‘It’s a tool’: Myrtle Beach talks creating improvement districts to reshape downtown
As Myrtle Beach actively works to revitalize the downtown, officials are now discussing a program that would give merchants, business operators and property owners the power to boost the area’s image through the designation of an Improvement District.
After city leaders approved the Downtown Master Plan last March, officials have made a series of efforts to redevelop and revitalize portions of downtown Myrtle Beach. Part of that revitalization includes improving elements of the downtown that could increase property values, attract developers and alter public perception.
“We are working to really take the heart of our city, our downtown area, and revitalize it in a way where it’s not just a great place for our visitors, but it’s a great place for our residents, for our businesses, for our visitors and for our young people,” Mayor Brenda Bethune said during a workshop held Wednesday with the Myrtle Beach Downtown Development Office.
An Improvement District is essentially a geographical area, designated by city approval, where local stakeholders can oversee and fund detailed improvement projects that would enhance services beyond what the city has the capacity to do. Those projects could include such efforts like beautification, marketing, improved safety, hospitality or quality of life issues.
It’s not recommended districts replace or terminate existing city services, DDO Executive Assistant Brian Schmitt said.
Schmitt said improvement districts can either be independent of local government, having almost complete autonomy to finance, construct, and manage specific projects, while others are dependent on local government, created only to increase revenue for specific projects.
Those independent districts would be governed by an outside corporation with an advisory board comprised of community members, business owners, stakeholders, municipal staff and elected officials to determine the groups’ priorities and then allocate the money to fund those projects.
The advisory board would also be tasked with ensuring each area within the district is receiving its proportional benefits, Schmitt added.
Projects would be funded through an additional tax placed on the properties within the designated boundaries of that district. The percentage of property tax, which has not been determined, would depend on the amount the group wants to generate to fund their project, DDO Executive Director Lauren Clever said.
“It’s a tool,” Schmitt said. “It requires property owners to make proportional contributions to the additional public services that will improve that district.”
Improvement Districts have been implemented in several towns and cities across the nation, officials said, often referred to as Business Improvement Zone, Special Improvement, Special Assessment, Business Improvement District or Municipal Improvement District.
These designations are found in popular tourist destinations, such as Main Street in Columbia, Hillsborough Street in Raleigh, North Carolina and downtown Wilmington, North Carolina. Representatives from each location were in attendance during the forum, detailing their implementation and how the program has significantly improved those areas.
Prior to a Business Improvement District being adopted along Main Street in Columbia about 20 years ago, Matt Kennel, President and CEO of City Center Partnership, LLC, described their downtown as a depressing area with a handful of retailers that didn’t attract much business. With a focus on beautification and safety, the community has renewed the downtown into a vital attraction for residents, tourists and businesses.
Kennel added the community program is now scaling back on their business recruitment efforts with about five storefronts currently vacant. He said there were about 40 vacancies in 2007.
“Over the years our budget has grown - starting out at $300,000 a year and now it’s about $1.5 million a year - but it’s grown as the property tax base increased, and also contributions have increased with the city and the county now give us money from hospitality tax, as well as a contribution to the BID,” Kennel said. “We’ve grown, we’ve done different things and we continue to evolve.”
This story was originally published January 29, 2020 at 3:11 PM.
