The Isle of Palms Law Enforcement Neighborhood Support (LENS) Program was unsuccessful in its recent effort to convince the city’s Accommodations Tax Advisory Committee to approve its second application for funding, and one member of the committee even suggested that the LENS Program should return the money it received previously.
Ted Kinghorn, who serves on the LENS Selection Panel, withdrew the application as members of the ATAX Committee were preparing to vote on it at a Nov. 17 meeting. Based on comments from committee members, it appeared obvious that they would not approve recommending another $10,000 grant for the local organization.
The ATAX Committee voted in January 2022 to approve a $2,500 grant for the LENS Program, and the City Council, which has the final say in determining where ATAX money goes, increased the grant to $10,000. ATAX funds are generated by the state’s 2% tax on short-term rentals and, under state law, must be spent to encourage tourism. “I don’t see any direct effect for tourism,” ATAX Committee Member Rebecca Kovalich said. “You have a wonderful organization, but I don’t see where it actually draws more tourists to the Isle of Palms.” Established in early 2022, the LENS Program operates under the Community Service Committee of the Isle of Palms Exchange Club.
Its purpose is “to provide law enforcement with support to strengthen community relations and improve public safety on IOP.” Most members of the ATAX Committee apparently were concerned that providing a safe place for a young pregnant mother to stay, finding a temporary hotel for an employee of an island business, and offering financial support to a family whose young daughter died in an automobile accident were not appropriate uses for ATAX funds.
“I’m of the opinion that the LENS Program should return the $10,000 they already got because it is not being spent properly,” said committee member Doug Truslow. “This does not comply with the law. These funds cannot be spent for scholarships. You can’t confiscate the taxpayers’ money and then use it for somebody who has cancer in the family if they live off the island.”
Committee member Barbara Bergwerf added that “I think it’s the wrong bucket of money.”
Kinghorn pointed out that the LENS Program has spent $5,700 of the $10,000 it received in ATAX money assisting visitors to the island and for the National Night Out Program and that the organization’s scholarship fund is in a separate account. He asked committee members to provide him with guidance on how to best spend ATAX money.
“I don’t think it’s our role to tell you how to fashion your application,” Committee Chair Ray Burns responded. “I would propose that you resubmit an application that would pass the state law.”
“If they didn’t spend it properly last year, that’s not acceptable. The threshold question is accountability. Before they can get money going forward, they have to show that they spent it properly last year,” Truslow added, just before Kinghorn announced that he was withdrawing the application. In other action Nov. 17, the ATAX Committee recommended that the Council approve $30,000 in ATAX money to help pay for a seawall, walkway and handrail at the Exchange Club building at 201 Palm Blvd.
Kitty Riley, chair of the Isle of Palms Community Corporation, reported that the entire project will cost $228,000. She said the Exchange Club brings around 6,000 people a year to IOP and that 20% of them travel to the island from more than 50 miles away, IOPCC is the foundation arm of the Exchange Club.
Two members of the committee didn’t think the expenditure was appropriate for ATAX money. “It doesn’t put heads in beds in a great way,” Bergwerf commented. “Just funding upkeep of your land – I don’t think that falls under ATAX. That’s my concern.”
“That’s not what ATAX money pays for,” Gloria Clarke added. “Bushes and landscaping – you can’t just spend the money on that.”
A motion to recommend approval to the Council passed by a 5-2 vote, with Clarke and Bergwerf voting no and Chrissy Lorenz, Chas Akers, Kovalich, Truslow and Burns supporting the measure.