One small step toward I-73, one big message to federal government

Horry County Council took another step toward building Interstate 73 by entering an agreement with the South Carolina Department of Transportation. But that does not mean millions of dollars will be given to the SCDOT yet.

The resolution was passed 10-2 at Wednesday’s fall budget retreat. Council members Harold Worley and Paul Prince were the only votes against the resolution.

The resolution will allow County Administrator Chris Eldridge to begin sending funds to a trust account at the South Carolina’s State Treasurer’s office. The bigger decision to allocate the funding was made at the July meeting of county council.

The funding will help build the Horry County section of I-73, which is expected to cost in excess of $300 million to complete. The entire road, which will run from Horry into North Carolina, is expected cost over $1 billion to complete.

Horry County Chair Mark Lazarus said the $23 million would not be a blank check to the SCDOT. It would require work plans and county council approval to make sure that the money is being used as the county expects it to be. Without that approval, the money would stay in Horry County’s pocket.

In addition, Assistant County Administrator Justin Powell told council that the plan could be canceled at any point as long as outstanding costs are paid and with a 30-day notice.

The money is coming from the hospitality fee once it’s freed from current obligations, not from any tax. Horry County has a 1.5 percent hospitality fee which was grandfathered in and is higher than anywhere else in the state.

“Every other county in this state wishes they had this revenue,” Eldridge said.

He said that the increased revenue from the hospitality fee is why Horry is in a position to pay for its portion of I-73 itself.

During the summer, county council agreed to give the up to $25 million from the hospitality fee to build I-73. During the same debate, council decided to devote the other $18 million to public safety expenses. The money going to safety has to be used for tourism related expenses, per state hospitality fee law.

Worley said he wants the process to slow down and that more time is needed to vet this idea. He wants a similar commitment for the $18 million to public safety. He asked council to defer the resolution for later discussion in committees and then a workshop, but his motion failed.

The hospitality money comes from the hospitality fee which is levied on prepared food, ticket sales and rentals. The money has limits placed on it by the state that controls where it can go and how it can be used. Generally, the funding has to go to tourism-related expenditures.

When the decision was made, Eldridge said Horry County paying for its share of I-73 will display to the federal government that it’s serious about getting I-73 built — sending this message before state and federal legislatures go back into session in January.

“I don’t know too many communities around the country that can say that,” Eldridge said in July.

And national leaders have spoken in support, especially in the days following Hurricane Florence. President Donald Trump, Sen. Lindsey Graham, Rep. Tom Rice and many others have spoken support for I-73 as a route to help with storm evacuations. And a massive infrastructure funding bill is expected to be passed by U.S. Congress next year.

Even if federal legislators are unable to help find the funding, Horry County can drop its deal with SCDOT. Lazarus said that Wednesday’s decision doesn’t limit the county’s choices to abandon the project in the future, that will be up to council and its new members.

“We’ve put our money where our mouth is,” Lazarus said.

This story was originally published November 28, 2018 at 5:18 PM.