A $55 million arena could be coming to USCB’s campus. Who’s paying for it?
An arena costing $35 million to $55 million could be coming to the University of South Carolina-Beaufort’s Bluffton campus.
The facility, proposed by the university in February, would be used for large events, classrooms and could allow the university’s athletic program to jump to the NCAA and add new sports, such as basketball.
The convocation center, which also would be used as an arena and convention center, is part of the university’s plan to increase its footprint in the Lowcountry and obtain more funding from the state. Plans for the facility come just a year after USCB completed construction on its $25 million Hilton Head campus and five years after the university built a $3.5 million student recreation center on its Bluffton campus.
An economic impact study of the center, conducted by the Regional Economic Analysis Laboratory at Clemson University, estimates construction would create between 124 and 203 jobs in Beaufort County. The study projects that the center would contribute an average of $3.4 million to $4.3 million to the county per year after 2025 and create about 50 permanent jobs.
Although the total cost of the center is still unknown, S.C. Sen. Tom Davis, R-Beaufort, said the plan is for Beaufort County and the state to split the cost of construction, with each paying $24 million.
If funding is approved, construction of the center would start in 2021 and be complete in 2024, according to the economic impact study.
Beaufort County Administrator Ashley Jacobs said she met with USCB Chancellor Al M. Panu, who told her the facility would cost $48 million.
“USCB’s growth, along with growth throughout the region, has produced a need for additional space — specifically for a space large enough to accommodate commencements, trade shows, and athletic events as well as classrooms and research laboratories,” Panu said in an email Thursday.
Due to the “scarcity of large-scale venues in the area,” Panu said he hopes the convocation center will be an economic driver for the region.
The university is requesting at least $20 million from Beaufort County and plans to pay for the rest of construction costs with state appropriations.
Davis said has asked the state to redirect $6.2 million in already approved funds toward construction of the facility and for an additional appropriation of $5 million. The House Ways and Means Committee already has $6 million budgeted toward USCB, Davis said.
The rest of the funding will be paid through additional state appropriations “in future years totaling $6.8 million,” he said.
“[The center] is absolutely critical to USC Beaufort’s growth plans,” Davis said in his request to the state. “Not only is the space desperately needed for operations, this facility would allow USC Beaufort to move from NAIA to NCAA Division II — a move that would allow it to add new sports (e.g., basketball) and greatly increase its attractiveness to potential students.”
Citing recent increases in state funding, Davis said Beaufort County and USCB are “finally being treated equitably with state appropriations.” He said he expects USCB’s funding level to be at the state average for higher education institutions this year.
The center would host university events and could “potentially draw additional visitors to the region,” the economic impact study said.
How will Beaufort County pay for this?
Jacobs, Beaufort County’s administrator, said USCB has asked the county for about $20 million to fund construction of the center. She said the county would most likely pay that share through tax increment financing (TIF), but it has to be approved by council.
Under the TIF plan, the county would create a special tax district in which future revenues from local taxes would be diverted to pay for the construction of the center.
“Funding USCB and TCL for the purposes of economic development in Beaufort County are some of the county’s top goals,” Jacobs said. “It’s a priority, and [the county] is in support of the project.”
Jacobs, however, said the county has not been provided a timeline for funding or construction.
