CONWAY, SC (WBTW) – The coronavirus pandemic is lingering over financial decisions Horry County Council is trying to make, including the debate over impact fees.
In 2018, almost 75% of Horry County voters supported putting impact fees on construction of new homes or businesses, but the coronavirus pandemic has made the economic future uncertain as the county studies whether it should add the fees.
“We’re at a crossroads and the direction is we raise taxes or we implement impact fees,” said council member Danny Hardee, who represents the Green Sea community.
About 275,000 more people are forecasted to move to Horry County over the next two decades. That’s according to the county’s new comprehensive plan Imagine 2040.
While the COVID-19 pandemic has paralyzed many aspects of the country, county council is preparing for when most economic activity resumes.
“I think we need to move forward with this and do this for the people, not for the few that are developers or realtors,” said council member Bill Howard, who represents parts of Carolina Forest and Myrtle Beach. “Those are the only ones I’ve heard from are developers and realtors because it’s going to hurt their pocketbooks.”
During a virtual budget retreat Friday morning, county council passed first reading of a plan to charge impact fees. The county is estimated to generate $208,768,182 over 10 years.
Here are the latest proposed impact fees on construction:
- $7,439 per 1,000 square feet of a retail building
- $5,728 per 1,000 square feet of an “institutional” building
- $4,838 per single-family home
- $3,274 per multi-family unit
- $2,857 per 1,000 square feet of an office building
- $2,587 per hotel room
- $1,155 per 1,000 square feet of an industrial building
That revenue would go towards funding infrastructure upgrades like stormwater, public safety and transportation. Baltimore, Maryland, consulting firm TischlerBise finished a 160-page study about implementing the impact fees this month.
Council members say they want more time to review the study and what effect the pandemic will have on the county’s economy.
“What we don’t need to do is jump out here and do something in the middle of all we’re going through without studying,” said council member Gary Loftus, who represents Surfside Beach.
“It looks to me like the study, the recommendations and all that are very valid, very scientifically done,” said council member Johnny Vaught, who represents the Forestbrook community. “I just want to make sure we’re on good standing when we do this.”
Council decided it will hold an impact fee workshop before moving forward with the proposal. That workshop could be later this summer if and when coronavirus physical distancing guidelines allow a public, in-person meeting.
The impact fees likely would not be approved in time to go into effect in 2020.