Tag: Johnny Vaught

County Council Guts Impact Fee Ordinance Before Final Passage

Horry County Council gave unanimous approval to third reading of an ordinance establishing impact fees on new construction but only after voting to reduce the fees by 81.5% before final passage.
To those who haven’t followed the issue closely, the reduction to only a nominal fee that will be charged may seem an action in the best traditions of a conservative council.
BUT IT’S NOT!
In fact, it is a huge victory for special interests to the detriment of average taxpayers in the county.
What eight members of council really voted for was to cave-in to the wishes of the development lobby while ignoring the wishes of the taxpayers.
The development lobby was successful in defeating attempts to impose impact fees at least twice in the last 15 years. After county voters supported instituting impact fees to help pay the cost of new development by a 72% vote in 2018, it was obvious some type of bone had to be thrown to voters this time around.
The question is not whether the explosive development the county is currently experiencing is going to increase the need for new or improved roads, new stormwater infrastructure, new fire stations, new parks and so on. Rather the question is who is going to pay for these improvements of basic needs.
Eight members of council, Johnny Vaught, Dennis DiSabato, Danny Hardee, Mark Causey, Orton Bellamy, Bill Howard, Cam Crawford and Gary Loftus voted to extend those costs to every taxpayer in the county rather than limit the charge to those causing the increase – namely owners of new construction whether private homes or commercial.
Council Chairman Johnny Gardner, and members Harold Worley and Tyler Servant voted against the amendments gutting impact fees and for the wishes of the voters as expressed in the referendum.
New single-family homes will be the class of construction that will generate the greatest proportion of the new fees. The first two readings of the impact fee ordinance passed with a fee amount of $6,645 per single-family home with other types of construction, multi-family, retail, hotel for example, having maximum fees imposed in accordance with state law.
Tuesday night the eight council members named above amended the ordinance to remove impact fees for road and stormwater infrastructure from the ordinance thereby reducing the fee for single-family homes from $6,645 per home to $1,236 per home.
But the costs for new and improved road and stormwater infrastructure to serve the new developments throughout the county won’t go away just because council removed those portions of the fee from the ordinance.

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Crunch Time for County Council and Impact Fees

Tuesday night Horry County Council will vote on third reading of an ordinance to impose impact fees on new construction in the unincorporated areas of the county.
Two and one-half years ago, nearly 75% of the voters said yes to an advisory referendum question asking whether county council should establish impact fees in the county.
Despite passing the first two readings unanimously, third reading passage of the ordinance is not assured.
On the table at third reading of the ordinance is imposition of an impact fee of approximately $6,600 for new single-family homes and varying impact fees for other types of new construction depending on the type.
Numerous sources have told me over the past two weeks the pressure on council members from the development lobby to water down the bill or kill it completely has been intense.
That lobby, composed of large landowners, builders and their associated sub-contractors and the real estate sales industry is pushing the message that impact fees will cause a significant slowdown in construction costing jobs and seriously impacting the local economy as well as making it more difficult in recruiting new businesses to the area.
The real reason for the opposition to impact fees is the builders do not want to pay $6.600 more out of their pockets each time they receive a new building permit. Developers will recover that money when the house is sold because the cost of impact fees will be passed on to the new homeowner, but they don’t want to float that sum for the few months between start of construction and sale in today’s market.
The impact fee will add approximately 2.5% to the cost of the average new home in Horry County. Prices on new homes have risen considerably more than that in the past year simply through market forces of supply and demand and sales of new homes have not slowed down because of the increasing price.
Impact fees in Horry County are not a new concept. Grand Strand Water and Sewer Authority has been collecting impact fees for a number of years. The statement in the county’s Imagine 2040 master plan explaining those fees is simple, “GSWSA collects water and wastewater capacity fees (impact fees) from new customers so that the current customer base does not bear the burden of new growth for both water and wastewater improvements.”
The development lobby used its same arguments when GSWSA imposed impact fees. Those arguments were totally false then and remain totally false now. One only has to drive around the county and view all the new construction projects in various stages of completion to see how false the argument is. GSWSA impact fees have not impacted new construction one iota.

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Fate of County Council Draws Near with Upcoming Vote on Impact Fees

In two weeks, the 12 members of Horry County Council will go a long way toward deciding their future fates with the voters when third reading of the county impact fee ordinance comes up for a vote.
In 2018, over 70% of voters approved establishing impact fees in the county on an advisory referendum question on the general election ballot.
Those voters have not forgotten their eminently clear message to county council – vote for impact fees.
On the table at third reading of the ordinance is imposition of an impact fee of approximately $6,600 for new single-family homes and varying impact fees for other types of new construction depending on the type.
The need for impact fees to pay for the costs of new development is quite simple. Revenue from those fees can be used to fund new capital projects in a variety of categories including roads, parks and recreation facilities, libraries, fire stations and police stations that will be needed to serve the huge amount of development currently underway in the county.
Using impact fees to pay for such new construction can reduce the pressure on the general fund to pay those costs or the need to impose such things as special projects sales taxes such as the RIDE tax.
To further exacerbate the issue, eight members of county council (Johnny Vaught, Dennis DiSabato, Cam Crawford, Gary Loftus, Bill Howard, Orton Bellamy, Danny Hardee and Mark Causey) provided the votes to pass the largest individual tax increase in Horry County history – 7.5 mils in the unincorporated area plus increases in two additional fees.
As one social media post noted about the tax increase, “Absolutely heinous that the special interests and county council put all this (costs of) new development on the backs of existing taxpayers. Unbelievable! If they had imposed impact fees when the majority of HC residents approved them several years ago, we wouldn’t have to have such huge mil increases. This is literally taxation without representation and it’s theft.”
And another, “The tax and spend so-called Republicans don’t give a flip. They will find any excuse to raise taxes on the hard-working residents of Horry County.”
Three members of county council, Chairman Johnny Gardner, Harold Worley and Al Allen received thanks for voting against the tax increase and “putting the people first.” Council member Tyler Servant was absent for the vote.
The message in those posts is certainly clear, but one wonders whether all council members are hearing that message.

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Gagging of Al Allen Points to Deeper Issues in County

Last week’s premature adjournment of the county council meeting in order to gag council member Al Allen’s requested discussion of county legal fees allowed deeper issues inside the government and county to come to the surface.
A simple request from Allen for county legal fees paid to outside attorneys has been blown up into a supposed politically motivated conspiracy, according to a report in a local media outlet. Two “county officials” speaking on conditions of anonymity, according to the story, put forth a theory alleging a plot to fire County Administrator Steve Gosnell and County Attorney Arrigo Carotti was the reason for Allen’s request.
And make no mistake, the information Allen requested and which was ultimately provided to Allen, other council members (although many of those other members saw the information well before it was produced to Allen) and the media is definitely public information.
According to statements in local media, County Attorney Arrigo Carotti brought Allen’s request for the information on legal fees to council member Johnny Vaught. The excuse Vaught gave to the media was Carotti did that because the legal department budget falls within the oversight of the county Administration Committee of which Vaught is chairman.
Vaught told media he had concern that county legal strategies could be discussed and he didn’t want that sensitive information to become public. I would submit that type of information is already public.
If someone wants to assess legal strategy in any lawsuit, they can go online to the judicial records to read the complaint, response, motions and responses, depositions and view the exhibits associated with the case. All of that information becomes open to the public the minute it is filed with the court. A person is going to gain a lot more information about legal strategy from those documents than from records of how much in legal fees was paid and to whom it was paid.
Vaught’s entire premise that he was attempting to protect privileged information is ridiculous. But the ensuing rhetoric which evolved around the issue and the players involved point to deeper intent.
The real story is the one involving those who said the information requested by Allen should not be released publicly and who created a false narrative in an attempt to publicly embarrass Allen and, later, council Chairman Johnny Gardner.

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SWA Officials Voice Paranoid Reaction to Water Testing Around Landfill

Horry County Solid Waste Authority (SWA) officials evidenced a paranoid reaction to local media last week when commenting on water samples taken near the landfill for contamination testing.

SWA Executive Director Danny Knight and landfill operations head Mike Bessant both called the desire of the county Infrastructure and Regulation Committee to test the water as politically motivated.

Bessant was quoted in local media as saying those raising concerns about water quality want to “discredit the authority and try to make them look bad” and “everybody’s always after us to try to get us down.”

Knight was quoted as saying private haulers have tried to take some of the business in the county and some council members “get on the soapbox and scream.”

County council member Johnny Vaught, never one to miss a chance to be quoted in local media, was credited as saying there is a faction in Horry County that wants to dissolve the SWA.

This effort to redirect the conversation from potential water contamination near the landfill to political tactics to discredit the authority was immediately repeated by a local reporter who appears to have very little knowledge of the history of the SWA.

The SWA was created 30 years ago by county council under county Ordinance 60-90.

The first paragraph of that ordinance reads, “There is a need in Horry County to develop an acceptable alternative method of solid waste disposal and to reduce the tonnage of solid waste disposal in sanitary landfills due to the County’s high water table and other geologic characteristics that make utilization and expansion of the existing landfill and development of new landfills especially expensive and difficult.”

That is a formal way of saying dumping garbage in and around a swamp is not good public policy. Develop alternative methods for disposing of the county’s garbage.

When the authority was created, the general consensus on county council was the existing landfill had approximately seven years left until it was full. By the time that landfill was closed, the SWA would have developed plans to oversee safe and effective ways to transfer and dispose of the garbage elsewhere, presumably in landfills in other parts of the state.

New Moves in the Filing Controversy

Election Season Opens Early in Horry County

The next 14 months are going to provide interesting political times in Horry County. During that period, the cities will hold elections this coming fall and county and state primaries will be contested in June 2022.

Electioneering has already begun.

Horry County School Board Chairman Ken Richardson is already making a strong bid to replace Tom Rice as the South Carolina District 7 representative to the U.S. House of Representatives.

Two people have been spreading the word around the county that they intend to challenge Horry County Council Chairman Johnny Gardner in the June 2022 primary.

Mark Lazarus, who Gardner unseated in 2018 with what is probably the biggest upset in Horry County political history, reportedly is telling supporters he wants a rematch with Gardner in the 2022 Republican Primary.

Johnny Vaught, the current County Council District 8 council member, and Dennis DiSabato, the current county council member for District 3, have also been broadcasting they will be candidates for the Republican nomination for county chairman in the 2022 primary.

What is interesting about these announcements is Vaught was a major spokesman for Lazarus’ reelection. Whenever Lazarus needed a surrogate to speak for him at a meeting or other campaign event in 2018, Vaught was the chosen spokesman.

If Vaught and Lazarus both contest the chairman primary, it will bring up another interesting dynamic. Both have used Crescent Communications, the political consulting firm of state Reps. Russell Fry and Heather Crawford and county council member Cam Crawford in past campaigns.

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.

County Council Adds More Controversy to Hospitality Fee Settlement

Horry County Council approved an amended settlement agreement at its special meeting Monday night that added to the controversy regarding settling the hospitality fee lawsuit.

Council split 7-5 on votes to amend the settlement agreement and to approve the settlement agreement as amended. Those voting for the agreement were Johnny Vaught, Dennis DiSabato, Cam Crawford, Gary Loftis, Bill Howard, Tyler Servant and Orton Bellamy.

The Deep Six (Vaught, DiSabato, Crawford, Loftis, Servant and Howard) can always be counted on to support anything the Myrtle Beach Area Chamber and other special interests in the county want. Vaught is counting on that group to fund his run for chairman in two years while DiSabato, Crawford and Loftis expect significant donations from special interests to fund their upcoming reelection campaigns.

The special interests want I-73, they fall in line to keep it in play.

Voting against the settlement were Chairman Johnny Gardner, Harold Worley, Al Allen, Danny Hardee and Paul Prince.

As Worley said at the beginning of open debate on the question, the elephant in the room was I-73.

The settlement agreement as presented Monday night would provide approximately $14.5 million per year toward I-73. As Worley pointed out this amount is a drop in the bucket for a project that will require approximately $670 million to complete the road in Horry County, $1.3 billion to reach I-95 and over $2 billion for the total project to the North Carolina border in Marlboro County.

But the drop in the bucket is important to those landowners in Horry County who will benefit from right of way purchases for the road and the engineering and other businesses who will profit from the early design and site work for the project.

The federal and state governments will have to come in with significant money for the road to ever be completed but the local special interests can realize a significant income from the early work that can be paid for if the county contributes. Like always, it’s all about the money.

Horry County Council Votes Unanimously to Cancel I-73 Contract

Horry County Council voted unanimously at its regular meeting Tuesday night to cancel the Financial Participation Agreement with the South Carolina Department of Transportation that would have provided funding for the Interstate 73 project.

The agreement was approved by council during a special meeting held on November 28, 2018 and signed by former county administrator Chris Eldridge on December 13, 2018. Former council chairman Mark Lazarus led the charge to get the agreement signed before he left office December 31, 2018. Lazarus and Eldridge were the two foremost proponents of having the county enter into the agreement with SCDOT.

In addition, Lazarus and Eldridge were instrumental in orchestrating the elimination of a sunset provision from the county’s hospitality fee legislation earlier in 2018 in order to direct revenue to I-73.

But it all began to fall apart in March 2019 when the City of Myrtle Beach sued Horry County over continued collection of hospitality fees after the bonds for the first RIDE projects were paid off, an action the city called illegal.

Last spring, Horry County Council approved a resolution to refund hospitality fee revenue collected within the municipal boundaries to the respective cities where it was collected. The resolution included a proposal for the municipalities and the county to provide some funding for I-73 with percentage contributions from each agency in line with the percentage of the total amount of hospitality fee revenue each city received.

The cities dismissed that resolution out of hand.

Now, the cities and the county are considering a settlement agreement to the lawsuit with virtually the same terms with the exception that the cities will be on the hook to pay their attorneys 33% of the refunded revenue, approximately $7 million.

The blame for the cancellation of the I-73 agreement can be laid directly at the feet of Myrtle Beach and the other cities that joined in the lawsuit and refused to accept virtually the same settlement they are now considering.

Several county council members, including Chairman Johnny Gardner and council members Harold Worley and Johnny Vaught made exactly the point that the cities could have had the same settlement without paying such large attorney fees by accepting the resolution in the spring. It must also be noted the I-73 contract would not have been cancelled if the cities had taken this action.

Another Hospitality Fee Filing, Another Email, More County Lunacy

The City of Myrtle Beach filed a supplemental memorandum Monday in support of its lawsuit against Horry County’s continued collection of hospitality fees.

Leading the memorandum is an affidavit by North Myrtle Beach City Manager Michael Mahaney providing evidence of the county’s continued collection of the hospitality fee in the City of North Myrtle Beach after June 21, 2019, and supporting a June 26, 2019 motion by Myrtle Beach for the county to show cause why it was not in contempt of a temporary restraining order issued by Judge Seals on June 21, 2019 prohibiting same.

Included in the filing was an email originated by attorney Henrietta Golding who is representing the county in the lawsuit.

The email appears to have evolved out of the string of emails that were the subject of several media stories yesterday. The email that appears to have started the string was sent by former county council chairman Mark Lazarus to Golding.

In her email, Goldings criticizes the judge and the temporary restraining order the judge issued against the county for having “many errors”; states, “This is solely the fault of Myrtle Beach” and appears to discuss the county’s strategy in moving forward by saying the county will try to get a “supersedeas” and saying “if the county took steps to suspend the ordinance (creating the hospitality fee), then probably create legal issues detrimental to the county.”

Golding’s email was sent to Lazarus, county council members Johnny Vaught, Harold Worley, Tyler Servant and Dennis DiSabato, interim administrator Steve Gosnell, county attorney Arrigo Carotti, North Myrtle Beach Mayor Marilyn Hatley, Mahaney and Surfside Beach City Manager Dennis Pieper.

The choice of recipients is confusing as Golding only represents six – the four council members, county administrator and county attorney. Lazarus has no official position with the county since his term ended December 31, 2018. Hatley, Mahaney and Pieper support the position of Myrtle Beach that the county has been illegally collecting the hospitality fees since January 1, 2017 when the original sunset provision of the county hospitality fee ordinance expired.