MYRTLE BEACH, SC (WBTW)- City council approves changes to the project list for the redevelopment and financing plan for the former Myrtle Beach Airforce base which is now the Market Common.
The Market Common is a tax increment financing district or TIF, which means money comes from property taxes in that area.
Horry county and Horry County Schools did not want the amendment passed. They think the city should start winding down TIF. They believe the city has met it’s goal of redeveloping the former air force base and should pay off debts and rejoin the tax base.
Money from TIF pays for all public infrastructure like roads, sidewalks, and parks. The county said it’s unfair to ask county tax payers to bear the cost for ongoing maintenance that should come from the city’s general fund.
What’s left on the project list is mainly maintenance with some big ticket items like a new police and fire station and an extra deck on a parking garage. The original list had 20 million dollars allotted for a new school but now that’s off the table. The city said there’s not enough school aged children living in the Market Common
“It’s never been on their capitol improvements project list and the school district has never said they need a school in the Market Common so it’s something that is simply not needed,” said Mark Kruea, spokesperson for the City of Myrtle Beach.
The county argues that the city council agreed in 2006 the school project would be a priority going forward. The school district said the Market Common would be a prime location for a program school.
“We don’t look at jurisdiction lines so we will be pulling from other areas as well when we look at attendance zones so there may not only necessarily be only city limit children attending certain schools,” said Lisa Bourcier with Horry County Schools.
Starting in October, surplus funds generated from TIF could go back to the city, county, and Horry County schools. The county will get about 900,000 dollars a year and Horry County Schools will get 2.3 million a year that they can use how every they’d like.
In a statement, Horry County and Horry County Schools said if the plan moves forward they may take action to protect the tax payers.
Read Horry County and Horry County Schools joint full statement below:
We congratulate the City on the success of the redevelopment of the former Myrtle Beach Air Force Base into Market Common. Without a doubt, Market Common is one of the most desirable and livable communities in Myrtle Beach and Horry County. We appreciate the City’s leadership in making Market Common what it is today.
Regardless, on behalf of Horry County and the Horry County School District, we respectfully request that City Council not approve the amendments to the Redevelopment Plan without significant revision that has meaningful input from the County and School District. We believe that Market Common has met the objective of the State’s military base redevelopment act by successfully reintegrating the former Myrtle Beach Air Force Base back into the urban fabric of Myrtle Beach.
Our respective governments believe it is time to begin winding down the tax increment finance (TIF) district by repaying outstanding debt and having Market Common rejoin the tax base of all taxing jurisdictions. We recognize that this is the decision of City Council. However, we want to note several specific concerns on the proposed amendment that may require the County and the School District to take action on behalf of our taxpayers should the City proceed with the amendment as is.
First, the plan amendment proposes spending approximately $950,000 per year, or $17,180,000 over the remaining life of the TIF for “recovering, reconstruction, repair, and remodeling costs” of roads and parking lots, dredging of lakes and canals, and park repairs. This was never envisioned in the original Redevelopment Plan. It is unfair to ask County and School District taxpayers to bear the cost for ongoing maintenance expenses that should be borne by the City’s General Fund.
Second, we are also concerned that the City is “planning-as-it-goes” on the project list, adding new projects such as parking decks and park expansions as TIF revenues are realized. While these projects may have merit, it appears that the City is using the operating revenue of the County and the School District to support the addition of amenities that benefit a few within the corporate limits of Myrtle Beach.
Third, the $20 million school project was included in the original Redevelopment and Financing Plan and has remained in the Plan for almost 20 years, continuing as a priority project through other amendments. In 2005, when a prior amendment to the Plan was being considered, City Council agreed that the school project would be given priority among the projects in the Plan going forward. This agreement was set forth in a letter to the School District from City Manager Thomas Leath, dated May 31, 2006. Current Council Members Render and Chestnut were members of City Council at the time of such agreement.
Fourth, the plan as proposed continues to negatively impact the Horry County School District in particular. While we understand that incremental revenues generated on new construction within the TIF are used to repay the development costs, the passage of Act 388 provided an additional economic impact to school districts that are included in a TIF District. In addition, Act 57 of 2007 included provisions that every TIF District would be held harmless from the impact of Act 388’s elimination of
school district operations millage for owner-occupied residences. Last year, approximately $2 million was subsidized by the School District to provide the “hold-harmless” funds to the City for the TIF. We could have hired 25 additional teachers with that money. If the TIF district extends through FY 2036, approximately an additional $36.9 million of taxpayer dollars will be diverted from the education of our county’s children.
The intent of tax increment financing is to temporarily defer revenue from all taxing entities in areas where there is blight or underdevelopment to fund projects that will spur development, resulting in more revenue for all taxing districts in the long term. The former Myrtle Beach Air Force Base met that standard, and the TIF worked to create today’s Market Common. However, Market Common is a successful neighborhood, thriving, and well-integrated into the urban fabric of Myrtle Beach. To that end, we believe it is time to begin winding down the TIF rather than continuing to use Horry County and School District millage on new projects and ongoing maintenance.
If the City of Myrtle Beach elects to pursue this Redevelopment Plan as amended, it will cast doubt on any future tax increment proposals the City may propose to our governments in the future. Moreover, if the plan proceeds as proposed, our respective governments may need to take action to protect our taxpayers.
