Tag: Horry County

Uneasy Lie the Heads that Wear Incumbency – First Week of Candidate Filing

The coronavirus has not stopped this year’s candidate filing in Horry County from being the most active filing period in the county for many years.

Grand Strand Daily is tracking 22 local races for county offices or local representatives or senators to the General Assembly.

After the first week of filing, which ended yesterday, there are currently 13 contested races of the 22 being tracked and at least two more county council candidates will probably have opposition before filing closes next Monday. If the expected two challengers file in council districts 3 and 4, all five county council seats up for election in this cycle will be contested and all will be Republican primary contests.

One incumbent council member, Paul Prince in District 9, is retiring and four candidates, including Prince’s son, are contesting the Republican primary for that seat. The other four incumbent council members up for reelection are Cam Crawford and Danny Hardee, who already have opponents filed to challenge them and Dennis DiSabato and Gary Loftus, who are expected to have opponents by the end of filing.

The main reason county council is drawing so much attention is a feeling among voters that incumbent council members are only listening to the development community that funds their campaigns and voters’ concerns about flooding and rapid development are being ignored. (See the image at the end of this post, which has been making its way around Facebook, with the heads of the four incumbents inserted).

On the state level, voters are tired of being donors to the rest of the state while road and flooding problems in particular are not being addressed and most incumbents are content with sound bites and photo ops rather than trying to address solutions.

Four incumbents who, I believe, will face particularly serious challenges are state Reps. Alan Clemmons and Heather Ammons Crawford, Sen. Luke Rankin and county council member Cam Crawford. They are being opposed by Case Brittain, Mark Epps, John Gallman and Jeremy Halpin, respectively.

If the expected challengers emerge against DiSabato and Loftus, those races will be hotly contested also.

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Candidate Filing One Week Away, Silly Season Has Already Begun

Filing for elective office in the county is one week away which will begin what can only be called the “silly season” when facts are few and far between.

However, in one race, the one for a new county Auditor, “silly season” began last August when local CPA Clark Parker announced his candidacy for the position of Auditor and his various pronouncements and posts since.

When Parker announced his campaign last August, he said he could “contribute a lot to the needs of the county” and that “it is important that we collect all our taxes that are due to the county.”

Shortly after his announcement, local media reported Parker was delinquent in paying personal property taxes for tax years 2012, 2017 and 2018. Those delinquent taxes were paid by Parker after the information became public.

Parker was reportedly taking campaign advice from a group of advisors. One or more of those convinced Parker to begin placing campaign yard signs. County ordinance forbids such campaign signs from being placed until 45 days before election voting. Election voting for the Republican primary is June 9, 2020. Signs cannot be placed until near the end of next month, but Parkers were out last fall.

A Facebook post encouraged supporters to take a picture with one of the signs. The best picture was supposed to be rewarded with free dinner for two at Rioz Brazilian steakhouse.

One of Parker’s campaign operatives, Johnny Fryar, was a guest on Talking Politics, hosted by John Bonsignor and myself. I notified Fryar of the illegal timing of the signs. He tried to argue the point with no knowledge of the ordinance. Sometime after the show, the campaign signs were removed.

Since that time, other Facebook posts on Parker’s campaign page have called him the “technology candidate” even though he does not understand what technology the county has and does not understand that county technology is not controlled by the Auditor.

He has also called himself the “2nd Amendment candidate” although I haven’t the slightest clue what the right to bear arms has to do with an office that prepares tax bills for the county. Nor does Parker.

This is a campaign with no message other than throwing a bunch of stuff against the wall and hoping something sticks with voters.

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Gardner Names Special Flood Committee

Horry County Council Chairman Johnny Gardner named a special committee during the county Infrastructure and Regulation Committee meeting Tuesday to study possible options for mitigating the flooding problems from which the county has consistently suffered since 2015.

Gardner appointed Harold Worley as chairman of the special committee with Al Allen, William Bailey, Kevin Hardee, April O’Leary, Alex Hyman, Nick Godwin, Forrest Beverly, Steve Gosnell and Gardner himself as committee members.

The committee brings together points of view from local and state elected officials, citizen and construction industry perspectives with county administrator Gosnell to provide technical expertise as a licensed professional engineer. The county’s Infrastructure and Regulation Division will provide staff support to the special committee.

 Gardner said he believed flooding was such a problem in the county that he decided to appoint a special committee to specifically focus on flooding issues and possible ways to mitigate the problem.

The special committee will report back recommendations for mitigation to the county I&R Committee who will discuss and vote whether to forward those recommendations to full county council for approval and action.

In other flooding related issues discussed at the I&R meeting, the county Storm Water Management Department told committee members that there are approximately 250 outstanding work orders dating to as far back as 2015. The committee was also presented with a list of budget enhancements for personnel and equipment totaling approximately $4.4 million that the department needed to clear the backlog and allow the department to meet current requirements.

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What Is Really Possible to Mitigate Storm Water Flooding

Flooding has again taken center stage in the news in Horry County this week while government officials continue to search for solutions.

Horry County faces potential problems from two different types of flooding. Flash flooding from extremely heavy rainfalls over a short period of time and riverine flooding when a large amount of water makes its way through the watershed from North Carolina to below Georgetown before it exits to the ocean.

While the county storm water plan addresses ways to attempt to mitigate flash flooding, attempts to mitigate riverine flooding have been largely ignored.

Even the task force put together by Governor Henry McMaster after Hurricane Florence suggested little more than to recommend cleaning out ditches, planting some trees and searching for ways to buyout homes which have been damaged or destroyed by recent flooding events.

Since this is an election year, the flooding problem is now present in the political dialogue where it should have been continuous at least since Hurricane Florence in 2018.

Horry County District 6 council member Cam Crawford opened his reelection campaign by proposing a resolution for county council to consider that would urge the state legislature to pass a bill his wife, Rep. Heather Ammons Crawford, is pushing in Columbia that would allow the county to borrow money from the state to provide local matching funds for buyouts of some flood affected homes.

Jeremy Halpin, Crawford’s primary opponent, said more is needed than just a bill for the county to borrow money. He proposed County Council Chairman Johnny Gardner appoint a Flooding Task Force subcommittee to propose, study and recommend a number of options to help the county mitigate flooding of both types.

Crawford responded by calling Halpin’s suggestion ‘political grandstanding’ and said he (Crawford) has been involved with the Governor’s Task Force working “since Hurricane Florence on research and meaningful solutions to flooding in our area.”

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State Legislation Would Not Solve Lawsuit or I-73 Funding

A bill being sponsored by four local state representatives is erroneously being promoted as legislation that would settle a lawsuit between Myrtle Beach and Horry County and provide funding for Interstate 73.

Nowhere in the original complaint or subsequent motions of that lawsuit, filed March 2019, is Interstate 73 mentioned.

The legislation, H4745, sponsored by Reps. Alan Clemmons, Russell Fry, Heather Ammons Crawford and Tim McGinnis would provide the extension of what is called a countywide ‘legacy hospitality fee’ as long the revenue derived from the countywide portion is used specifically to fund an interstate highway project.

When Myrtle Beach filed the original complaint last March, it specifically sought end collection of a 1.5% countywide hospitality fee within its corporate limits. Immediately after filing the lawsuit, Myrtle Beach city council passed new accommodations and hospitality fee taxes, allowed by current state law, to capture revenue from those levies for use on projects of council’s discretion within the city limits.

North Myrtle Beach and Surfside Beach quickly followed Myrtle Beach’s lead in passing new accommodations and hospitality taxes within their respective jurisdictions.

The day Myrtle Beach filed its lawsuit seeking to stop collection of the countywide hospitality fee, countywide funding for I-73 was dead.

A section of the original complaint filed by Myrtle Beach claims the 1.5% countywide hospitality fee, established by a 1996 county ordinance, was illegally extended by county council when a sunset provision was removed from the ordinance in April 2017.

County council voted to remove the sunset provision at the urging of then county chairman Mark Lazarus. It was Lazarus who introduced I-73 into the discussion by mentioning the I-73 project as one of the possible future uses of hospitality fee revenue.

A current proposed settlement for the lawsuit ends any authority of the county to continue countywide collection of the 1.5% hospitality fee and allows all the cities within the county to collect and use the revenue from their newly passed hospitality and accommodations taxes as their respective councils determine within their respective jurisdictions.

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Myrtle Beach Lawsuit Sealed Fate of Local I-73 Funding

The day the City of Myrtle Beach filed suit against Horry County to end collection of the countywide hospitality fee, local funding for Interstate 73 was doomed.

This may not have been the intention of the lawsuit, but it was the inevitable result.

When Gov. Henry McMaster met with local leaders a couple of months ago encouraging them to find a way to maintain I-73 funding, Myrtle Beach Mayor Brenda Bethune told the governor the lawsuit was not about I-73.

She was right. The lawsuit was about stopping the county’s ability to keep collecting the countywide hospitality fee and keeping all revenue collected in the city for the city’s use.

What Bethune did not understand was stopping the countywide hospitality fee collection stopped the funding stream for I-73 as an unintended consequence. Myrtle Beach must take sole blame for this consequence.

A county resolution to settle the lawsuit last April provided one-third of the countywide hospitality fee revenue would go toward funding I-73. Bethune and the city rejected the offer immediately.

Horry County Council approved removing a sunset provision from its hospitality fee ordinance in May 2017. The intent at that time, as clearly stated by then council chairman Mark Lazarus, was to use the countywide hospitality fee revenue to fund I-73 construction in Horry County.

However, it wasn’t until February 2019 that RIDE I bonds were paid off (the original purpose of the hospitality fee). Myrtle Beach filed suit just a few weeks after claiming the fee collection by the county has been illegal since January 1, 2017.

The original county ordinance put a period of 20 years on collection of the fee, which ended on the above date. The ordinance was later amended to continue collections until RIDE I bonds were completely paid off.

It is clear from the initial complaint filed by Myrtle Beach that the city wants to keep all hospitality fee revenues collected within the city limits for uses determined by city council. One must wonder why the city waited until March 2019 to file suit against the county if the fee has indeed been illegal since January 2017 as the city claims.

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Horry County Legislative Delegation Hospitality Bill Will Not Serve County Citizens Interests

A bill to amend South Carolina law on hospitality tax, pre-filed November 20, 2019 by four members of the Horry County legislative delegation, will not serve the general interests of Horry County citizens if it ever becomes law.

The bill, H 4745, sponsored by Reps. Alan Clemmons, Heather Ammons Crawford, Russel Fry and Tim McGinnis, is specifically designed to collect approximately $43 million per year in hospitality fee revenue specifically for the Interstate 73 project.

The bill was pre-filed one day after Horry County Council voted unanimously to cancel its Financial Participation Agreement with the South Carolina Department of Transportation. The agreement would have funded I-73 at up to $25 million annually.4745 is an expansion on a bill, H. 4597, filed just before the legislative session for 2019 ended last May. H. 4597 was filed after the cities filed a lawsuit against the county to stop collection of the 1.5% countywide hospitality fee within the limits of the respective municipalities in the county.

H 4745 is an expansion on a bill, H. 4597, filed just before the legislative session for 2019 ended last May. H. 4597 was filed after the cities filed a lawsuit against the county to stop collection of the 1.5% countywide hospitality fee within the limits of the respective municipalities in the county.

Both bills are designed to allow Horry County to resume collecting the 1.5% ‘legacy’ hospitality fee. Horry County is the only county in the state that has continuously collected the 1.5% countywide ‘legacy’ hospitality fee until stopped by the lawsuit.

The need for the second bill appears to be that H. 4597 allows the 1.5% hospitality fee revenue to be used on all the tourism related purposes as defined in S.C. Code of Laws Section 6-1-730. Those purposes include police, fire, emergency medical services, roads, highways, streets and bridges and recreation facilities which are tourism related.

The second bill limits uses of the hospitality fee revenue to interstate infrastructure, interstate interchanges and roads that directly connect to an interstate until no viable interstate highway projects remaining in the county.

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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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County Council Kicks I-73 Decision Down the Road

Horry County Council again dodged making a definitive decision on the I-73 contract with SCDOT at its special meeting Wednesday.

Instead of voting to cancel or go forward with the contract, council voted to defer a final decision until the end of the year.

In the meantime, council has asked the cities to step up with funding for the project or the county would be forced to cancel the contract by December 31, 2019.

In simple terms, the county does not have the ability to fund the up to $25 million per year currently promised in the contract. SCDOT has asked for $12.5 million in the first year, but plans to bond against $25 million per year in future years.

The City of Myrtle Beach continues to cloud the truth by saying the county can fund the contract with its hospitality fee revenues from the unincorporated areas. This is not true.

With the county now banned from collecting a 1.5% hospitality fee, the municipalities and the cities collecting their own hospitality and accommodations taxes, the county has no more than approximately $10 million it can designate for I-73.

In order to reach the $25 million per year called for in the SCDOT contract, Myrtle Beach would have to pledge approximately the same as the county, $10 million per year, and North Myrtle Beach, Surfside Beach, Conway, Loris, Aynor, Atlantic Beach and Briarcliff would have to combine to make up the remaining $5 million.

I don’t believe any of that is going to happen. Not only would the cities have to pledge the funds each year, there would need to be an intergovernmental between the county and the municipalities formalizing those commitments and each party would need to sign the contract with SCDOT.

Those are the details of what needs to happen to keep the SCDOT contract alive. However, there are other details that make keeping the contract more disturbing.

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Hospitality Fee Mediation Impasse Demands New Direction by Local Governments

After two extended mediation sessions between representatives from Myrtle Beach and Horry County, it is obvious the two sides are at an impasse for any agreement with regard to the ongoing hospitality fee lawsuit.

This may have been the result the city was looking for from the beginning. According to sources familiar with the proceedings, not one elected council member from Myrtle Beach participated in either of the mediation sessions.

Horry County had several elected council members participate in the sessions. It is extremely difficult to come to any solution if those who will ultimately pass the legislation that would be needed to approve and institute the agreement do not participate in the process.

With a view to court decisions to date, Horry County cannot now nor hope in the future to collect a 1.5% countywide hospitality fee as it has since 1997 until challenged in court by Myrtle Beach.

The simple way out of this mess is for both sides to step away from the legal process. Myrtle Beach and the other cities can collect the revenue from the new hospitality and accommodations taxes they passed earlier this year and spend that money as they choose.

Likewise, Horry County could continue to collect either the 1.5% hospitality fee it now receives from the unincorporated areas or choose to pass new ordinances under current state law for hospitality and accommodations taxes. The county could then spend those proceeds on the projects they need locally.

There is one possible perceived obstruction from the walking away process. Included in the initial lawsuit filed by Myrtle Beach is a claim that the countywide collection of the hospitality fee has been illegal since January 1, 2017 and that the county should refund the approximately $60 million collections from that date amount to.

Several considerations seem to make this claim spurious.

Those refunds cannot go to the cities. If taxes are collected illegally the refunds must go back to those who paid them, in other words the consumers.

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