large number of families who have relied upon the mill for their very existence," Tennant said. He's the Republican candidate for mayor.
"I'm glad the workers have a provision in their contract for continued reduced wages and health care, to soften the blow."
He said the financial impact will spread to the city and other local governments.
"Depending on whether another business can take over the mill and turn a profit, many families may be forced to leave Georgetown and look for employment in other areas."
If a worst-case scenario occurs and no other business takes over the site, government and private interests should develop a plan "to creatively turn this negative into a positive."
Tennant also said now would be a good time to start negotiations with the county on consolidating government.
"We need to identify City functions that could be done better and more efficiently by the equivalent County department. The first department that comes to mind is Planning and Zoning."
"As Mayor, I will work tirelessly to bring the City through this tough time and to emerge as a stronger and more unified community once this crisis passes," Tennant said. "The key idea is to turn this negative into a positive through hard work, smart government and private investment in our future."
Bob Sizemore
A petition candidate, Sizemore selected several comments posted online from the Georgetown Times Web site, www.gtowntimes.com as part of his response.
* "It is time to clear the eyesore away."
* "We are a small town between Charleston and Myrtle Beach ... a spot to fill up on gas -- and that's all we will ever be."
* "I hope all those that wanted the Steel Mill closed are happy. All I ask for is everyone to pray for all the Employees that lost their jobs and that things will be okay. That they will not lose everything they worked their whole lives for. A lot of people are losing their jobs, how are we to survive? I pray by God's will that things turn around and soon."
Sizemore offered his perspective on the "what if ...?" question.
"Georgetown is not the first town to be impacted both positively and negatively by the steel industry. I grew up in a steel town (Birmingham, AL) and my father worked for a steel mill before it shut down. My grandfather worked in an iron ore mine before it shut down.
"I remember both their disappointments and uncertainties for the future. However, I also remember the filthiness of the air and ugliness of the mill and the mine and surrounding communities. I remember walking to school, looking at the rising sun -- a red ball, trying to shine through the red iron ore in the air.
"The issue for my father and my grandfather was a fear of the unknown. But they believed and taught me to believe that the future has already been decided and to trust in God's promise -- that He will always give us His best.
"I don't know the answer to "what if", but I do know we live in a beautiful area with many assets and a bright future," Sizemore said.
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By the numbers
Property tax paid by ArcelorMittal Steel
Figures include operating millage and bonded indebtedness
City -- $199,444
County -- $49,078
School District -- $245,176
Total, County-wide -- $493,698
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Why dont we just go ahead and do what has been talked about for years now and move the city limits north out to the Francis Marion Store and to the west to Brick Chimney Road. When you see other citys keep growing and getting more taxes to make their city bigger and better then why not us. Sure there will be some that are unhappy with it but with the extra money that will be brought in it should replace the money that will be lost from the mill. If they ever do build the hospital where they say the are going to with all the medical business that will move and the ones that are done out that way we will that money also. So why not go ahead and move the city limits now instead of waiting a few more years. Posted by on 5/19/2009 |
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Jamie, no name is required. You are right, no ship has delivered met pellets/lump ore to the mill in a long time. I think they now come in by rail and off loaded on track #9. At least this is what I have been told by the former employees that returned to the steel mill. Yes, I do know about the DR plant, I worked there for 30 years in production (operation dept). Posted by on 5/19/2009 |
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For the person saying he hopes I have facts correct, I ask him to stand behind what he/she has said with a name. I ask you when the last time a ship has been to our dock to leave such material with us at the mill? Surely, you must know something. How about end the mystery and help answer this person's question. Posted by Jamie Sanderson on 5/19/2009 |
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Jbird, I'm not happy about people losing their jobs. My own family is also being affected by these layoffs. I'm just saying that it doesn't have to be *all* bad. If we don't choose to try and see something positive coming out of this tragedy, we might as well mix up a batch of grape Koolaid and just end it all. It seems that drunk driving has personally affected you in some way and while I'm very saddened by this and admire your ambition to rid the world of alcohol, it has nothing to do with the Mill or this article. Posted by on 5/18/2009 |
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Manufacturing has been a dying industry for years. Why didn't the city form some sort of a contingency plan? We need city leaders with forethought and vision, not mere prayers. Posted by on 5/18/2009 |
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I ask that all the people that think that the mill is so dirty and bad to take a look around the city. All you have to do is to spend sometime down on the water front and front street. With all the boats that spend weeks, months, and sometimes even years sitting between goat island and the boardwalk dumping their human waste into the water. Its not a nice veiw to see when you take the kids for ice cream down on front street and to take a walk to see floating pass you on your walk. As for the cancer that was brought up by one poster, I challenge you to show me one death of cancer that can be linked to the mill. Where if you take a walk any saturday or Sunday morning and look at the trash cans around the bars on front street and the broadwalk and look at all the beer cans that you find you might be surprised. I can alway in a years time show you many stories in the paper of people that are killed by drunk drivers. So instead of sitting at your computer in the comfort of your home talking about the mill, how about getting out on a friday or saturday night down on front street and talk to the people that are getting ready to commit a crime and offer to drive them home or call them a taxi. Get out and find out what can be done about the boats that dump their sewage into the water. Do something good for a change instead of being happy that a lot of people will be losing their jobs. But you won't! Posted by Jbird on 5/18/2009 |
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Jamie, I hope you have your facts correct. I think the melt shop uses metalized pellets and briquettes in the furnaces. The dust from this can reoxidize and guess what, it turns red. This product is transfered from the DR Plant via railcar or ship to fs 425, fs 401, fs 403, fs 414, fs 414 to the silo or fs 409 to the steel mill. Dust will be present and does float in the air because it cannot all be picked up by the dust systems (fs 350 or fs 471). Posted by on 5/18/2009 |
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THE LABOR UNION AT THIS STEEL MILL AND ALL OVER THE WORLD NEEDS TO FOLD UP AND SIT DOWN SOME WHERE PEOPLE ARE LOSING THEIR JOB BECAUSE THEIR SOMETHING IN THE PAPER WORK THEY DON'T LIKE. I LIVED HERE ALL OF MY LIFE THE MILL HAS ALWAYS BEEN THEIR IT HAS SUPPORT GEORGETOWN AND AND SOME OF THE PEOPLE WHO LIVES IN IT. I HATE TO SEE IT SHUT DOWN BECAUSE THAT A LOT OF PEOPLE WITH OUT JOBS NOW. Posted by on 5/17/2009 |
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The paper mill also produces a residue that can be left on vehicles. Not saying it's the culprit, but there is definitely no red dust - associated with iron ore - being produced today at the steel mill. If you disagree, you are more than welcome to call 843-546-2525 and ask for the Environmental Dept. at the Steel Mill. Ask for Eric Evans. Posted by Jamie Sanderson on 5/17/2009 |
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well, I only moved here in December. I live 2 minutes from the hospital. Why am I still dealing with it if it no longer exists? Posted by on 5/17/2009 |
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No, I live in the city. I am three minutes away from the mill. The red dust you speak of was a product of the DRI plant, which hasn't been running in years. In fact, it is part torn down. Posted by Jamie Sanderson on 5/17/2009 |
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So, that fine red dust I regularily have to wash off my home and car (oddly the same red colour as the rusted out Steel Mill) is a figment of my imagination, Jamie? Or are you one of those people who speaks about life in the city but actually lives out in the clean air of the county? Posted by on 5/16/2009 |
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The City should learn to live within a budget just like people on a fix income. There is a lot of waste within the City government that could be cut back and let some people go who are not doing their job. City police shouldn't be allow to drive cars home and every department of the city has too many people doing a job that one person could do. The mayor of Georgetown should run the city and not pay someone else to do the job and pay them about one hundred thousand dollars a year when this money could be used to keep taxes from going up. I am glad to see the steel mill go out of business because it has done more harm to the health of people and water in this area. I can remember when people could fish and swim in the rivers around this town but now it would kill all of us. Let these city and county police park their cars and walk a route within the city or in a county area because a lot of them need the exercise. We don’t need a city administrator when there is a mayor who should know how to run the city and not just be a figure head. The City receives enough money from taxes and light and water department to run the city and give service to the people. Too much money has been wasted by city employees and city figurer heads. I have seen five people standing over a drainages hold and one in the hold doing the digging. Posted by on 5/15/2009 |
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Obviously, someone hasn't read the paper or looked at the EPA findings on what MILL is being criticized for the pollution in the area. Kudos to those who want to see the steel mill die - can't get the facts straight. Posted by Jamie Sanderson on 5/15/2009 |
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$887,210.00???? THAT'S ALL? Air pollution, cancer and other illnesses, environmental implications to ground water and damage to local flora and fauna and THAT'S ALL the Mill is paying in taxes?? ArcelorMittal key financials for 2007 show revenues of US$105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output. Posted by on 5/15/2009 |
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I do not have a hard time seeing the sun here in Georgetown. Never have. Posted by Jamie Sanderson on 5/15/2009 |
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Bob Sizemore, thanks for your encouraging words and for sharing you personal experiences. God Bless! Posted by on 5/15/2009 |
