Horry County could get a break on some bonds it needs to extend Harrelson Boulevard past the planned Myrtle Beach International Airport terminal expansion.
The county has until Aug. 7 to submit a list of eligible projects for two sets of tax-exempt construction bonds made available to select counties through a federal stimulus project. The county would still have to pay back the bonds over time, but under the stimulus program, the federal government would pay back 45 percent of the interest payments over the life of the bonds.
The federal government notified the counties of their eligibility for the bond programs last year based on population and employment numbers. The S.C. Budget and Control Board is in charge of doling out the funds when those counties provide lists of potential projects that fit into the specific guidelines for each bond program. If a county cannot provide approved projects worth the amount of their allocation, the remainder of the money is sent back to the state board and allocated to counties that need more funding for their projects.
Horry County was made eligible for the largest amount of potential bond money, about $19 million in recovery zone economic development bonds and about $28.6 million in recovery zone facility bonds, according to Budget and Control Board records. Currently the only project that directly qualifies for the economic development bonds is the Harrelson Boulevard extension, said Frannie Heiser, the county's bond counsel at the McNair Law Firm.
"We have surveyed all of the county projects. Harrelson Boulevard fits well, and we can really recommend it. No other entity has come and asked for the allocation," she said. "The bonds are meant to encourage business development, but there's nothing wrong with turning some of the allocation back if projects aren't ready to be bonded."
The county expects to need between $12 and $15 million in bonds to complete Harrelson Boulevard, meaning they surrender between $4 and $7 million in bond capacity back to the state.
Heiser said the county will submit facility bond projects including the planned International Technology and Aeronautics business park off the Myrtle Beach International Airport runway and the planned Bucksport Marine Park at the old Bucksport marina. Both projects are aimed at bringing in new companies with jobs and a higher range of salaries than the current average salary in Horry County. The planned airplane mechanics school considering relocating in Horry County could also be eligible for those recovery zone facility bonds.
The bonds must be issued by Dec. 31, so the Budget and Control Board will work quickly to let counties know if their projects qualify and how much money has been re-allocated to other projects from the counties that received larger unused amounts.
Georgetown County was not eligible for the bond funds in the federal formula, partly because several larger companies with eligible projects applied for other favorably taxed stimulus bond money, said Michael Sponhour, spokesman for the Budget and Control Board. He said International Paper had requested $20 million for a project.
The board will start considering projects on Aug. 7.
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