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Tournament organizers have searched for months for a successor to Verizon, seeking a new corporate sponsor for $7 million to $8 million per year.
They have spoken with interested executives, said Simon Fraser, chairman of the Heritage Classic Foundation's board of trustees, but those conversations have not yielded fruit.
"It's hard to get people to commit," Fraser said.
LOCAL GOVERNMENT REQUESTS
The topic will come before the Hilton Head Town Council on Tuesday. The grant would come from the town's general reserve account that totals about $13.5 million, Mayor Tom Peeples said.
If a grant becomes necessary as the tournament nears, Peeples said he thinks it would be appropriate because the event brings the town national and international attention, as well as many other benefits.
"We could talk all day about the importance of the Heritage," Peeples said.
Last year's 42nd annual Heritage had an estimated economic impact of $81.9 million, according to a study by Clemson University and the University of South Carolina Beaufort. The tournament generated more than $4 million in net revenues for local governments and more than $8.5 million in net revenues for the state, the study said. It has generated more than $20 million to local charities since 1987, according to the Heritage Classic Foundation.
The resolution says the grant would be "in the best interests of the town and its citizens, residents and guests." It cites tournament history, its economic impact, media exposure, support among volunteers and role as a source of community pride.
County Council's Finance Committee could discuss the Heritage as soon as Wednesday, said Councilman Stu Rodman, the committee's chairman.
Although county officials have not formally received a request for $1 million, "that figure certainly has been suggested," said Council Chairman Weston Newton.
"Clearly, the economic impact is very significant to Beaufort County," Newton said. "I believe a government backstop should include the town, the county and the state."
The county could use previously accumulated taxes levied on overnight lodging and prepared food and beverages, he said. The county has about $4 million in those accounts it is saving for tourism-related projects, such as revamping Fort Fremont or creating a park along the Okatie River at Camp St. Mary's.
Councilman Steve Baer of Hilton Head has said he wanted more information about the tournament's contract with the PGA Tour and its impact on accommodations and hospitality taxes.
Council members need to scrutinize such information if they're going to consider "what some may perceive as a bailout," Baer said. "If they're going to want money from us, we owe it to the taxpayer to show we're spending it wisely."
STATE, CORPORATE HELP?
Even if the town and county participate, their contributions would provide only part of what tournament organizers need, Fraser said.
The foundation has about $4 million in reserve, but it wouldn't be prudent to tap all that money in a single year, he said.
If organizers can reach part of their goal, it's possible a "presenting sponsor" could erase the remaining shortfall, he said.
Organizers have not discussed the matter with Port Royal, Beaufort or Bluffton officials, he said.
It's too early to say if tournament organizers will seek aid from South Carolina, Fraser added.
The General Assembly convenes in January. Two related proposals did not pass this year: one would have allowed the county to borrow up to $10 million from an insurance reserve fund, and the other would have allowed the county's municipalities to impose a sales tax of as much as 1 percent to pay for tourism marketing and tourism-related capital projects.
