rss
mobile
Feeds
But the state might be able to provide a loan.
South Carolina lawmakers are considering a proposal that would allow the state to loan Beaufort County as much as $10 million "to promote tourism."
The four-sentence proposal does not specifically mention the Heritage, but White said he submitted it to provide a safety net for Hilton Head Island's marquee sporting event. Verizon won't return as the tournament's title sponsor after this year.
"It's narrowly drawn to help the Heritage," White said Tuesday of the proposal.
This year's 42nd annual event will be held April 12-18 at Harbour Town Golf Links.
The proposal has been approved by the House Ways and Means Committee and will be added to the committee's proposed state budget.
White said he submitted it after speaking with Rep. Bill Herbkersman, a Bluffton Republican and fellow Ways and Means member.
The proposal would allow the S.C. Department of Parks, Recreation & Tourism to enter a loan agreement "on behalf of the state with Beaufort County."
However, White said Tuesday he expects the county or any of its municipalities could enter the agreement.
In an e-mail, Herbkersman also said one government entity or a combination could participate.
The proposal calls for the money to come from the state's Insurance Reserve Fund, which insures state agencies' property.
The money would be paid back, along with any lost interest on earnings, from "Beaufort County's local accommodations taxes," the proposal states.
White said he did not know the amount the borrower would have to pay to make up for lost earnings.
"It's not like a bank, where you're making money," he said. "It's just covering what would've been earned."
White said Tuesday he did not have a specific source of funds for repayment in mind. A bill that would allow Beaufort County municipalities to increase their sales tax rates by one percentage point for as many as 10 years to pay for tourism promotion and capital projects would be one possibility, White and Herbkersman said.
The state Treasurer's Office would approve the terms and conditions of the loan and ensure it is fully repaid within five years.
Details of the loan would be worked out between the parks department, the state treasurer and people in Beaufort County, White said.
"The locals should know how best to pay it back," he said.
Chad Prosser, director of the state parks department, mentioned the loan Monday as a way to ensure the Heritage stays on Hilton Head, according to the (Myrtle Beach) Sun News.
"This was a creative solution to provide some cushion if it were to be needed," Prosser told the Sun News. "We hope it won't be needed."
Several members of Beaufort County Council and staff said they were not aware of the proposal until Monday or Tuesday.
County administrator Gary Kubic said he first saw it Tuesday. He declined to say if he would recommend the county take out the loan if necessary.
"Each case would be reviewed on its own -- Heritage or any other," Kubic said. "If it looks good, we would support it."
White said he intended the proposal to provide a flexible, low-cost mechanism that would allow the state to demonstrate its commitment to the tournament. If local communities don't want to take out the loan, they won't have to, he said.
The state periodically loans money from the fund for a variety of other purposes, he said.
"This isn't the first time we've done anything like this," White said
A NASCAR fan, he compared the Heritage's significance to that of a stock-car race.
Darlington had two of those before the racing series took one away, and White said the state shouldn't let another of its prized professional sporting events disappear.
"It's a vital asset to the state," White said of the Heritage. "If you lose something of the magnitude of a PGA-sanctioned golf tournament, you probably will not get one back."
