Monday, July 24, 2017

Busted! Ken Ham's Ark Encounter Loses $18,000,000 in Tax Incentives From State of Kentucky

WUKY and other outlets are reporting that the Kentucky Board of Tourism has suspended $18 million worth of tax incentives for which the Ark Encounter had applied prior to its construction.

A general timeline: The Ark Encounter, LLC is set up as a for-profit company for the purpose of overseeing the construction of the Ark Encounter.  This company applies for the tax incentives to help defray the cost of the construction.  Despite controversy, Ham defends the use of the tax incentives.  Ark Encounter LLC also issues junk bonds  for this purpose.  The Ark Encounter opens on July 7, 2016 to much fanfare.  Ken Ham declares that he expects over two million visitors the first year.  Ticket prices are set at $40 for adults, $28 for children 5-12.

Well, after a year, controversy has continued to swirl around the Ark Encounter.  Instead of 2 million visitors for the first year, the Ark Encounter has drawn only 1.1 million visitors.  Ken Ham blames the lack of hotel space for this problem rather than, say, really high ticket prices.

After a year, the city of Williamstown complains that the Ark Encounter has brought in little to no business for local establishments.  Faced with growing infrastructure costs due to increased traffic because of the Ark Encounter, the Mayor of Williamstown, Rick Skinner, informs Ark Encounter, LLC that it will be imposing a 50-center per ticket tax to help pay for the upkeep of the town.

One day prior to the tax going into effect, Ken Ham sells the land on which the Ark Encounter sits to Crosswater Canyon, a non-profit organization owed by the Creation Museum, for $10.  Arguing that they are now a religious organization, Ark Encounter, LLC refuses to pay this tax.  The city of Williamstown pushes forward, threatening a lawsuit.  This brings us to the most recent update.

The Louisville Courier-Journal is now reporting that Ark Encounter, LLC, has had its tax incentives suspended by the state of Kentucky's Board of Tourism.   Deborah Yetter writes:
Kentucky has suspended tax breaks to the Ark Encounter, saying it breached a deal that provides the religious-themed attraction with $18 million in state tax incentives.

The Northern Kentucky theme park, dubbed the "Ark Park" because it features a 510-foot-long model of Noah's Ark, was notified by state officials on Tuesday that the owners have violated an agreement with Kentucky by transferring the property from a for-profit company to a nonprofit company.
It is difficult for me to believe that the managers of Ark Encounter, LLC, did not know that the optics of this deal would look terrible.  Yetter continues:
Earlier in the week, Mike Zovath, chief action officer with Answers in Genesis and principal of Crosswater Canyon, couldn't say why the property was transferred to a nonprofit.

"However this works out, we want to do things that are in the best interest of the Ark Encounter, Crosswater Canyon and everybody that's involved here and works here," he told The Cincinnati Enquirer.

But Williamstown Mayor Rick Skinner fears the move was taken to avoid paying taxes.

"We're skeptical of their thinking and their lack of communication right now," Skinner said.
Ken Ham and the managers of the Ark Encounter have allowed their focus on profits above all else to deflect blame for the park’s low attendance and behave unethically. All involved in the Ark Encounter, LLC and Crosswater Canyon should be ashamed of themselves for this naked shirking of responsibility and cash grab. I am quite certain that Ken Ham will protest this move by the tourism board.  I hope he does.  It will only reveal more shady dealings that, I am sure, are there. 

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