Administrative nightmare or positive step? Myrtle Beach officials spar over downtown plans
Myrtle Beach planners and city leaders are at odds over a proposal that would strip nearly all zoning regulations along Ocean Boulevard to pave the way for a desired influx of development.
Planning officials have expressed their opposition to the plan, citing it as a reckless endeavor that will have a profound impact on the city in years to come, contending that city leaders are unaware of the magnitude of what they’re proposing.
“This is a long-range effect we’re talking about here,” planning member Don Shanks said. “This can have a significant impact on the city, not for five years or 10 years, but for 20 to 25 years, so something we’re doing right now is not minimal. It’s probably the most critical thing we could do.”
Officials have also taken issue with what they consider a lack of communication stemming from City Council and City Manager John Pedersen regarding the plan.
The proposal, which received first reading approval last month from City Council, aims to expand the Redevelopment District Zone to encourage investment, mixed-use development and redevelopment in areas that are struggling economically from 29th Avenue North to the southern city limits between Kings Highway and Ocean Boulevard.
Currently, the zoning designation, also known as a floating zone, spans east of Kings Highway from 8th Avenue North to 3rd Avenue South. A floating zone is typically used to plan for future land uses that are anticipated or desired by the community, but are not confirmed. Each zone, upon approval, is unique to its own specifications.
Officials pressed the proposal would give developers free range to build what they want within the target areas by loosening the regulations and guidelines they are required to adhere to when submitting an application to the city. They also believe passage would result in an administrative nightmare.
Pedersen has a different take, defending the proposal as a step in the right direction to seeing both desired growth and revitalization within the city. He added that both he and council have effectively communicated their agenda to planning members.
Mayor Brenda Bethune also took offense to the commission’s claim that council isn’t aware of what they’re doing, asserting that much time has been spent researching ideas and analyzing how other municipalities have implemented similar incentives for development.
“To say we don’t understand what we’re doing is a misstatement and it’s very disheartening because there’s been a lot of homework done on this,” Bethune said. “When we look at something like this, it is thoroughly discussed.”
The Proposal
City leaders first presented the idea of expanding the RDZ in December, pressing the change would upgrade the area’s physical, social and economic character by promoting investment and development in areas that are underperforming economically, need redevelopment or are underdeveloped.
“We have a relatively small area where the RDZ is now, and I can’t see personally a reason not to provide the same sort of incentives north and south of the current area,” Pedersen said. “This is a positive step in the right direction to provide assistance to those property owners.”
It received first reading approval on Jan. 14.
Council has said developers and/or current business owners will be more inclined to submit proposals with innovative land planning and site design that could enhance the city’s aesthetics if there is more flexibility when it comes to the zoning and redevelopment standards.
Pedersen cited only a couple of instances over the years where an applicant refused to redevelop land based on the current zoning code. He said one mom-and-pop hotel couldn’t alter their property based on the width of the driveway.
“Some of those things occasionally get in the way of accomplishing what we want to accomplish,” Pedersen said at Planning Commission’s Feb. 4 meeting. “We’ve had that kind of feedback before from folks in the past who have run into obstacles.”
He added how the city has recognized several small lots along the Boulevard that could be combined to allow current businesses to expand or a developer to propose a larger project.
“Council has asked us to be more proactive in terms of our economic development strategy,” Pedersen said. “In the past we’ve waited for opportunities to come to us, and they’ve asked us to go after the opportunities and be a little bit more strategic with what we go after.”
An RDZ already spans east of Kings Highway from 8th Avenue North to 3rd Avenue South. The designation, which was implemented in 2015 to jump-start development, has received only two proposals since, planning officials said, adding that there hasn’t been “blazing success” in that area.
Per the ordinance, the RDZ expansion would exclude residential and highway commercial zoning districts but would allow developers or businesses to start with a blank slate of zoning on eligible land and basically dictate their own zoning district. Staff would consider applications on a case-by-case basis.
Each proposal would be subject to a public hearing before planning and approval by council.
Aging accommodations, structural dilapidation, concentrated density without adequate parking or public transportation, foreclosed property, and tax delinquencies are some factors that would justify a RDZ classification.
Additionally, retail uses, tourism-related business, cultural arts activities, corporate headquarters, research and development corporations, high technology growth business, residential uses, particularly workforce housing, and historical preservation projects would be eligible for an RDZ district.
Applicants must have a minimum threshold investment of $1 million for mixed-use or commercial purposes, according to the ordinance. Architecture designs must provide for a mix of uses, be joined by public transportation, sidewalks or streets, be aesthetically pleasing and enhance the character and value of surrounding properties.
“City Council has asked us to provide incentives to mom-and-pop hotels and we’ve done that with financial incentives council approved,” Pedersen said. “We want to provide more flexibility; some lots are so small.”
To coincide with the RDZ proposal, council recently approved a voucher program to encourage small businesses east of Kings Highway between 29th Avenue North and 9th Avenue North, the Arts & Innovation District and 3rd Avenue South to the city’s southern limits to renovate their properties.
With restoration desired in these target areas, city leaders said it will aid in attracting normal development and redevelopment activity consistent with public health and safety.
Buildings or businesses that qualify can earn back up to 2 percent of their investment over a five-year period, with money reimbursed from payments made to the city for things like business license, building permits or water and sewer, officials said.
“What we are trying to do is spur investment in areas where it is needed,” Bethune said. “The city is making a very significant investment in the Downtown Master Plan and entertaining investors and developers who want to revitalize and develop, so the time is perfect to do this now.”
‘We ought to deny this’
While planning officials share council’s desire to see development boom across the area, they voiced apprehension to supporting the proposal in its current form, noting the “extensive” impact it could have overlapping with several zoning classifications that include thousands of properties that could be considered RDZ.
“I would like development to happen but sometimes you can’t force the string,” Commissioner Joyce Karetas said at Tuesday’s meeting. “I want to embrace this because I want something to happen but then I see the unintended consequences and it makes me very concerned.”
If the proposal is approved by council, it would allow developers to submit an application to build anything, sans restrictions, in the targeted areas. For example, someone wanting to develop a high-rise hotel on a plot of land where that land use is not recommended could receive passage despite the current laws that have specific setbacks, water and sewer expectations, density and height restrictions, and permitted land uses per zone.
While planning would have the ability to recommend approval or deny the proposal, city council will ultimately have the final say.
Commissioners expressed interest in meeting with the “supposed” developers approaching council to discuss potentially adjusting the zoning or creating new zones to accomplish the objectives of redevelopment rather than scrapping what’s currently in place.
“We want to understand the needs of these developers,” Commissioner Zeb Thomas said. “The plan right now is to do away with the plan and allow anybody to present anything for consideration. The existing plan is better than no plan.”
Commissioners also feel council is trying to force the proposal through and hasn’t thoroughly explained its objective or done its research, especially when there’s been little demand for development in the current RDZ.
Senior Planner Kelly Mezzapelle said it appears council is getting “impatient” with the city’s lack of development. She added officials have recognized any efforts put forth to jump-start development have inevitably stalled. This is the best idea they have come up with, she said.
“I totally get that you all aren’t excited about this idea, and I don’t disagree whether or not it’s going to solve the problem,” Mezzapelle told the commissioners. “But if you don’t get them an alternative, they’re going to have no choice but to run this.”
Bethune objected to the idea that the city has become impatient, asserting that when one plan doesn’t work, there has to be other ideas proposed to achieve the desired goal. She said the city has to think progressively and be proactive to attract different people to the city.
“I think we ought to deny this,” Commissioner Robby Warner said.
Commissioners agreed there could be an alternative, less-destructive plan proposed to achieve council’s objective with more time and consideration. One suggestion was to limit the RDZ to a smaller geographical area with the option to expand if it proves to be a success.
However, a recommendation must be made to council by March 3 after Pedersen offered planning officials 30 days for discussion.
While commissioners disagree that the zoning code is to blame for a lack of development, suggesting the high property values as the cause, they’ve said a compromise could be reached with more communication from city leaders, businesses and developers.
“If there’s something wrong with the zoning we need to understand what it is so that we can adjust it and we can work on it,” Commissioner Zeb Thomas said. “Nobody has been able to articulate that to us.”
Since the ordinance was introduced to commissioners in January, they’ve taken issue with city leaders failing to communicate their objective to the group or host a workshop effectively discussing ideas moving forward.
Pedersen asserted planning has all the information it needs to make a decision, with two City Council meetings - one on Dec. 5 and the other on Jan. 14 - held where the proposal was discussed. Pedersen also appeared at the commission’s Feb. 4 meeting by request.
Bethune added she met with planning Chairman Bill Pritchard following Tuesday’s meeting. While she disagreed with the claim there’s a lack of dialogue, she agreed both entities could do a better job of working together, stating the plan going forward is to handle matters in a more collaborative and cohesive manner.
“When we had what we called workshops with City Council, we sat around a table with them and talked to them,” said Commissioner Sally Howard, adding that the dialogue has shifted over the years with the meeting format now based on presentations instead of conversation.
“I think an issue like this we need to request we have a sit-down and talk facts and talk about our concerns and give examples,” Howard said. “I think we’re looking at it so much deeper than what any council members would be.”
Next Steps
While planning has already indicted it will likely deny the proposal, it will have to provide its recommendation to council at a March 3 meeting in which a public hearing will be held.
Planning has discussed placing provisions in its recommendation to suggest council hold off on passing second reading until a committee is formed to thoroughly analyze any existing zoning issues. Commissioners also feel it will give them the time to speak with council members and developers to find a compromise.
But Pedersen alluded the proposal will move forward to council despite commission’s recommendation unless an objection is raised that he hasn’t already considered that would force staff to reconvene.
“I haven’t heard any suggestions or concerns so far that I thought were reasons to stop this proposal and I haven’t heard anything that wouldn’t be a positive step forward,” Pedersen said. “My recommendation right now is to go forward with it.”
