No Htax moratorium for York County

York County won’t stop taking capital grant requests for hospitality projects, though it still could be a while before more applicants receive funding.

York County Council decided May 2 not to put a “short-term moratorium” on the requests. That proposal came from the county hospitality tax advisory committee after recent project approvals dwindled from what was a fund of about $6 million to just more than $756,000.

Chairman Britt Blackwell said the moratorium would have made “official what we already have to do anyway.”

“In reality, there is no money,” he said.

Beginning last year, the advisory committee recommended and Council approved money for a Lake Wylie waterpark, multipurpose fields in Fort Mill and a recreation complex in Lake Wylie. About $500,000 per year goes to festival and event promotion, too.

Pending projects in Fort Mill, Tega Cay, Clover and on Catawba Indian land add up to another $11 million the fund doesn’t currently have. They include a film studio, regional park dinner theater expansion and community park. The county Convention and Visitors Bureau wants money for a relocation, and the Lake Wylie Visitor Center wants operations money.

The hospitality tax, a 2 percent charge on food and drink in unincorporated areas, has to go toward tourism-generating projects. Local restaurants will generate an estimated $2.2 million this year, and the county receives monthly checks from the state.

While no one on Council argues the amount of money remaining, several members had concerns with blocking new applications.

“It’s the role of this Council to decide whether or not a project should be funded,” said Councilman Michael Johnson (R-Dist. 1). “It is the role of this (advisory) group to determine whether or not you’ve met all the criteria.”

As money comes in, smaller capital requests could make sense.

“I don’t know how long you need to wait before you say, hey, I’m willing to give maybe $100,000 to this capital project or $250,000 to this capital project,” Johnson said.

He and others are concerned if applications are blocked, there is no set plan when to allow them again.

“For the longest (time) it did sit there,” said Councilman Bruce Henderson. “It sat there and nothing was done with it, and it’s not the government’s place to just sit here and hoard up money.”

Johnson and Henderson represent areas generating the most hospitality tax revenue. Restaurants along the Carowinds corridor and in Lake Wylie provide much of the annual funding.

Henderson said while government shouldn’t overspend money, it shouldn’t tax just to tax, either.

“If we don’t keep moving things along, after a while you can put yourself in a little danger of forfeiting your money,” he said. “I don’t want to get into a situation where that could come up.”

Councilman Chad Williams (D-Dist. 7) said a delay in applications could allow for a master plan to guide spending, rather than simply waiting until more money is available to spend first come, first serve. Councilwoman Christi Cox (R-Dist. 5) sees waiting on a master plan as the most equitable way to determine spending.

Otherwise money will be spent as fast as it comes in, she said, which is what led to the low fund now.

“The problem is, it’s like a race to who gets the money,” Cox said.

Johnson said Council doesn’t “have to spend money if we don’t want to,” but keeping the process going keeps money from stockpiling and options open.

“I don’t want to see good projects sitting there while we wait on money to build back up again,” said Councilman Robert Winkler (R-Dist. 3).

Councilman William “Bump” Roddey (D-Dist. 4) said the way to be aware of good projects, is to keep the door open for them.

“If we’re not accepting applications we may miss out on a good opportunity,” he said.

This story was originally published May 6, 2016 at 7:29 PM with the headline "No Htax moratorium for York County."