‘Get your heart right’: Horry, Myrtle Beach come to the table on I-73, hospitality fee

The fate of the hospitality fee in Horry County now rests in the hands of county council chairman Johnny Gardner and the mayors of local municipalities.

Horry County Council voted unanimously to wait on deciding the future of its current contract with the South Carolina Department of Transportation to build I-73 in a special meeting on Monday. The issue will be revisited on April 16. In the same vote, council directed Gardner to sit down with the cities’ mayors to negotiate a compromise on how the hospitality fee will be collected and used.

Gardner called the special meeting Friday to address I-73 and a lawsuit from Myrtle Beach over the county’s use of hospitality fee money. Horry County Administrator Chris Eldridge’s employment was not discussed at the meeting.

While the lawsuit is still pending against Horry County, Gardner said last week he believed moving forward in good faith is the best path for both. He said on Monday night he and local leaders all have the residents’ best interest at heart, so the negotiations should go smoothly.

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

City of Myrtle Beach Attorney Thomas Ellenburg said municipalities that will benefit from the interstate project need to put aside their differences to come to a resolution on how to fund I-73.

“Maybe this can work and maybe not, but it is the only rational path forward,” Ellenburg said. “The parties have to frankly and honestly build what they can and can’t do in terms of contributing toward a fund for the purposes of I-73, regardless of the source of those incomes.”

Ellenburg added that each municipality will avoid any future litigation by negotiating behind closed doors. Myrtle Beach leaders stressed any proposed agreements will be discussed and voted on in a public forum.

County council member Harold Worley said all of Horry County would be better off if the county collects the fee, but helps make sure the needs of the municipalities are met. He said if all of Horry County stays together it will equate to $40 million collected from a grandfathered-in 1.5 percent fee. If the municipalities claim it, the fee decreases to 1 percent at $26 million collected, he said.

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

Worley, who represents North Myrtle Beach, said Gardner has a unique opportunity to secure funding for roads and public safety. He said the entire county could build the road over 30 years, bringing the yearly contribution down to below the original $20 million per year in the original contract.

“I think if you guys get your heart right, we can fund I-73 and give you what you want for public safety,” he said to Gardner. “I believe most, especially the tourist industry, will look back at tonight as a turning point in road construction.”

While Horry County wants to help fund I-73, it is not the council’s only goal. Horry County wants to offer better pay and benefits to its public safety employees while avoiding a tax increase. This money could help accomplish that goal.

Council members Johnny Vaught and Bill Howard reiterated public safety would be first in how the county spends the money. Gardner agreed that would be a priority for him in the negotiations.

“We can save I-73 for the municipalities,” Gardner said. “But we have go to save $10 million for the county and public safety.”

In addition, council member Paul Prince stressed the importance of improving the roads Horry County residents use before building a new one. These roads include Highway 9 and others that lead into Myrtle Beach.

“It ain’t right to cram more and more people here without taking care of our own people,” he said.

As the tourism and hospitality industry grows in Horry County, so will the money collected from the hospitality fee, allowing for more road projects. Council Member Dennis DiSabato said the hope is to use this money to pay for roads for the future of Horry.

“This is not just an I-73 issue,” he said. “This money could help build roads for the next 50 years of Horry County.”

This story was originally published March 26, 2019 at 3:36 PM.