Myrtle Beach aims to discuss funding for I-73 in private with Horry County, others

The aura of confusion surrounding the funding of I-73 remains as Myrtle Beach officials want to enter into confidential negotiations with Horry County and other neighboring municipalities responsible for funding the interstate project.

City officials will vote Tuesday morning to enter into confidential discussions with Atlantic Beach, Aynor, Briarcliff Acres, Conway, Loris, North Myrtle Beach, Surfside Beach and Horry County to negotiate a local funding agreement for I-73.

“The negotiations to arrive at the proposed terms of an agreement generally are not conducted in public,” Myrtle Beach spokesperson Mark Kruea said. “A meaningful discussion needs to be held among the parties of interest.”

Any proposed agreements will be discussed and voted on in a public forum. No final agreement will be reached in private, Kruea said.

With Myrtle Beach, North Myrtle Beach and Surfside Beach all passing ordinances to reallocate the county’s share of accommodations tax and hospitality tax into their own municipal budgets, the future of I-73 has been a topic of skepticism as the county stands to lose $20 million annually.

Agreements were made last summer with SCDOT to build I-73 with the county funding its portion of the interstate with $23 million it received in accommodations tax. Horry County also was meant to pay installments to complete the project over the next 20 years.

Myrtle Beach officials feel I-73 is still a possibility as long as every government that would directly benefit from the construction of the interstate formulate a funding plan. Earlier this month, Myrtle Beach officials passed an ordinance seeking a partnership with the county to fund I-73, suggesting the county provide $9.8 million and the city contribute $7.5 million.

Despite city officials stressing their support for I-73 during public meetings, Myrtle Beach filed a lawsuit against Horry County last week claiming the county illegally collected millions of dollars in hospitality fees.

A 20-year agreement, that is now expired, permitted the county to collect a portion of the city’s hospitality and accommodations taxes. Now, municipalities are restricting the county from taking their money, with each collecting its 3 percent of the current accommodations tax and 2 percent of its hospitality tax.

City leaders in the filing said they did not agree to hospitality taxes being collected after Jan. 1, 2017, for anything other than paying off loans to the original road program.

While city officials said they would not comment on pending litigation, Horry County Council Chairman Johnny Gardner was surprised by the lawsuit. Just one day before the lawsuit was issued, Gardner said he was expecting to meet with municipality leaders to discuss I-73 funding.

In his experience as a lawyer, Gardner said, negotiating in good faith is typically better than a lawsuit. Now it looks he will get the opportunity to do just that. Horry County Council voted unanimously to allow Gardner to enter negotiations with the multiplicity mayors.

However,the Council did not terminate its contract with SCDOT, delaying the decision to the April 16 meeting. Still, Horry County wants to be the one to collect the fee with money given to the municipalities for roads but with public safety as the priority.

County Council Member Harold Worley said it is better for Horry County to keep collecting the money, but he thinks it’s important to help give more of the money to benefit the municipalities. He said if all of Horry County stays together it will equate to $40 million. If it decreases to 1 percent as the municipalities propose, it’ll come to $26 million.

“That’s a lot of asphalt and that’s a lot of salaries for public safety,” Worley said.

This story was originally published March 25, 2019 at 3:59 PM.