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Sembler plans a 280-acre shopping center and luxury outlet mall called Okatie Crossings in Beaufort and Jasper counties.
During about an hour and a half of debate before an audience that included busloads of Jasper County residents and officials, Sen. Tom Davis, R-Beaufort, continued to make his case against the incentives.
He then faced extended questioning from state Sen. Robert Ford, D-Charleston.
Sembler officials say the incentives are critical to their plans to invest $400 million and create as many as 2,500 jobs. Sembler plans to create about 1.6 million square feet for national retailers and Italian and American designers at the intersection of U.S. 278 and S.C. 170.
The incentives would return to developers a portion of sales tax revenues generated by some "extraordinary commercial facilities." The tax breaks would be used to offset building costs. Developers would have to invest $200 million and create 1,250 jobs for the incentives to kick in.
Debate on the bill is scheduled to resume at 11 a.m. today.
'NOT THE AMERICAN WAY'
Davis said the incentives would distort the free market by creating a subsidized "black hole" that would suck up existing retail activity and cripple businesses in his district.
People in his district, which includes several ailing retail centers that are in or near foreclosure, do not understand why the state is considering aid to out-of-state developers when others who built without the benefit of incentives are struggling.
"That is not the American way, and I know it's not the South Carolina way," Davis said.
Davis said he would not object if Sembler put others out of business without the incentives.
"That's capitalism," he said.
Intervening in that system would undermine the free market, which Davis said is "the thing that made this country great."
It also would not be fair to smaller businesses that can't afford to "shake down" governments for financial inducements, Davis said.
"They don't have the time to come up to Columbia to lobby for favors," he said. "They ought not have to do that."
JOBS VS PHILOSOPHY?
Ford said it seems Davis is using an "ultra conservative" theory to stand in the way of prosperity for residents of a relatively poor, rural region.
"When you have the chance to do something for these meek people, you turn your back on them," said Ford, who at one point asked Davis if he attended church. Davis said he regularly attends mass.
Ford also accused Davis of discriminating against Sen. Clementa Pinckney, D-Ridgeland, one of the bill's sponsors.
Ford said Davis appears willing to tell the people of Jasper and surrounding counties to "go to hell because of philosophy."
Davis vehemently objected to the notion he is working against Jasper County residents. He argued he has worked "harder than anybody" and spent many uncompensated hours in an attempt to bring a shipping port to that county.
Such a facility would bring "real jobs and real economic growth to Jasper County," Davis said.
Ford also said the state should be willing to consider some incentives for Sembler because it has previously granted them to manufacturers such as Boeing, which Ford called "the third richest company on the planet earth."
Boeing plans to build an aircraft assembly plant in North Charleston.
Ford said average South Carolinians don't see any difference between retail and manufacturing jobs.
Davis said that distinction is significant because residents of a given area spend about the same amount no matter how many shops are nearby.
Ford closed by suggesting Davis should be more interested in securing state aid for struggling malls in his district rather than stopping Pinckney's plans to create a new one. Government helps companies in need all the time, he said.
"That doesn't make it right," Davis responded. "At some point, we have to stop."
Offering aid to any struggling firm is not practical and could bankrupt the state, he said.
Sen. Hugh Leatherman, R-Florence, interrupted the adversaries late Wednesday afternoon to ask Davis if he thought Okatie Crossings would result in new sales. Leatherman said he would be "stunned" if a project of that scale did not.
Davis said it might, but added that those benefits probably would not be enough to justify such a substantial tax break.
When Leatherman asked Davis if he thought the bill could be crafted in a way to allow the project to happen while still protecting the state's general fund, Davis said he remains opposed to any retail incentives.
"Retail is essentially a fixed pool," he said. "You're going to have at best a wash of jobs."
