Development Update: Here’s where Horry County stands on getting an impact fee

Impact fees are going to get their day in Horry County Council Chambers soon.

Horry County Planning Director David Schwerd said the county has received the first draft of a study that allows it to move forward with implementing a fee. The planning staff is currently reviewing the study that was researched by TischlerBise, Inc, a Maryland-based consulting firm.

Schwerd said once his staff reviews it and deems it ready to move on, a joint meeting with the Horry County Planning Commission and County Council will be held to discuss the findings and next steps to getting the fee enacted. He expects this meeting could be held in about a month’s time.

The study officially began in March of this year, and it was in response to overwhelming public support for the fees levied on new development and building in Horry County.

More than 70 percent of Horry County voters said they were in favor of impact fees in a 2018 non-binding referendum.

The council took this information and used it to show state lawmakers the support for the fees and as a justification to pay TischlerBise more than $140,000 to begin the study. The money came from excess funds left over in the General Fund of the county’s budget.

State law requires local governments to conduct a thorough study of how an impact fee might affect affordable housing. And before a fee is written into law, the state requires a detailed account of how much the impact fee will cost, intended uses and other logistical questions.

The planning commission will then have to adopt the plan, and then it will go to county council for three readings.

“State law will require that the planning commission hold a public hearing and make a formal recommendation to adopt the impact fees. The fee would then have to be adopted by ordinance by county council,” Schwerd said.

Changing state law

Beyond the study, the Horry County Council passed a resolution asking the state legislature to loosen up both the laws requiring a study and how an impact fee can be used.

Currently, the fee has to be proportionate to the impact the new development creates on public services. The money generated must also benefit the people paying it and cannot go to reoccurring costs like salaries.

“We can get the money to get a building built, but we can’t staff it,” Council Member Danny Hardee said.

In addition, the money must be refunded to the property owner if it is not spent within three years.

When county council discussed the fee changes last year, the council members made recommendations as to how the state law could be improved.

A key change Horry County would like to see is allowing the money to be kept for 10 years before it must be refunded. The county also wants the ability to use the money to build libraries, government buildings and affordable housing.

During this debate, council member Dennis DiSabato said he supports an impact fee, but he reminded council that it will not be a cure-all for financial issues facing the county.

Council member Harold Worley agreed, but added an impact fee, especially with changes to the state law, would be a great addition to how the county generates money.

“It’s another tool in the tool box,” he said to council.

This story was originally published August 22, 2019 at 2:10 PM.