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A state Senate committee approved a House-passed bill today thatwould permit sales tax increment financing for the Wheeling Victorianoutlet mall and other downtown redevelopment projects.
But Senate leaders said it would look much different by the timethey get through with it next week. They anticipate the result willblend the two plans for funding the outlet mall.
"I think that final bill will probably take care of the needs ofthe funding of the Wheeling Victorian project and very well couldinclude the ability for some other projects throughout the state,"Government Organization Chairman Ed Bowman, D-Hancock, said.
Although he said he didn't want to be more specific, when askedwhether those other projects might include a new ballpark inCharleston and the Pullman Square project in Huntington, he replied,"I would suggest that your suggestion could very well have merit toit."
The Senate's Government Organization Committee approved the Housebill this morning.
The Senate has its own bill to come up with the $80 million neededfor the Wheeling project by using infrastructure funds resulting fromvideo lottery revenue.
It would put $20 million into the project each year for four yearsand during each of those years, $13 million of consumer sales taxrevenue would be put back into the infrastructure fund, so the netloss to the fund would be only $7 million each year or $28 millionover the four years.
The House bill would allow Wheeling to divert the extra sales taxrevenue generated by the outlet mall into paying off bonds sold tofinance the project, but Senate leaders don't like that proposalbecause they're worried that sales tax revenue is already declining.
"I don't think we'll end up embracing the sales tax," said SenateFinance Chairman Oshel Craigo, D-Putnam. "There are too many peoplealready jumping on it and that's the real risk you run with that."
But the House is so committed to the sales tax increment financingmethod that, even though it passed the bill once last month, it wasset to vote on the same legislation again today. This time, thelanguage was attached to a larger bill containing legislationproposed by Gov. Bob Wise to overhaul the state's tax incentivesystem.
"Rather than build safe water supplies the Senate would sell Polosweaters," said Delegate Mitch Carmichael, R-Jackson.
The way he sees it, the Senate's proposal would involve riskingstate money on a "very expensive, risky project." The House proposal,which would let the project fund itself is much more prudent, hesaid.
Carmichael argued that lower-income West Virginians are the oneswho play lottery games, filling up the infrastructure fund inquestion. So taking money from the infrastructure fund and spendingit on an outlet mall amounts to taking from the poor and giving tothe rich, he argued.
The money would be better spent on water and sewer projects acrossthe state instead of an outlet mall in one city, Carmichael argued.
"These projects, not an outlet mall, will promote real economicdevelopment," he said.
Delegate Sam Cann, D-Harrison, disagreed. Spreading the moneyacross the state on a lot of little infrastructure projects - asCarmichael advocated - isn't the right thing to do, Cann said.
"I think it's time to go after something significant," he said.
But that's not the real issue, Cann said. It's the project, notthe method of funding it that's important, he said.
"We have an opportunity to put ourselves on the map and dosomething positive," he said.
Craigo said he expect the final bill to be a combination of theHouse and Senate plans. Bowman indicated it might also include atleast one other, still-unspecified funding method.
"At this time, I don't believe there's a really definitivedecision made among the Legislature as to what method of funding willbe used," he said. "I believe that the two most mentioned sources, aswell as possibly another alternative, could still be open fordiscussion."
Writer Jim Wallace can be reached at 348-4819 or by e-mail atjimw@dailymail.com.
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