Gov. Mark Sanford says he has "one last chess move" up his sleeve to
foil an unprecedented set of tax breaks aimed at luring a major outdoor
retailer to North Charleston.
Unless lawmakers reconsider legislation crafted for outfitting giant
Cabela's, Sanford said Thursday he may ask an arm of the state Commerce
Department to oppose the incentives created in that bill.
The Coordinating Council for Economic Development, a 10-member panel
that includes some Sanford appointees, must approve certain parts of the
package. While the council could not derail the deal entirely, it could
throw a wrench into the works, the governor said.
Sanford tried to kill the bill, which for the first time in state
history created tax breaks and other incentives for retail businesses.
Lawmakers overrode his veto in June.
Sanford said he opposes the legislation because it would force other
Palmetto State merchants to subsidize a multimillion-dollar competitor.
"We would welcome them (Cabela's) to South Carolina, but we have real
problems doing it in this particular way," Sanford said.
The outfitter is said to be eyeing a North Charleston site known as the
Ingleside Plantation tract, at Interstate 26 and U.S. Highway 78. It would
be the company's first South Carolina store.
Competing retailers say they don't have a problem with Cabela's setting
up shop in the state. But most oppose the use of incentives.
"It would give Cabela's an unfair advantage," said Stu Utgaard, chief
executive of the Sportsman's Warehouse, which recently opened its first
South Carolina store in Columbia.
Local retailers agreed.
"I still don't believe in corporate welfare," said David Clifford,
owner of the Seacoast Sports and Outfitters store near Kiawah and Seabrook
islands.
Clifford said if the state is going to offer tax breaks to big
retailers, it should offer them to small, local businesses as well. "If
everybody benefited ... I would strongly support it," he said.
Sanford said he plans to urge lawmakers to nix the deal when they
return to the statehouse in January.
"The store hasn't been built yet," Sanford said. "There is still a
chance to get state policy right."
Last month, Sanford wrote to about three dozen Charleston-area hunting,
fishing, boating and camping stores, asking for their help in criticizing
the law.
While incentives are common to lure large industrial or manufacturing
projects, they are unusual in the retail sector, given the highly
competitive nature of the industry and the mostly low-paying jobs it
creates.
The legislation passed in June was tailored specifically for a chain
like Cabela's, but did not identify the company by name. It offers sales
and income tax credits to an "extraordinary" retail destination that has
an aquarium or museum and draws at least 2 million visitors a year. It
also required a minimum $25 million investment and at least $2 million a
year in sales-tax collections.
Other states have offered incentives to the retailer, stirring
controversy in some places. The company has said that the negotiation of
tax breaks is a key part of its business strategy.
The bill's sponsors and other supporters, including North Charleston
Mayor Keith Summey, have said incentives are justified because Cabela's
stores double as tourist attractions.
The chain is known for its expansive layouts, which often feature
aquariums, restaurants, gun libraries and fake indoor mountains adorned
with wildlife taxidermy displays. The company, which also has a sizeable
catalog business, posted a $72.6 million profit last year.
Local tackle shop owner Mike Able said he's talked to dozens of
retailers and customers across the state who oppose the Cabela's incentive
plan.
Many have contacted lawmakers to voice their opinions, said Able,
co-owner of Haddrell's Point Tackle & Supply.
But he doesn't expect the General Assembly to change course. "That's
like admitting they were wrong," he said. "There aren't many politicians
that would do that."
Reach Caroline Fossi at 937-5524 or cfossi@postandcourier.com.