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gvillenative

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I'm puzzled as to why Leatherman opposes this. He is from Florence and has (or at least had) business interests in Charleston. He may be exchanging his support for other 'i.o.u's" on other items. Apparently SW is interested in both GSP and Charleston.

whistling.gifthumbsup.gif

Significantly, one of the most influential senators who had objected to the bill, Sen. Hugh Leatherman, chairman of the Senate Finance Committee, no longer is objecting to the legislation.

Read more: http://www.thesunnews.com/2010/04/30/1450796/north-myrtle-beach-senator-among.html#ixzz0meR56alA

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A compromise is being worked out with Columbia area lawmakers and the incentives bill looks like it will most likely pass the senate now. Southwest Airlines will probably start service to GSP Airport in March 2011 according to this article: http://www.charlesto...e-airline?rss=0

Edited by citylife
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Charleston County Council voted 8-1 to raise taxes on rental cars for their local match to the state money. I assume our local match is secured or about to be?

http://www.gsabusine...ews/34040/print

Greenville County likely won’t enact a new tax or fee to create an incentive fund for a discount airline at the Greenville-Spartanburg International Airport, said Greenville County Council Chairman Butch Kirven. General revenues would be used instead.

thumbsup.gif I like Greenville County's idea more. Not only do you get the local 25% match required but you don't have to raise taxes to do it either. $1 million of the funds for the local match is coming from the TRAC plan that was implemented a few years ago.

Edited by citylife
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http://www.gsabusine...ews/34040/print

Greenville County likely won’t enact a new tax or fee to create an incentive fund for a discount airline at the Greenville-Spartanburg International Airport, said Greenville County Council Chairman Butch Kirven. General revenues would be used instead.

thumbsup.gif I like Greenville County's idea more. Not only do you get the local 25% match required but you don't have to raise taxes to do it either. $1 million of the funds for the local match is coming from the TRAC plan that was implemented a few years ago.

Not that it makes any difference to me, b/c I don't have a dog in this fight. But a fee increase on rental cars makes more senses, IMO. General funds come from taxes that county residents pay, whereas the majority of revenue generated by a rental car fee would be paid by visitors who don't live there. You wouldn't be raising taxes on yourselves, but rather out-of-town folks. General fund revenues are one-time funds versus the rental fee that would be continually replenished. If Greenville County is or becomes financially strapped in the future (what municipality isn't these days!), the county would have to cut services or raise taxes on county residents to make up for the loss of those general funds.

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These funds aren't actually being used up front are they? They're only a back-up plan in case Southwest has financial troubles at GSP, right? So, if we're confident in our success with Southwest, the County may never actually spend these funds. Do I have this wrong?

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These funds aren't actually being used up front are they? They're only a back-up plan in case Southwest has financial troubles at GSP, right? So, if we're confident in our success with Southwest, the County may never actually spend these funds. Do I have this wrong?

Correct. The incentive funds would ONLY be used if Southwest takes a loss at GSP which seems highly unlikely.

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Not that it makes any difference to me, b/c I don't have a dog in this fight. But a fee increase on rental cars makes more senses, IMO. General funds come from taxes that county residents pay, whereas the majority of revenue generated by a rental car fee would be paid by visitors who don't live there. You wouldn't be raising taxes on yourselves, but rather out-of-town folks. General fund revenues are one-time funds versus the rental fee that would be continually replenished. If Greenville County is or becomes financially strapped in the future (what municipality isn't these days!), the county would have to cut services or raise taxes on county residents to make up for the loss of those general funds.

According to a recent article in the Charleston Business Journal, 80% of car rentals done in the Charleston area at least by Enterprise are by residents already living there due to their vehicles being repaired: http://www.charlestonbusiness.com/news/34100-charleston-county-council-backs-rental-car-tax

Echoing a statistic that most rental car representatives quoted, Kristen Olson, group rental manager for Enterprise Holdings, said that, among the company’s dozen or so locations in the Charleston area, 80% of rentals are to people whose cars are being repaired.

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According to a recent article in the Charleston Business Journal, 80% of car rentals done in the Charleston area at least by Enterprise are by residents already living there due to their vehicles being repaired: http://www.charlestonbusiness.com/news/34100-charleston-county-council-backs-rental-car-tax

Whoa. This doesn't say much for Charleston's business travel, does it?

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It makes sense that 80% of Enterprise's business is local, given that almost all insurance companies have rental agreements with Enterprise. Just drive around Greenville and see how many Enterprise, Hertz Local Edition, and Avis branch offices you see. It's probably the same in Charleston.

While I find the comment that Spartanburg is 5-10 years behind Greenville funny, in a way it pisses me off. Greenville has the foresight to make progress, and while I think Spartanburg is definitely more conservative that Greenville, that shouldn't be stopping them from contributing to bring Southwest or any other LCC to GSP.

I can see it now... a new upstate-wide mass transit system with buses and commuter rail, all paid for by Greenville...

OK, /end rant. I'm going back to bed.

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It makes sense that 80% of Enterprise's business is local, given that almost all insurance companies have rental agreements with Enterprise. Just drive around Greenville and see how many Enterprise, Hertz Local Edition, and Avis branch offices you see. It's probably the same in Charleston.

While I find the comment that Spartanburg is 5-10 years behind Greenville funny, in a way it pisses me off. Greenville has the foresight to make progress, and while I think Spartanburg is definitely more conservative that Greenville, that shouldn't be stopping them from contributing to bring Southwest or any other LCC to GSP.

I can see it now... a new upstate-wide mass transit system with buses and commuter rail, all paid for by Greenville...

OK, /end rant. I'm going back to bed.

That is a good point about Spartanburg. Will this incentive to Southwest be totally funded by the state of SC and Greenville? What contribution is Spartanburg making? Maybe I've missed it, but I haven't seen anything on Spartanburg's contribution. :dontknow:

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As someone who lives in Spartanburg, I have also wondered what we're doing to make this happen. I can't find any info about Spartanburg contributing any money (we are kind of cash-strapped, at least compared to Greenville). Several area leaders at least support the state legislation, however State Senator Lee Bright seems to be against incentives in general (perhaps he doesn't realize we wouldn't have to pay unless Southwest loses money?) and argues that Allegiant didn't need any, so why does Southwest? (different situation, I think).

Spartanburg Herald-Journal article

Getting Southwest to come to GSP could be a huge boost for Spartanburg, if we could get some more businesses to locate here as a result of having a new low-cost carrier. I agree that getting anything progressive done in Spartanburg is like pulling teeth. I am envious of Greenville's strong, forward-thinking leadership.

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As someone who lives in Spartanburg, I have also wondered what we're doing to make this happen. I can't find any info about Spartanburg contributing any money (we are kind of cash-strapped, at least compared to Greenville). Several area leaders at least support the state legislation, however State Senator Lee Bright seems to be against incentives in general (perhaps he doesn't realize we wouldn't have to pay unless Southwest loses money?) and argues that Allegiant didn't need any, so why does Southwest? (different situation, I think).

Spartanburg Herald-Journal article

Getting Southwest to come to GSP could be a huge boost for Spartanburg, if we could get some more businesses to locate here as a result of having a new low-cost carrier. I agree that getting anything progressive done in Spartanburg is like pulling teeth. I am envious of Greenville's strong, forward-thinking leadership.

Honestly, leaders from Anderson, Pickens and Laurens county should be on board in some financial way...however small. GSP is their airport too, and impacts their economy as much as it impacts both Greenville and Spartanburg counties.

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