Horry County needs to fund its I-73 segment and upgrades to Highway 90. Here are options.
With a lawsuit brought by an environmental group wrapped up and $8.8 billion in federal relief coming to South Carolina’s coffers, state lawmakers and leaders across the Grand Strand have begun planning for how to fund Interstate 73, a major highway that would give the region its first-ever interstate highway access.
Those talks could ultimately include plans for another major local road in need of significant upgrades — Highway 90 between Conway and North Myrtle Beach.
In recent weeks, even before the South Carolina Coastal Conservation League’s lawsuit against I-73 was dismissed by a federal judge, state lawmakers and leaders from Horry County, North Myrtle Beach and Myrtle Beach met to hash out a possible funding plan for getting the highway built. The Coastal Conservation League had sued arguing that federal permits awarded to I-73 should be reevaluated and that leaders should consider other road projects instead of I-73. The conservation league said I-73 could damage significant portions of streams and wetlands in the region, but a federal judge ruled against their claims last week.
The funding plan discussed, according to Horry County Council member Dennis DiSabato and North Myrtle Beach Mayor Marlyn Hatley, would have the local governments in the county collectively commit $250 million to I-73, in an effort to convince the state legislature to put $500 million from the state’s American Rescue Plan funds toward the project. State and local leaders would then lean on the federal government to cover the rest of project, which could total $1.5 billion or more. That would mean half of the project — roughly $750 million — was paid for by South Carolina and the local governments while the federal government paid the other $750 million.
Using money from its hospitality fee — a 1.5% sales tax charged on hotel stays, restaurant meals and event tickets — DiSabato said he hopes to see Horry County contribute $80 million, or about one-third of the total cost. To raise that $80 million, DiSabato said, the county might use $5 million from its annual hospitality fee collection (about $15 million in total), and sell bonds worth $80 million with those funds as the dedicated revenue to pay back the loan.
The county is currently planning to spend another $5 million annually from the hospitality fee on new public safety personnel and on several road projects including Highway 31 interchange in Carolina Forest that would connect Carolina Forest Boulevard and River Oaks Drive. The final third of that pot of money is simply dedicated to roads, but doesn’t have specific projects outlined yet.
Hatley, of North Myrtle Beach, said her city hasn’t yet landed on an amount it would be willing to commit to I-73, but said its possible the city may also use its hospitality fee funds to support the project.
Under state law, hospitality fee monies have to be spent on projects that support tourism. Applicable projects can include roads that would bring tourists into an area, police to patrol a tourist-heavy place or marketing material to lure tourists to visit.
Brenda Bethune, the mayor of Myrtle Beach, declined an interview request from The Sun News on Tuesday but said the city council is discussing a funding plan for I-73 and should have formalized plans “soon.” Bethune said the city has not yet committed to a specific dollar amount or source for the funds.
State lawmakers, including State Reps. Russell Fry, Heather Ammons-Crawford and Case Brittain, have told local leaders they hope to ask the legislature to appropriate funds for I-73 by the end of the month, DiSabato said.
Brittain (R-Myrtle Beach), the chairman of the National I-73/I-74/I-75 Corridor Association, confirmed on Tuesday that state lawmakers from Horry County would seek a state allocation for I-73 if local governments could kick in a share of the project’s funding, around $250 million. Fry (R-Surfside Beach) also confirmed that general funding plan being pursued by local governments, though said the money may come from the Rescue plan or could come from other sources.
Fry noted that, with a lawsuit over hospitality fee spending wrapped up, local governments in Horry County were back in a similar place they were several years ago, and in a strong position to get state funds for I-73.
“What this does is it allows the legislative delegation to go to bat for the area because there is a commitment from the local governments to this very important project,” he said.
Those types of commitments, to both state and the federal government, demonstrate local buy-in and can be pivotal when seeking additional funds.
Fry praised the local governments for being willing to put money toward the project.
“I think the biggest component is that the local governments have come together in a very proactive way to get this project done,” he said. “We were there several years ago and we seem to be back there again and so hats off to them for making this effort and focusing on ways to improve our connectivity, improve job opportunities in the county and improve hurricane evacuation.”
As currently planned, the Southern leg of I-73 would begin near Florence or Dillon at I-95, run in between Marion and Mullins, past Aynor, in between Conway and Loris, and connect with Highway 22 where it would terminate in between Myrtle Beach and North Myrtle Beach. The full length of I-73 would run from Northern Michigan, through Ohio, West Virginia, Virginia and North Carolina before reaching South Carolina.
After the federal judge dismissed the Coastal Conservation League’s lawsuit last week, attorney Catherine Wannamaker, who had represented the group, noted that finding funding for I-73 remained a significant hurdle. She suggested that local roads ought to take a priority for local governments.
“(N)othing in the court’s ruling solves the major hurdle facing I-73, which is the exorbitant projected cost and the lack of funding to pay for it,” she said. “This highway proposal remains a boondoggle while South Carolina’s roads and highways are in critical need of repair and upgrade, and that is where taxpayer money should be directed.”
Gov. Henry McMaster said earlier this year that he’d be willing to use coronavirus relief funds from President Joe Biden’s American Rescue Plan to help pay for I-73 but hasn’t yet committed to a specific dollar amount. Brian Symmes, a spokesperson for McMaster, didn’t respond to questions about that from The Sun News on Tuesday. McMaster last week said he wants to use $360 million of the federal aide money to widen I-26 between Charleston and Columbia. The state legislature will have the final say on how the relief money is spent.
Highway 90 Improvements
But as some Horry County leaders pursue funding I-73 with hospitality fee money, other council members, particularly those representing the Highway 90 corridor, may not be fully on board.
One of those council members, Johnny Vaught, said funding for widening and raising up Highway 90 — a 20-mile connector between Highway 501 Business in Conway to Robert Edge Parkway in North Myrtle Beach — may need to come from the hospitality fee if other sources aren’t available.
Vaught said funding for that project — about $500 million total — could come from the county’s COVID-19 relief aide, the hospitality fee, leftover funds from past road projects, or even other sources, but that the county needed to prioritize it if it was also going to prioritize I-73. He added nearly $200 million is needed for the most critical aspects
“I agree that we need I-73 but its really hard for me to face my voters and say we’re going to spend all these hundreds of millions on I-73 and we can’t put $200 million to ease congestion on Highway 90,” Vaught said.
Both Brittain and Fry said they see funding for road projects like Highway 90 and I-73 as equally important, and that local governments and state lawmakers could pursue a “both and” approach to getting local and state funds for those projects.
“I don’t feel like its an either or type situation, I feel like Highway 90 needs some attention as well,” Brittain said.
DiSabato said he’s hopeful the county can find the funds it needs for Highway 90 elsewhere in the budget and can use the hospitality fee funds for I-73, though he acknowledged that some council members will be “reluctant to spend money on infrastructure that doesn’t address Highway 90.”
“I feel good about the plan,” he said. “I don’t know where the rest of council stands on it.”
“We all acknowledge that Highway 90 is a problem,” DiSabato added.
DiSabato added that State Sen. Greg Hembree (R-Little River) may seek $100 million for Highway 90 from the state legislature, easing the county’s burden on that project. Hembree didn’t return a call requesting comment on Tuesday.
Horry County in coming years is also likely to expand its penny-sales-tax-for-road-projects program, called RIDE. The fourth iteration of that program could raise hundreds of millions of dollars the county could use for Highway 90 and other transportation needs.
Additionally, Hatley said, other municipalities in Horry County may wish to contribute funds to I-73, including Conway and Loris. Mayors of both cities have previously voiced support for I-73.
Sen. Lindsey Graham has also pledged to bring home $12 million for right-of-way land buying for I-73 as the project moves forward.
Put together, the Grand Strand could be looking at $2 billion in major road projects in coming years. Leaders say both are necessary.
DiSabato said I-73 is needed because its both an evacuation route during hurricanes for the Grand Strand, and could lure new businesses and industries to the area.
(It) gives our county the ability to attract diverse industries,” DiSabato said. “That will in turn increase our tax base and help keep Horry County talent in Horry County because they have a more robust workforce.”
Editor’s note: This story was updated with additional comments from SC Reps. Russell Fry and Case Brittain.
This story was originally published September 7, 2021 at 4:30 PM.
