Richland fails to fund previously approved $20 million water park contract

Richland County Council on Tuesday failed to approve a funding plan for a $20 million water park contract it OK’d a week ago.

The long-discussed water park planned for northeast Richland County near Interstate 77 was expected to be paid for by $5 million in hospitality tax funds already set aside plus up to $20 million in bonds to be paid back over 20 years.

Revenues from the water park would be expected to pay back the debt from the bonds each year, said Daniel Driggers, the county’s chief financial officer. But according to the funding plan proposed to council, $1 million in hospitality tax funds would be set aside as debt service collateral each year in case the park does not pay for itself.

“The county would not pay anything as long as the water park remains profitable,” Driggers said.

Council members voted 7-4 against the plan to earmark $1 million in hospitality tax funds as water park debt service collateral each year.

Council then could have voted to issue the water park bonds, up to $20 million, and identify the funding source later. But council members also voted 7-4 not to issue the bonds without the backup funding plan.

County staff will seek direction from council after the New Year as to whether they will identify another funding plan for the water park or choose not to move forward, Driggers said.

The water park, envisioned by county leaders as a regional tourist attraction and among the largest water parks in the state, has been projected to open Memorial Day 2017.

The county’s 2 percent hospitality tax on prepared meals, which is dedicated to funding tourism projects, generates about $6.5 million in revenue annually.

This story was originally published December 16, 2015 at 6:04 PM with the headline "Richland fails to fund previously approved $20 million water park contract."