‘Public smear campaign’: Superblock businesses sue Myrtle Beach over alleged harassment
Myrtle Beach officials harassed two downtown bars by sending in police in full riot gear and finding bogus code violations, a new lawsuit alleges.
This week, the owners and companies behind Natalie’s Bar & Grill and Ibiza Club and Hooka Lounge filed suit against the city, the Myrtle Beach Downtown Development Corp., David Sebok and John Pedersen. It’s one of two lawsuits filed this week in Horry County against Myrtle Beach over superblock properties.
Natalie’s Bar & Grill and Ibiza Club and Hooka Lounge were part of the superblock in Myrtle Beach, roughly the area around Broadway, Oak Street and 8th Avenue North. City officials have long talked about developing that stretch and bought properties in the area.
According to the suit, the two bars obtained licenses that let them sell alcohol inside the businesses. But, the suit alleges, the city put up roadblocks to potential property improvements and harassed the businesses almost daily.
Some of the harassment was limiting the space that could be used without justification, sending inspectors daily to issue “bogus” code violations and requiring unnecessary HVAC units, the lawsuit alleges.
The businesses claim they spent more than $600,000 to improve property.
In 2016, the city used its police force to create a “public smear campaign” against the bars, the suit claims.
The filing states that harassment included officers in full tactical gear entering and asking the patrons questions, police parking outside the businesses for hours without explanation, city inspectors making daily visits and refusing to provide sanitation measures in the area.
Police and inspector actions were so the city could buy the business’ property, the suit claims.
In November 2016, the city declared Natalie’s Bar and Grill a nuisance, the filing states. The city cited a crime that happened at another property in its rationale, the lawsuit contends. The owners appealed the nuisance claim, but the city bought the property while the appeal was pending.
The owners – who are both minorities – also claim the city met with two owners who were white and said officials did not intend to take their properties. This was done while telling the minority owners they planned on buying the properties in the superblock, the suit says.
The lawsuit argues several claims against the city such as it unlawfully took the businesses and there was no due process. The bars ask for an unspecified amount of damages.
The suit is similar to one filed in November where Pure Ultra Club, which is also in the superblock, says city officials harassed patrons until the club’s business license was revoked. The city in response says its actions were justified as part its enforcement duties. That lawsuit has moved to federal court where it remains active.
In a separate case, Michael Hobeika and JB& HM Enterprises, Inc. filed suit against the city. Hobeika owned property in the superblock.
Myrtle Beach started a campaign of “open hostility” to minority business owners in the superblock in 2016, the suit says. The purpose was to lower property values so the city could buy them at a discount.
In 2017, city officials said they would use eminent domain to seize several properties, according to the filing. After the Myrtle Beach Downtown Redevelopment Corp. bought the properties, it allowed “blight” to decrease the value of the remaining properties, the suit contends.
The harassment and the blight reduced the value of Hobeika’s property so much that no will purchase it except for the city, he claims.
Myrtle Beach Spokesman Mark Kruea said the city does not typically comment on pending litigation.
This story was originally published March 27, 2019 at 10:09 AM.
