Tag: SC 22

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.

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I-73 Votes Ignore Immediate Local Needs

The I-73 participation agreement Horry County signed with SCDOT in December, at the urging of administrator Chris Eldridge and former council chairman Mark Lazarus, ignores local road needs, highlighted by recent flooding issues, for a new road that is years and over one billion unidentified and uncommitted dollars from completion.

When county council adopted Resolution 82-18 in July 2018, it specifically dedicated up to $25 million toward the I-73 project only. With this resolution in place, the county may not use any of this money toward repair or improvements to U.S. 501, S.C 9 or other roads in the county as flooding events since Hurricane Floyd in 1999 have shown to be needed. These funds can be used to improve S.C. 22 as that is part of the I-73 project.

There has been a general rush to dedicate funds for I-73 since right after the June 2018 primaries. Council held a special meeting on July 24, 2018 where Resolution 82-18 was passed which dedicated up to $25 million per year of 1.5% Hospitality Fee revenue to the I-73 project.

Staff immediately began conversations with SCDOT to develop and present the I-73 participation agreement. During the November 28, 2018 fall budget workshop, council approved allowing the administrator to execute the participation agreement with SCDOT. The agreement was executed by administrator Eldridge for the county and Christy Hall, the state Transportation Secretary on December 13, 2018.

At the July 2018 special meeting council also passed Resolution 84-18 directing staff to develop a plan to use $18 million of the 1.5% Hospitality Fee revenue on public safety and other roads. In addition, the resolution directed staff to draft an amendment to Section 19-6(h) of the Horry County Code of Ordinances, which currently requires all of the 1.5% revenue to be deposited in a Special Road Fund. The amendment would allow the $18 million to be used on other state approved tourism related expenses such as public safety, recreation, storm water and other infrastructure improvements.

To date no amendment has been presented to council. The amendment would require a three reading ordinance to become law. In addition, no plan for use of the $18 million has been presented.

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Horry County’s Flawed I-73 Agreement

The Financial Participation Agreement between Horry County and the South Carolina Department of Transportation, approved by Horry County Council November 28, 2018, appears to have many flaws not discussed before a resolution was passed allowing Horry County Administrator Chris Eldridge to sign the agreement.

Generally the agreement provides that Horry County will provide up to $25 million per year from Hospitality Fee revenues to fund the construction of I-73 within Horry County (the Project) and SCDOT will oversee the project from design through construction.

The written agreement states, “SCDOT shall provide an Annual Work Plan to the county on the activities proposed by March 31 that the county shall approve prior to June 30 before commencing work in the succeeding fiscal year.”

I find the use of the word “shall” interesting here in that it means a strong assertion or intention of something happening. Are we to take it to mean the county intends to approve the work plan prior to each June 30th? Does this mean county council really has much of a choice in the decision?

At least a half dozen times during the over one hour discussion about the project and the agreement county council members were told by then council chairman Mark Lazarus and/or county staff members, predominantly administrator Chris Eldridge and attorney Arrigo Carotti, that no money could be spent on the project without prior approval from county council.

To support those statements, Carotti quoted to council the first sentence of Section III (D) of the agreement which reads, “SCDOT shall not enter into a construction contract without the County’s prior approval based on considerations that the contract provide a meaningful connection to the proposed I-73 corridor in part or in its entirety.”

What Carotti did not quote were the next two sentences of Section III (D) which read, “The County’s prior approval shall not be required to enter into contract agreements for improvements to SC-22, provided the cost thereof does not exceed the estimates provided in the Annual Work Plan. Nor shall the County’s prior approval be required for any right-of-way acquisition agreement or consultant agreement for work of the Project provided the cost thereof does not exceed the estimates provided in the Annual Work Plan.”

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Hospitality Fee Alternatives to I-73 Agreement

When Horry County Council debates signing a funding agreement with SCDOT for I-73 tomorrow, there are several alternatives that should be considered before a decision is made.

As Grand Strand Daily stated in a previous article, all of the hype for I-73 is located only in Horry County. It is a given that any money designated for the project will come from Horry County only for at least the next several years.

In early calendar year 2019, the county will begin to collect Hospitality Fee revenue in excess of that needed to pay off the bonds that funded Ride I. The proposal before council is to designate approximately $25 million of that money to I-73 with SCDOT generally in control of how that money is spent.

Rather than purchasing rights of way and doing engineering design for a brand new road that may never be built beyond the borders of Horry County, why not look at using that $25 million per year toward road projects that could benefit Horry County citizens immediately upon their completion and certainly meet the standard of being tourism related?

One project that quickly comes to mind for study is raising the road bed of SC 22 between Hwy 905 and Hwy 90 to eliminate the flooding of that road that occurred during Hurricane Florence. One could even say this improvement will benefit I-73 if that road ever becomes a reality.

Two other projects that would immediately benefit both local citizens and tourists would be raising the road bed of SC 9 around Aberdeen to prevent flooding closure of the road such as has been experienced at least four times since 1999 and improvements to U.S. 501 in the Lake Busbee area to help prevent the issues Hurricane Florence and previous storms caused on that road.

Considering the designation of the excess Hospitality Fee revenue to any or all of the above three projects would have immediate benefit to citizens rather than wasting the money on purchasing rights of way and beginning engineering design of a road that may never be built.

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