January 15 2010
Truth, Transparency and Accountability
Tagged Under : Okatie Crossings, Sembler, Tax Incentives
Dear Hilton Head Island Voter,
The “Press Release” below was sent to The Island Packet today.
FOR IMMEDIATE RELEASE
(Hilton Head Island, SC) Regarding the Okatie Crossings development and proposed tax incentives for developer The Sembler Co., I believe this project represents bad tax policy – pure and simple.
I reference the following from The Island Packet’s January 14, 2010 coverage of the Sembler retail mall project:
“Rep. Richard Chalk, R-Hilton Head Island, said a more extensive debate is needed about whether the state should grant tax incentives for retail enterprises. Such incentives historically have been used to lure firms that offer high-paying jobs in fields such as manufacturing — the BMW plant in Greer and the Boeing assembly plant planned for Charleston, for example.
That debate has not yet occurred because the incentives were included in a voluminous bill that also dealt with a host of other issues, he said.
“To facilitate such a debate, the provision that would benefit Sembler should be stripped and considered as a separate bill, Chalk said.
“That should be debated on its own merits,” Chalk said. “We really haven’t had a full hearing.”
The time to introduce nuances, such as those Rep. Chalk is now proposing, was during last session, when he voted – twice – for the incentives without conditions.
The only options that remain include: 1) the incentives as approved by the House, or 2) no incentives at all (they were deleted by the Senate in the version of the bill it passed).
Rep. Chalk’s concerns come too late. He should have been looking out for Hilton Head Island businesses when it was relevant, when he could have made an impact. Both Beaufort County Council and Hilton Head Town Council recently expressed strong opposition to special tax incentives for Sembler, and for good reason. The incentives would only result in local taxpayers shelling out more than $100 million toward Sembler’s building costs and be of little to no value in terms of economic development. The project would simply shift revenue generated through the economy from one place to another, with little net benefit – no additional revenue or jobs.
A year ago Rep. Chalk voted “aye” when the House voted to add the Sembler tax incentive to the bill (H. 3722) and even fought to keep the incentive after the Senate deleted it from their version. Today, during the 11th hour, it seems that public pressure has prompted Rep. Chalk to reconsider what appeared to be his unwavering stance on this issue.
The time for empty comments and meaningless actions is over. It is now time for some much needed, and deserved, truth, transparency and accountability.
Politics aside, please keep those effected by the disaster in Haiti in your prayers.
Best Regards,
Andy
