SAY NO TO OUTDOORS RETAIL SUBSIDIES

FRIDAY, SEPTEMBER 22, 2006 8:13 AM

Sanford still on the hunt
Panel could hinder Cabela's incentives

BY CAROLINE FOSSI

The Post and Courier

Gov. Mark Sanford says he has "one last chess move" up his sleeve to foil an unprecedented set of tax breaks aimed at luring a major outdoor retailer to North Charleston.

Unless lawmakers reconsider legislation crafted for outfitting giant Cabela's, Sanford said Thursday he may ask an arm of the state Commerce Department to oppose the incentives created in that bill.

The Coordinating Council for Economic Development, a 10-member panel that includes some Sanford appointees, must approve certain parts of the package. While the council could not derail the deal entirely, it could throw a wrench into the works, the governor said.

Sanford tried to kill the bill, which for the first time in state history created tax breaks and other incentives for retail businesses. Lawmakers overrode his veto in June.

Sanford said he opposes the legislation because it would force other Palmetto State merchants to subsidize a multimillion-dollar competitor. "We would welcome them (Cabela's) to South Carolina, but we have real problems doing it in this particular way," Sanford said.

The outfitter is said to be eyeing a North Charleston site known as the Ingleside Plantation tract, at Interstate 26 and U.S. Highway 78. It would be the company's first South Carolina store.

Competing retailers say they don't have a problem with Cabela's setting up shop in the state. But most oppose the use of incentives.

"It would give Cabela's an unfair advantage," said Stu Utgaard, chief executive of the Sportsman's Warehouse, which recently opened its first South Carolina store in Columbia.

Local retailers agreed.

"I still don't believe in corporate welfare," said David Clifford, owner of the Seacoast Sports and Outfitters store near Kiawah and Seabrook islands.

Clifford said if the state is going to offer tax breaks to big retailers, it should offer them to small, local businesses as well. "If everybody benefited ... I would strongly support it," he said.

Sanford said he plans to urge lawmakers to nix the deal when they return to the statehouse in January.

"The store hasn't been built yet," Sanford said. "There is still a chance to get state policy right."

Last month, Sanford wrote to about three dozen Charleston-area hunting, fishing, boating and camping stores, asking for their help in criticizing the law.

While incentives are common to lure large industrial or manufacturing projects, they are unusual in the retail sector, given the highly competitive nature of the industry and the mostly low-paying jobs it creates.

The legislation passed in June was tailored specifically for a chain like Cabela's, but did not identify the company by name. It offers sales and income tax credits to an "extraordinary" retail destination that has an aquarium or museum and draws at least 2 million visitors a year. It also required a minimum $25 million investment and at least $2 million a year in sales-tax collections.

Other states have offered incentives to the retailer, stirring controversy in some places. The company has said that the negotiation of tax breaks is a key part of its business strategy.

The bill's sponsors and other supporters, including North Charleston Mayor Keith Summey, have said incentives are justified because Cabela's stores double as tourist attractions.

The chain is known for its expansive layouts, which often feature aquariums, restaurants, gun libraries and fake indoor mountains adorned with wildlife taxidermy displays. The company, which also has a sizeable catalog business, posted a $72.6 million profit last year.

Local tackle shop owner Mike Able said he's talked to dozens of retailers and customers across the state who oppose the Cabela's incentive plan.

Many have contacted lawmakers to voice their opinions, said Able, co-owner of Haddrell's Point Tackle & Supply.

But he doesn't expect the General Assembly to change course. "That's like admitting they were wrong," he said. "There aren't many politicians that would do that."

Reach Caroline Fossi at 937-5524 or cfossi@postandcourier.com.