Tag: Brenda Bethune

Chamber and Governor Mull Press Conference to Announce I-73 Funding with No Funding Approved

The latest effort by the Myrtle Beach Area Chamber of Commerce to make construction of Interstate 73 a viable project in the minds of the voters of Horry County took several bizarre twists yesterday.
A brief recap:
In recent weeks, the Chamber has promoted the idea that a mysterious poll of voters in South Carolina (405 in all) showed 82% of those responding favored construction of I-73. The actual questions and responses have never been revealed, just questionable results.
The poll announcement was followed by news that Chamber President and CEO Karen Riordan, state Rep. Case Brittain, Myrtle Beach Mayor Brenda Bethune and Horry County Council member Dennis DiSabato were working on a $750 million funding package for the I-73 project that included $250 in funding from local governments and $500 million from the state. It was announced that the governments of Horry County, the City of Myrtle Beach and the City of North Myrtle Beach would approve their respective portions of the $250 million funding package by the end of this month.
Monday it was announced that the Horry County Administration Committee would vote the next day on a resolution to dedicate $4.2 million per year, for up to 30 years, to the I-73 project from county hospitality fee revenue. That vote, however, was postponed until at least October 26 after a short executive session by committee members on Tuesday.
Tuesday evening Horry County Council Chairman Johnny Gardner was informed that Gov. Henry McMaster would hold a press conference Monday October 4, 2021, at the Myrtle Beach Chamber offices to announce the state was committing $300 million to I-73 construction. (There was no explanation of why alleged state funding was reduced from the $500 million announced by Brittain to the $300 million over a two-week span.)
Now the bizarre:
According to a number of sources familiar with events, word began to spread from Riordan to local politicians yesterday that the governor would be coming to Myrtle Beach on Monday to make an announcement about I-73 funding.
Unless the state government receives specifically earmarked funds for I-73 from the federal government, the governor cannot order any state agency to spend money on the project. Appropriations must receive voting approval from the General Assembly.
State legislators, from around the state, contacted by Grand Strand Daily, said the news that Gov. McMaster was going to announce funding from the state for I-73 was a surprise since the General Assembly had not approved nor even considered any such appropriation.

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Another Suspicious Poll from MBACC Alleges Support for I-73

The Myrtle Beach Area Chamber of Commerce is up to its old tricks by again trying to convince local citizens that there is widespread support for the construction of Interstate 73.
Two days ago, the Chamber issued a press release and an eight-page document supposedly reporting the results of a poll conducted in July 2021 on I-73.
The document stated that 79 percent of 405 registered voters responding from across the state supported I-73. It also stated that 82 percent of an unspecified number of voters, included in the overall 405 number, from the 7th Congressional District supported I-73.
These reported results are in line with another supposed poll the Chamber said was conducted two years ago. The results from that poll supposedly said that of 1,774 respondents to a poll on I-73, 74.6 percent of the respondents favored the project.
Two years ago, I called B— S—- on the 2019 supposed poll and I submit the same sentiment applies to these most recent reported results.
The latest supposed poll results come at a time when the newest brainstorm, as reported in local media, to keep some life in the I-73 project is to have the local city and the county governments pledge by resolution a total of $250 million toward construction of I-73.
Myrtle Beach Mayor Brenda Bethune strongly supported local funding from the city, even though the city recently cancelled health insurance coverage promised to retired city workers and police manning is down while young women apparently can be snatched off the street in mid-afternoon only to have their body turn up in Florence several days later.
However, Horry County Council members are very reluctant to pass even a resolution supporting county funding of I-73, despite concerted effort by council member Dennis DiSabato. It took the county a year to reverse the debacle council had to extract itself from two years ago after a 2018 resolution pushed by then county chairman Mark Lazarus committed the county to providing $25 million per year to SCDOT for the I-73 project.
The idea is that state Rep. Case Brittain can take those pledges to Columbia to ask the state government to pledge $500 million toward the project. Then, with $750 million pledged, maybe Tom Rice can finally get enough out of the federal government to construct the road at least to connection to I-95 in Dillon, a total cost of approximately $1.5-2 billion.
How this is supposed to succeed is anyone’s guess as the best Gov. Henry McMaster could do last spring was get SCDOT to commit $500,000 per year for three years to the I-73 project IF the local governments provided a total match of $500,000 per year.
The reasons to question whether a poll was even conducted are many.

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Richardson Listens to Voters on I-73 Issue

As a new push begins for local funding of the Interstate 73 project, Horry County School Board Chairman and 7th Congressional District candidate Ken Richardson has taken a novel approach on the I-73 issue.
Over the past several days, local media has highlighted I-73 propaganda statements by local politicians who, along with the special interests who fund their campaigns, search for $250 million in local government revenue to pledge to the I-73 project.
Interstate 73 has always had a top-down sales approach to voters. Special interests and their PACs, who believe they will gain financially in some way from the construction of I-73, fund the campaign chests of local politicians who then become spokespersons trying to convince voters that I-73 is actually for their (the voters) benefit.
Richardson has taken a different approach. As he travels around Horry County and the other seven counties that make up the 7th Congressional District, Richardson asks voters whether they support the construction of I-73.
“I have given over 50 speeches to groups as small as 6 to as large as 120 since I announced my challenge to Tom Rice for the Republican nomination for the 7th Congressional District,” Richardson said. “During every speech, I ask for a show of hands from those in attendance who support I-73. So far, in all those events, only one hand has been raised.”
Richardson spoke of one woman at an event in Florence. “She said to me, ‘we always hear how interstates will bring new jobs. Well, we already have two interstates in Florence and we haven’t seen 300 new jobs in the last 10 years.’”
Richardson said a common theme he hears is that local governments and the state government should fix the roads and bridges they already have in place rather than building a new road that won’t be maintained either.
The I-73 project has been a subject of discussion by special interests and the politicians they donate to for at least 30 years. It ramped up nearly 20 years ago when Brad Dean took over the reins of the Myrtle Beach Area Chamber of Commerce.
Horry County has already spent over one-half billion dollars of locally generated hospitality fee (tax) revenues building SC-22. The last approximately 22 miles of I-73 will be on SC-22 from near the 319 exit to the terminus in the Briarcliffe Acres area. SC-22 will need some upgrading on the shoulders to meet interstate highway standards.

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Rice, Fry and Crawford’s Interstate 73 on Life Support

Since the City of Myrtle Beach killed a funding source for Interstate 73 with the hospitality fee lawsuit against Horry County, the cabal that stands to benefit from construction of the road has been attempting to keep the project alive.
In the last two years of his tenure as county chairman, Mark Lazarus led council to remove the sunset provision in the county’s hospitality fee ordinance. Then, Lazarus convinced council to approve a financial participation agreement with the S. C. Department of Transportation to provide dedicated funding for the interstate project.
Lazarus’ entire scheme to provide county funding for construction of I-73 blew up with the hospitality fee lawsuit and recent settlement.
Congressman Tom Rice, and state Reps. Heather Crawford and Russell Fry and former Rep. Alan Clemmons didn’t even get as far as Lazarus in securing funding for construction of Interstate 73 despite constantly proclaiming the project a major priority.
The most successful representative in obtaining funds for I-73 was former SC 1st Congressional District Rep. Henry Brown in the days when Horry County was part of that district. During his 10 years in Washington, Brown managed to secure approximately $83 million total for the road. Brown served in Congress from Jan. 2001 to Jan. 2011.
According to sources familiar with the project, SCDOT is currently spending the last of the Brown secured funding to purchase rights of way in the Mullins area.
Rice has demonstrated no ability to secure federal funding to move the I-73 project forward. Neither have Fry, Crawford and previously Clemmons at the state level.
Grand Strand Daily has learned that a recent private meeting was held after Gov. Henry McMaster made an address to the Myrtle Beach Area Chamber of Commerce. The meeting included McMaster, Myrtle Beach Mayor Brenda Bethune, North Myrtle Beach Mayor Marilyn Hatley and Horry County Council member Dennis DiSabato. The meeting reportedly discussed providing some state funding, with local matching funds, to keep the project alive.
It is interesting that McMaster chose to meet with Bethune and Hatley, the two mayors who played the largest part in eliminating I-73 funding from hospitality fee revenue, as well as DiSabato who will struggle to get seven votes among council members for the proposal. One wonders, where was Horry County Council member Johnny Vaught when this meeting occurred. Vaught was attached at the hip to Lazarus with attempting to provide dedicated annual funding for I-73 from hospitality fee revenue.
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Hospitality Fee Lawsuit – What Does Myrtle Beach Really Want

With the City of Myrtle Beach announcing last week it plans to appeal the judge’s order on a settlement of the hospitality fee lawsuit it brought against Horry County, it appears the city has taken the stance of ‘my way or the highway’ on the lawsuit issue.

Everything has been settled and agreed to between the parties in the lawsuit except for the disbursement of approximately $19 million the county collected in the various city jurisdictions in the county between March and August 2019.

Horry County asked the judge to order that money be returned to the city’s in which it was collected. The judge agreed.

Myrtle Beach requested one half of those funds be returned to the cities and one-half established as a fund from which it may pay out refunds to individuals who paid the hospitality fee between the above months with any unclaimed amount going to the South Carolina Bar Association’s fund for legal services for low income residents.

Under the county plan, Myrtle Beach would receive $11,170,800 of the approximately $19 million total. This money could be spent on infrastructure and public safety services associated with tourism, according to state law.

Under the city plan, Myrtle Beach would receive $5,585,400. Why would the city want to receive less money and why would it appeal a judge’s order that awarded it more?

The dispute over the settlement money split is about interpretation of Rule 23 of the South Carolina Rules of Civil Procedure, which deals with class action lawsuits.

Myrtle Beach issued the following statement as an explanation, “This appeal is necessary to finally determine the rights of the other members of the class — those who paid the Hospitality Fee to Horry County during the period when it was in dispute — regarding distribution of the portion of the $19 million common fund that was not otherwise resolved by the settlement agreement.

Myrtle Beach Mayor Brenda Bethune and City Manager John Pedersen have both added the city’s attorneys said the appeal is necessary in order to shield the city from any potential liability related to a suit that may be brought by a potential claimant.

I have spoken to two attorneys not involved in the lawsuit who said the city is already shielded from any claim by the trial judge’s order. In addition, neither believe this is a class action suit.

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Money for I-77, Where is Money for I-73?

President Donald Trump tweeted Thursday June 18th about $34.6 million appropriated from the federal government for a new interchange on I-77 in Rock Hill.

Where is an appropriation for I-73?

Trump’s tweet again highlights the inability of our elected representatives, many of whom were reelected at last week’s primary, to get any funding for their supposed number one agenda item.

Tom Rice, Alan Clemmons, Heather Crawford, Luke Rankin, Russell Fry, Dennis Disabato, Cam Crawford, Gary Loftus, Johnny Vaught, Bill Howard, Tyler Servant, Brenda Bethune – aren’t you all embarrassed and ashamed of your continuing inability to secure any funding for I-73?

Over the past year, each and every one of you has spoken of the importance of I-73 to the local economy and to the safety of our citizens.

All this announcement does is demonstrate your political impotence, both individually and collectively, to deliver funding from any source other than Horry County for the project you list among your top priorities!

Five of the above, Clemmons, both Crawfords, Disabato and Loftus were victors in recent primaries, guaranteeing their reelection in November. Two others, Rice and Fry, had no primary opponent and will have a virtual walkover in November. Four, Vaught, Howard, Servant and Bethune, will face reelection over the next two years. The lone remaining incumbent, Rankin, faces a runoff election next week.

Whether it be money for I-73, flood mitigation, other infrastructure projects or other needs to help the citizens of Horry County, the ‘Dirty Dozen’ incumbents mentioned above can’t deliver.

Even the development industry, which spent tons of money helping the reelection of these people has to be let down at this announcement. After all, I-73 would net immediate revenue for some of those and it would open up considerable land in the western part of the county for development, even though much of it probably shouldn’t be developed due to flooding and infrastructure considerations.

Despite their continuing demonstrated inability to accomplish anything positive for the area, the voters chose to send those up for reelection last week back into office.

This announcement is just another example of why that was a bad idea.

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Myrtle Beach’s Problem with the Truth about I-73 Funding

Myrtle Beach city government just can’t keep itself from spinning stories in an attempt to make itself look good while hiding the truth from the public.

The following post, which appeared on the city government Facebook page yesterday, is a perfect example of the city’s spin:

“The City of Myrtle Beach supports I-73…

“The Myrtle Beach City Council is on the record as supporting I-73. Twice in the past year, City Council has approved resolutions expressing its support for I-73. In April 2019, Council publicly stated that it would devote financial resources to I-73 once the Hospitality Fee issue was resolved. Myrtle Beach has demonstrated its commitment to I-73. Question: Has the Horry County Council voted publicly to support I-73?”

The day Myrtle Beach filed suit against Horry County to stop countywide collection of the 1.5% Hospitality Fee, the local revenue stream for funding I-73 dried up.

The above post says in April 2019 Myrtle Beach city council approved a resolution expressing support for I-73. The resolution was passed after city council refused a settlement offer for the Hospitality Fee lawsuit from county council that provided funding for I-73.

The county’s settlement offer would have designated one-third of the revenue from countywide collection of the 1.5% Hospitality Fee to fund I-73 with the remaining two-thirds of the revenue collected within the city limits being transferred back to the city for use as city council determined.

The following is an extract from a letter Myrtle Beach Mayor Brenda Bethune wrote to county Chairman Johnny Gardner rejecting the settlement offer:

“Thank you for your letter of April 3. As you are aware, the Myrtle Beach City Council has expressed its willingness to commit support for the I-73 project. However, since the proposed funding source is the subject of litigation, we are unable to engage in negotiations under the terms described in your letter and related attachments.

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I-73 Funding Remains Roadblock to Hospitality Fee Lawsuit Settlement

The question of funding Interstate 73 is the obstacle preventing settlement of the hospitality fee lawsuit brought by Myrtle Beach against Horry County earlier this year.

A proposed settlement agreement that was voted on Monday by the councils of North Myrtle Beach, Myrtle Beach, Surfside Beach, Aynor and Atlantic Beach as well as Horry County Council included a provision that one-third of the proceeds from a continuation of the 1.5% countywide hospitality fee collected by Horry County would be dedicated to funding I-73.

The five municipalities voting approved the agreement. Horry County amended the agreement, which necessitates a reconsideration by the five municipalities. Conway and Loris did not vote.  

City of Conway officials said in various media reports over the last day that they have no intention of voting on the amended settlement agreement to the hospitality fee lawsuit proposed by Horry County Council Monday night.

Properly looking out for the interests of its citizens, Conway City Council wants to reserve the right to use any hospitality fee revenue collected within its city limits to meet local needs in accordance with allowable uses of hospitality funds.

The refusal by Conway to vote on the agreement effectively kills the amended settlement agreement since one condition of the amendment was that the cities in the county, less Briarcliff Acres, must unanimously approve the amended agreement.

Myrtle Beach Mayor Brenda Bethune tried to take the high road when the county amended the agreement, but she can’t. It was Bethune who summarily dismissed the county’s offer to settle the dispute in early April, long before attorneys began racking up large bills to continue the lawsuit.

The exact same conditions the county proposed in April became the conditions for settlement voted on Monday night, including the I-73 funding.

Attorneys representing Myrtle Beach negotiated with attorneys representing Horry County with the other municipalities essentially left out of the negotiations. The settlement agreement was presented to those municipalities, essentially as a fait accompli. Conway and Loris chose not to accept and Horry County Council members chose to amend it.

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Questions Surround Proposed Hospitality Fee Settlement Agreement

As Horry County and the municipal councils prepare to vote on a proposed settlement agreement for the Hospitality Fee lawsuit Monday night, many questions remain about what really has taken place behind closed doors since the lawsuit was filed last March.

According to sources familiar with the settlement agreement, the basic proposal approved in a resolution by Horry County Council at its April 2, 2019 regular meeting and publicly rejected by Myrtle Beach Mayor Brenda Bethune within a few days thereafter is the agreement that will be voted on Monday night?

The basic terms of that proposal as it was offered in April and will be considered Monday night are as follows: a) Horry County will continue to collect a 1.5% Hospitality Fee countywide; b) one-third of that fee (0.5%) will go toward funding I-73; c) the remaining two-thirds (1%) will be remitted to the respective taxing jurisdictions (unincorporated county or city) in which it was collected; d) Revenues from the 1.5% countywide hospitality fee collected between the date bonds for Ride I projects were paid off (sometime in February 2019) and June 30, 2019 will be remitted in a lump sum to the respective taxing jurisdiction in which those revenues were collected.

Horry County Council Chairman Johnny Gardner sent a letter to each of the city mayors proposing that settlement on April 3, 2019.

The county was prohibited from collecting the 1.5% countywide hospitality fee within the city jurisdictions after June 30, 2019 by judge’s order. The sum collected within city jurisdictions between February 2019 and June 30, 2019 (currently held in escrow) and subject to lump sum payments back to the cities is approximately $19 million.

Why is a proposed settlement that was publicly and totally rejected by Bethune in April 2019 suddenly the terms for settlement? (See Gardner’s letter to the mayors and Bethune’s rejection letter at the links below)

The mayor’s main points of contention have not changed in the agreement to be voted on for approval Monday night: a) continued collection of the countywide hospitality fee is illegal; b) the city cannot delegate to the county the authority to control the disposition of revenues which are properly within the city’s authority to collect and manage and c) no benefit to city residents from that arrangement.

What has changed?

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Proposed Hospitality Fee Lawsuit Settlement Taking Money from Taxpayers

The proposed agreement that county and city councils will be voting on to settle the hospitality fee lawsuit between the county and the cities will see money that should go to the benefit of the taxpayers instead going to pay attorney fees.

This is the first lawsuit settlement negotiation that I can remember where the injured parties, the taxpayers, were not even represented in the room.

In the case of the cities through three negotiation sessions, no elected officials from any of the cities, those elected to represent the citizens, could be bothered to be present. Several elected county council members attended each session.

The absence of city elected officials, especially mayors Brenda Bethune of Myrtle Beach, Marilyn Hatley of North Myrtle Beach and Bob Childs of Surfside Beach, the three cities at the forefront of the lawsuit, resulted in attorneys representing the cities to structure the settlement with no input of those elected to represent the citizens.

According to information received by Grand Strand Daily, the settlement will structure the lawsuit as a class action which will allow the attorneys representing the cities to split 33% of the settlement amount for themselves.

The reported settlement amount is the approximately $19.5 million revenue from the countywide 1.5% countywide hospitality fee collected within the respective city limits of the cities in the county from the time the bonds for the RIDE I program were paid off in February 2019 until June 30, 2019. That means the attorneys will split a cool $6.5 million from the settlement. In addition, those attorneys have already billed the cities a total over $750,000 in legal fees before the settlement is finalized.

County council member Harold Worley stated from the council dais that he would not vote to approve any settlement that gave $7 million taxpayer dollars to attorneys. Worley was speaking as the representative of county council District 1, which includes all of North Myrtle Beach. He believes that money should be spent for infrastructure improvements, public safety and like needs allowed by the hospitality fee law.

The $7 million will come out of the settlement amount for the cities. The county is only on the hook for approximately $350,000 billed by its attorneys.

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