Carolina Panthers: $ 115 Million in Tax Relief for the Senate of the SC

COLUMBIA, SC

South Carolina is likely to provide $ 115 million in tax relief to the Carolina Panthers to move the headquarters and facilities of the Charlotte-based NFL team across the North American border and Rock Hill.

the tax reduction proposal voted in the state Senate 27-15 Thursday after a multi-day debate over the expected costs and benefits of South Carolina, as well as skepticism about granting financial assistance to the owner of the billionaire Panthers, David Tepper. The proposal must now obtain the final approval of S.C. House, a formality given that the House has already agreed in March.

The passage of this bill is arguably the greatest legislative achievement of Republican Governor Henry McMaster since he took office in January 2017, after Departure of former governor Nikki Haley. McMaster and leading House State officials announced the proposed tax breaks in March and berged his move to the House of Representatives two weeks later.

"This vote sends a resounding message to the world: South Carolina is committed to creating the most competitive business climate in the world so that South Carolina can take advantage of jobs created by excellent organizations like the @Panthers " McMaster tweeted Thursday after the vote, by adding the official hashtag of the team, #KeepPounding.

His passage was delayed by two months in the Senate by Dick Harpootlian, D-Richland, First Year Senator, who blocked a vote on the bill in order to force the state's Commerce Department to take the unprecedented step of publishing its secret cost-benefit analysis of the deal.

Harpootlian, who then hired an economist to question the forecast, lifted his objection to the bill on Tuesday, but urged his colleagues not to vote in favor.

"I came to the disturbing conclusion that the Panthers' proposal is just as ill-defined and unverified as the one presented to us and that it is based on a series of erroneous assumptions," he said. he declared during a long speech in the Senate.

"Think big"

The Panthers were waiting for the bill to pass before going forward with the project to buy up to 200 acres of land at Rock Hill and build a complex that should feature among the best facilities of the NFL.

Officials announced that the project would include an orthopedic sports medicine center employing around 200 people, as well as a hotel with at least 150 rooms and a space for conferences. This could also attract a head office and residential projects, said a team manager at The State.

The project also includes a new $ 40 million interchange on Interstate 77, allowing easy access to the complex in a traffic-jammed area. It is estimated that the federal government would pay about $ 20 million for this highway project. The state would inject $ 12.5 million – another source of heartburn for skeptical senators – and the city of Rock Hill would kick off: $ 7.5 million.

"There is a misunderstanding that we are building a small practice center," Mark Hart, vice president of Panthers Development, told The State in April. "But our new headquarters is only part of the project we want to build. … (Tepper) thinks big. "

The Panthers want to start work later this year and move into the complex in the first quarter of 2022.

"I'm having a party," Rock Hill Mayor John Gettys said Thursday. "What a great day for Rock Hill. … We are committed to (making sure) that it is bigger and better than anything anyone can imagine. "

A fight in the Senate

The Senate debate on the proposal lasted three days. On Wednesday, Tepper issued an ultimatum, telling reporters he would not transfer the team's operations to South Carolina unless the General Assembly offers tax breaks.

"It will cost us a lot of money to go to South Carolina," Tepper said. "We will have to spend real money to go. So we do not get that money from South Carolina, and that's it. There is a lot of money in a facility that we have to invest.

"They will have to decide whether they want it or not," said Tepper. "I'm going to stay in Charlotte. I could stay at home. "

Still, the proposal has generated much skepticism even before the start of the debate Tuesday.

Senators from all over South Carolina have asked why they should support tax breaks that would only benefit the north-central region of the state. Others have wondered why they should offer tax breaks to a team whose owner is worth more than $ 11 billion.

Harpootlian criticized the agreement reached in the Senate and said legislators had accelerated passage of the bill by the Legislature with no real debate or written promise from the Panthers on the project's economic benefits.

"We spent more time in committee discussing whether miniature horses should be considered farm animals rather than discussing this bill," Harpootlian said.

He asked Republican market-savvy senators how they explained to their constituents "this massive social aid for a single company and its billionaire owner".

He asked his fellow Democrats how they plan to explain "why a billionaire has received a $ 40 million infrastructure project and $ 115 million in tax giveaways when so many of our citizens' needs vulnerable have still not been satisfied. "

State Senator Wes Climer, a York Republican whose district would benefit from the project, defended the agreement in the Senate. He acknowledged that, according to Harpootlian, the Department of Commerce's economic impact projections were too optimistic, but taking the Panthers to Rock Hill would still be a huge advantage for South Carolina.

"It's probably not $ 3.8 billion," Climer said about the economic impact of the deal. "But it's still huge."

Climer, a financial advisor, also spent time explaining how tax incentives work.

The state will not write to the Panthers a check for $ 115 million. This will allow the team to retain the income taxes of its employees as long as it spends this money on the construction of the proposed Rock Hill complex.

"We do not give money," said Climer. "It's not taxpayers' money. This allows the Panthers (…) to obtain a temporary reduction in their taxes and they must use every cent invested to invest in their facilities. "

And after

The bill still needs the final approval of the House and the signature of Governor McMaster – two formalities.

Once the proposal becomes law, the team plans to buy up to 200 acres of Rock Hill land for the project. Team leaders have so far refused to confirm which Rock Hill property they had identified for the project.

However, a site map shared with The State indicates that the complex is planned in a Rock Hill neighborhood, just off I-77, between Dave Lyle Boulevard and Eden Terrace. The site map also shows the planned exchange of $ 40 million on I-77.

In recent weeks, the Panthers have stepped up their goodwill campaign in South Carolina.

In April, coach Ron Rivera, Panthers players and mascot Sir Purr visited the State House, hang pictures with McMaster and his staff.

Star quarterback Star Cam Newton made a surprise visit to a Columbia park earlier this month.

The bill was passed with the support of leaders of the State House, such as the Speaker of the House, Jay Lucas, R-Darlington; House Majority Leader Gary Simrill, R-York; Senate Finance Committee Chair Hugh Leatherman, R-Florence; and Senate Speaker Harvey Peeler, R-Cherokee.

This is a story in development. Come back for more updates and details.

Rock Hill Herald reporter John Marks contributed to this story.