Melvin F. Sembler is “kind of a big deal.” The Republican fundraiser and Atlanta-based real estate developer was U.S. ambassador to Italy under President George W. Bush and ambassador to Australia under his father, President George H.W. Bush.
He’s “connected,” in other words, and in case those connections weren’t good enough, he’s hired an army of lawyers, lobbyists and consultants with Palmetto political connections to push through a massive incentive package for his proposed “high-end retail outlet” in Jasper County, S.C.
Richard Quinn … Larry Marchant … Burnie Maybank … Bob McAlister …
These are just a few of the names reportedly suckling up to the Sembler teat, and we wouldn’t be at all surprised to learn that the company was spending similar amounts of coin to purchase “credibility” within South Carolina’s African-American political establishment, which is pushing this development the hardest.
Sembler has also reportedly offered various “carrots” to other S.C. politicos that were turned down, in one case because the alleged “carrot” appeared to violate state ethics guidelines.
Anyway, there’s a reason all that money is being thrown around – because Sembler would be unlikely to win its quest for a massive tax break based solely on its merits.
Sure, Sembler’s “Mega Mall on the Okatie” may bring the 2,500 jobs its multiple mouthpieces are promising, but there are far more questions than answers surrounding this deal – which is seeking a whopping $132 million in tax incentives from state lawmakers.
That’s up front money, too.
First, is this development what Sembler says it is?
Because there has been considerable speculation that the company is really planning on building a “low-end” outdoor mall – not the Armani, Ferragamo and Neiman-Marcus outlet haven that Sembler executives are touting.
Also, there are legitimate concerns as to whether or not any new mall (high-end or low-end) would cannibalize existing retailers – and their jobs.
Obviously, we would have no problem whatsoever with such cannibalization under normal circumstances (that’s the way the free market rolls), but not when Sembler is getting a $132 million handout from the state that will ultimately have to be absorbed by the local tax base.
Seriously, Sembler can cannibalize all they want, but not when they’re getting gargantuan tax breaks that their competitors aren’t.
Also, is this the sort of deal that government should be getting involved with in the first place?
We supported the recent incentives package for Boeing (grudgingly) because we believe that company’s manufacturing facility has the potential to become an “anchor industry” in the S.C. Lowcountry – similar to BMW in the Upstate. Also, it’s not going to be directly competing against any existing businesses in the state (and using an unfair tax advantage to do so).
Plus, the 3,800 jobs Boeing is bringing to the state are all high-paying positions, meaning they will have a spin-off impact even if many of them are not initially filled by South Carolina workers, as is expected to be the case.
Now … what about those “Mega Mall on the Okatie” jobs?
Yeah … these will obviously be hourly, low-wage positions with little to no potential for “spin-off” positions – but plenty of potential for stealing jobs from existing businesses.
Again, unlike the whack job environmentalists in this state who oppose everything just to oppose it, we have no problem whatsoever with this development (or its developer) doing that.
We just don’t think that they should be given a $132 million handout just because they’re politically-connected and have purchased (or are alleged to have purchased) the services of a bunch of big-shot lawyers, lobbyists, consultants and … wait for it … legislators?
Yeah … you wouldn’t believe some of the backroom chatter we’re hearing on this deal.
Seriously, give us $132 million and we’ll (cough) create some jobs, too.
The S.C. Policy Council agrees with us, incidentally. You can check out their study of this incentive package (as well as the tree-hugger report) below …
Incidentally, House Minority Leader Harry Ott and RINO Ways & Means Chairman Dan Cooper were recently appointed to the conference committee that’s currently working on the Sembler boondoggle. That signals to us that the legislature intends to muscle this “Mega Mall Bailout” through its few remaining legislative hurdles as soon as the 2010 session begins this month.
Unless we do something to stop it first …
WEB EXTRAS
Sembler Deal Analysis (Executive Summary) – S.C. Policy Council
Sembler Deal Analysis (Full Report) – S.C. Policy Council
Mega Mall on the Okatie – S.C. Coastal Conservation League Report
Tax Incentives For Okatie Crossings Questioned – The (Columbia, S.C.) State
By Matt January 8, 2010 at 4:04 pm
I would be curious as to what Senator Tom Davis’ position is on all of this. I imagine a majority of people living in Beaufort County wouldn’t mind seeing their shopping options dramatically increased without having to go down to Savannah.
By CNChapin January 8, 2010 at 4:23 pm
That good ol’ boy monster just keeps rearing its ugly head here in this state over and over again. Let’s put that monster to sleep so this state can return to greatness.
Oh and for anyone saying that it is a good idea to build the mall and have government subsidize or otherwise assist with it, I say IF there is TRULY a demand for the place, then investors would be ready to foot the bill without government subsidies. That’s all of our money they’re trying to steal. If there is not enough demand to make the risk of building the place without government funds enticing, then don’t damned build it.
Quit raping the public for your pet projects, you jerk-wads. The area gets 2500 jobs while the owners get filthy rich with tax payer assistance. Get rich with your own dollars and quit using mine, you pricks. Where is my pitchfork and torch? Enough of these slimy pieces of trash and their holier-than-thou under-handed ways of stealing from the public!
By Billy Bob January 8, 2010 at 4:57 pm
This is about as sorry a use of taxpayer $$$ as will come along in your lifetime. Unless, of course, I can get a deal like this too! Pure pork and it’s not even a Federal project.
Let’s see? 2,500 minimum wage jobs for $132,000,000. That’s $52,000 per job. Wow, in about 500 years, these jobs will generate enough payroll taxes to pay that back.
By baker January 8, 2010 at 5:19 pm
Interesting story, Will.
By Reginald January 8, 2010 at 6:27 pm
Glad to see you finally picked up on this. (The writer flagged this boondoggle a couple of months ago.)
Retail development is in the toilet. Vacany rates in that market are at all time highs, meaning there is plenty of vacant space available if the retailers really wanted to go into that market. They don’t, and Semblers PR releases to the contrary no major retailers have committed to the proposed mall.
Sembler has succeeded in snowjobbing the goobers in Hardeeville just like the so-called Riverport carpetbaggers.
There’s another con job for you to look into. The developers have ginned up a report backed by Hardeeville to jusitfy spending $175M in state and federal money to build an overpass on I95 – the so-called “exit 3″ – whose only purpose is to access the residentially zoned land the developer owns in the swamp on the west side of I95.
By south mauldin January 8, 2010 at 6:30 pm
C’mon, Mr. Folks. It’s spelled T-E-A-T. You of all people should know how to spell that.
Good story, though.
By madcock January 8, 2010 at 6:41 pm
Republicans never met a rich man they weren’t dying to give welfare to.
By Huhhh??? January 9, 2010 at 4:58 pm
I’ve been following this in The State.
All anyone needs to do is drive to Santee, near the intersection of I-26 and I-95 and visit what’s left of the Santee Outlet Mall.
The example to be learned from there is that if you don’t locate massive malls where there is a massive population, or at least enough to support the mall if the traffic weren’t zooming by, it will never be fully occupied and will dwindle down to nothing.
Is Sempler connected to The Beach Company? They are showing what maggots on the taxpayers they are in Charleston and Clarendon counties.
By Crash January 14, 2010 at 6:30 am
Does this mean that you will be regurgitating every story that The Nerve prints daily? Next time just cut and paste.