“Business” Groups Won’t Support Sembler Incentives

By FITSNews || Two of South Carolina’s leading “pro-business” groups are refusing to support a controversial $134 million incentives package for a politically-connected, out-of-state developer – a surprising turn of events given each organization’s support of similar status quo deals in the past.

SC BIPEC announced that it was opposing the legislation on Thursday, while the S.C. Chamber of Commerce – typically a reliable voice in support of big government giveaways – announced moments later that it would remain neutral in the debate over the incentives package, which if passed would provide $134 million in tax breaks to fund the construction of a 280-acre, 1.5-million-square-foot retail facility in Beaufort County.

Proponents say the facility will create thousands of jobs.  Opponents say that job growth will come at the expense of local retailers, who will also be forced to shoulder a heavier tax burden.

This dual rejection of the “Mega Mall handout” comes a day after the project’s leading legislative antagonist, Sen. Tom Davis (R-Beaufort), took to the floor of the State Senate to offer an impassioned defense of the free market – as well as local retail establishments which are being threatened by the unfair competitive advantage lawmakers are seeking to bestow on GOP heavyweight Mel Sembler.

Davis said he would not object to the Sembler Company building a “Mega Mall” in Beaufort County, just as long as it wasn’t built using taxpayer giveaways that weren’t available to other businesses.

Apparently, SC BIPEC and the State Chamber – despite having been exposed in the past as supporters of our state’s failed economic development  – agree with that position.

Good for them – the merits of this debate are obvious.

First, this developer has a poor track record when it comes to these sorts of public-private partnerships.  Second, the incentives being offered in this case are of dubious legality.  Third, this facility will do nothing but cannibalize sales (and ultimately jobs) from existing, homegrown retailers who aren’t getting multimillion dollar handouts (but who will most assuredly have to pay for this one).

The fourth reason is the most fundamental to our opposition, though – the fact that government shouldn’t be picking winners and losers in the marketplace.  Period.

As the proposed Sembler deal moves closer to a resolution, count on FITS to bring you comprehensive coverage including how each lawmaker voted on the legislation as well as the various political “winners” and “losers.”

Right now the “biggest loser” appears to be S.C. Gov. Mark Sanford, whose efforts to play both sides of the issue (presumably in an effort to repay political favors) wound up backfiring on him … big-time.