Tourism Grant Program Again Passes N.C. House Committee
from the Associated Press
A program to help finance publicly owned sports arenas, convention centers and other projects designed to increase North Carolina tourism has again passed a House committee.
The House Finance Committee agreed Thursday to the grant program, which ultimately could hand out up to $60 million annually in the form of rebates on taxes the projects are estimated to generate.
The same committee approved a similar bill last year, but the House budget-writing panel later narrowly rejected it.
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Critics have complained the measure is a backdoor way for the city of Charlotte to help pay for a planned arena for its new NBA franchise.
But supporters, many of whom are from the Charlotte area, say the bill will help local governments large and small create attractions that will lure out-of-town residents to visit and spend their money, generating additional revenues and jobs.
While textiles and tobacco have struggled in recent years, tourism is "our own fastest natural growing industry," said Rep. Beverly Earle, D-Mecklenburg, one of the bill's primary sponsors. "It should generate revenue for the state. I think it's just good policy."
Local government could apply for grants for tourism projects in which they own a minimum of 25 percent or 50 percent, depending on where the project is located.
Qualifying investments for the program would be at least $500,000 in the state's poorest counties. The committee lowered the minimum for projects in the wealthiest counties from $10 million to $4 million before approving it on a voice vote with several no votes.
The grants would provide rebates equal to as high as 25 percent to 40 percent of the sales and business privilege taxes estimated to be generated by the new facilities.
A committee would approve no more than 15 projects and $20 million in grants in any fiscal year. The program would expire in 2006 but the grants could continue for a 10-year period.
Since the bill failed last year, the NBA has approved the Charlotte franchise and the city has come up with a financing plan for the $265 million downtown arena. The franchise name - the Bobcats - and logo were unveiled Wednesday.
"This (bill) has nothing to do with the arena in Charlotte," Rep. Becky Carney, D-Mecklenburg, told the committee.
"The financing for the new arena is a done deal. The Bobcats are already coming to Charlotte," she said.
Rep. Edgar Starnes, R-Caldwell, an outspoken critic of the bill, said there's nothing in the measure that would prevent Charlotte from still seeking the rebates. Starnes said the bill is a disservice to Charlotte residents who voted in 2001 against using taxpayer money to build an arena to keep the Hornets from leaving Charlotte.
"There's nothing wrong with businesses to foot their own bill out of their profits," Starnes said. The new arena package would require the Bobcats to pay $23 million for the new building.
A city of Charlotte spokesman wasn't available for comment Thursday. Earle said it's unfortunate that some lawmakers see the measure as the "Charlotte arena" bill.
"A lot of folks would rather vote the whole concept down rather than let Charlotte benefit," she said.
House Democratic Leader Joe Hackney supported the measure in committee but hoped the program wouldn't set a precedent for other industries seeking similar tax rebates.
"I don't think we'd have the bill if it wasn't for Charlotte," said Hackney, who represents Orange and Chatham counties. "It will not help my area."
Other projects that could potentially qualify for the grants include a performing arts center in Durham, minor league baseball parks in Charlotte and Asheville, a Marine museum in Jacksonville and convention centers in Concord and Gastonia.
The bill now goes to the House Appropriations Committee, which rejected the bill last year.
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