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Following a brief
public hearing, Town Council approved the first reading of its
2007-2008 budget which includes $250,000 from state
accommodations tax monies (SATAX) for the proposed Performing
Arts Center (PAC) at Freshfields Village. This allocation was
previously reviewed and recommended by the State Accommodations
Tax (SATAX) Committee and the Town’s Ways and Means Committee.
The SATAX Committee met on March 23 to review requests for
nearly $1 million in state accommodations tax monies which will
be available for 2007-2008. These funds must be spent to promote
tourism in the area. According to the SC Code of Laws, section
6-4-25, “The advisory committee consists of seven members with a
majority being selected from the hospitality industry of the
municipality or county receiving the revenue. At least two of
the hospitality industry members must be from the lodging
industry where applicable. One member shall represent the
cultural organizations of the municipality or county receiving
the revenue.”
The Tourism Expenditure Review Committee (TERC) has oversight
authority on the expenditure of state atax monies. Their website
(http://www.atax.sc.gov/) contains a “Policy on the
Interpretation of “Tourism Related Expenditures.””
The law defines
tourism to mean “the activities of people taking trips outside
their home communities for any purpose.” . . . In fulfilling its
duty to determine if an expenditure is “tourism related,” the
Committee, in addition to considering the above-mentioned
50-mile radius, takes into consideration two additional guiding
principles . . . 1) That the expenditure must be used to attract
or provide for tourists. 2) The expenditure cannot be used for
an item that would normally be provided by the county or
municipality. With respect to the first test, the committee
seeks to distinguish between events or activities designed for
and attended primarily by those in the local community, from
events that are designed for and attended primarily by
non-residents who come from outside the local community.
In presenting the PAC
project at the SATAX Committee meeting, Town Council member and
chief advocate for the project Don McIver explained that
“residents don’t count at all for state ATAX” funding purposes.
“That’s the primary reason the Arts Council was created – they
put on performances for residents. ATAX is the reverse. . . The
primary purpose and focus has to be on visitors. . . We don’t
talk about residents when we talk about state ATAX funds.”
If the PAC moves forward and must rely, at least in part, on
state ATAX funds, the facility will have to be built and
marketed as a tourist attraction to qualify for those funds,
rather than as a cultural center for local residents.
According to meeting minutes from a subsequent Town Council
Budget Workshop held on April 16, McIver discussed the
allocation and “explained the proposed steps for the Community
Performing Arts Center. The next steps would include consultants
meeting with various performing arts groups in the community to
discuss the feasibility of this center. The next step would be
to discuss the special needs for the center. For example: the
lighting, stage needs, and acoustics. The needs will vary based
on the performing arts groups. Then decisions would be made
based on what is practical and feasible. After all the
preliminary steps have been completed, then the schematic
drawings and reasonable cost estimates would be presented to the
public. . . McIver reiterated the Town is taking a leadership
role in determining whether or not the Community Performing Arts
Center is feasible.”
The $986,500 SATAX budget for 2007-2008 represents a 64%
increase over the $600,000 funded for 2006-2007. Of the
$986,500, $500,000 was allocated for two new projects - $250,000
for the Kiawah Island Parkway Project and $250,000 for the
proposed PAC. Both of these projects were fully funded at the
level requested.
Of eight projects funded both in 2006-2007 and again in
2007-2008, three projects gained a total of $11,750 vis-à-vis
2006-2007 funding, three projects lost a total of $88,750
vis-à-vis 2006-2007 funding, and two projects were funded at the
same level as in 2006-2007. Gaining funds were the 4th Annual
Blues by the Sea (+$4,000), Symphony at the Park (+$2,750), and
Resort Nature Programs and Services (+$5,000). Losing funds were
Charleston County Deputies (-$11,750), Spring and Summer
Programming/Sanctuary (-$50,000), and Holiday Events Resorts
(-$27,000). Two projects funded in 2006-2007 were not funded for
2007-2008 (2007 Winter Promotional Events, $50,000 and Holiday
Event Sanctuary (Christmas), $20,000). The FY 2007-2008 SATAX
Applications, recommendations by the SATAX Committee, and
recommendations by the Town Ways and Means Committee can be
viewed under Proposed Performing Arts Center at Freshfields
link at www.kiawah.org. |
