Rock Hill School District sues city over funding deal

ROCK HILL, S.C. — The Rock Hill School District is suing the city, claiming Rock Hill did not follow through on a deal signed back in 2020.

It involves what’s called a Tax Incremental Financing plan, or TIF. The school district said it has partnered with city council and the city on TIFs historically.

The school district says in 2019, it gave $85 million to help develop the Knowledge Park area.

District officials allege the city has not met certain terms from that deal.

“As of today, the City of Rock Hill has failed to report their spending of the school district’s money in a requested independent audit, the zoning issue is still not resolved, there is no opportunity for students to learn in a dedicated space in Knowledge Park and the City of Rock Hill has fraudulently overcharged the district for utilities for the sum of $23 million dollars,” the news release reads.

The City of Rock Hill addressed the lawsuit in a statement, saying it had fulfilled the obligations outlined in the deal. It said the school district’s lawsuit is “without merit” and called the district’s strategy an “aggressive, confrontational tactic to bully the City.”

>> Read the lawsuit here.

Read the full statement from the City of Rock Hill below:

“The City of Rock Hill and the Rock Hill School District No 3 have enjoyed a long history of cooperation and mutual assistance to benefit their common taxpayers and serve the children of Rock Hill. Our children are our primary mission and should be the focus of every decision we make. The leadership of the School District has clearly lost its focus with regard to this mission.

“This dispute stems from agreements related to the critical textile corridor revitalization project, which has been a resounding success for the citizens of Rock Hill. The City has met all obligations required under this agreement with the School District – an agreement that has already resulted in the City providing over $6,000,000 in costs savings for the School District since 2020 .

“We are disappointed with the current dispute and have made every reasonable effort to work with the School District – as we have always done in the past. Regrettably, the School District has chosen this aggressive, confrontational tactic to bully the City and extract terms more favorable for the School District than the terms provided in the parties’ written and executed agreement.

“The School District’s complaint against the City is without merit and the City will address the legal merits in that forum.

“The City does not believe in addressing, through a public back-and-forth, its differences with another party.”

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