Myrtle Beach could go $370M in debt to pay for arts and innovation district projects
As Myrtle Beach moves forward with a vision to transform its downtown into a center for culture and commerce, it could take on hundreds of millions in debt to pay for the work.
According to city budget documents, more than a dozen projects planned for the arts and innovation district could be financed through more than $370 million in long term debt through 2028, although the figure may come down significantly as grants and private sector partnerships develop.
In the 2023-24 fiscal year that starts July 1, $17.4 million worth of activity is slated within the district — most notably redevelopment of the Main Street Mates store and two other connected buildings to open a 300-seat theater run in collaboration with Coastal Carolina University.
Historic tax credits will cover some of the costs, but it has $12.7 million price tag. City Manager Jonathan “Fox” Simons said at a June 6 budget workshop an agreement with CCU outlining its financial commitments for the theater should be finalized in the coming weeks.
Rounding out the funds set aside next year for arts and innovation district projects are:
- $2.21 million for a new downtown library campus
- $1 million for development of a Rails to Trails line
- $1 million for a new parking lot at the city’s historic train depot
- $400,000 to start a contingency fund for overall development costs
The city is already carrying nearly $165 million worth of long-term debt, with some payments running as far out as 2042.
With an Aa credit rating and stable outlook, Myrtle Beach can absorb $10.8 million worth of new debt by June 30 without direct voter approval.