Gov. McMaster planning to commit at least $300M to I-73 in Myrtle Beach. What to know
South Carolina Gov. Henry McMaster plans to visit Myrtle Beach on Monday to announce that he would like to commit $300 million, or possibly more, to Interstate 73, according to multiple sources.
McMaster plans to visit, along with South Carolina Dept. of Transportation Secretary Christy Hall, the Myrtle Beach Area Chamber of Commerce’s headquarters and make “an exciting announcement...regarding Interstate 73,” according to an invitation sent to local lawmakers and others, which The Sun News obtained a copy of.
State Sen. Stephen Goldfinch (R-Murrells Inlet) told The Sun News on Thursday that he expects McMaster to commit at least $300 million, and possibly up to $350 million, to I-73, figures he said he expects the governor to announce Monday.
Goldfinch said he had asked McMaster for $500 million for I-73, and advised him that if was willing to fund Interstate 26 in Columbia, he ought to fund I-73 at a similar rate.
“What I’ve said to him is I don’t think it would be good to allocate less to I-73 than he did to I-26,” Goldfinch said. “I would think they’re (planning to announce) $320 million or $350 million.”
Other state lawmakers in Horry County’s delegation confirmed that McMaster is expected to announce a commitment of at least $300 million.
“I’ve heard that number,” said state Rep. Case Brittain (R-Myrtle Beach). “I think $300 million is probably likely based on the rumors I’ve heard.”
Brittain said, though, that he would await McMaster’s announcement of a final figure.
Other sources, too, including two county officials, confirmed that they had heard McMaster may commit $300 million to I-73.
“I’ve heard that too but I don’t know how official that is,” said County Council member Dennis DiSabato, who represents part of Myrtle Beach and part of Carolina Forest.
Karen Riordan, the president and CEO of the Myrtle Beach Area Chamber of Commerce, confirmed that she’d had a conversation with McMaster’s staff about his visit and that the governor plans to “discuss a significant investment” into I-73.
“I’m confident and hopeful that it’s good news,” she said. “If it was bad news, I’m not sure if he’d be paying a visit to the Grand Strand.”
Brian Symmes, a spokesperson for McMaster, confirmed the governor’s Monday visit to Myrtle Beach and said McMaster plans to “reiterate his long-standing commitment to the project.” He said he couldn’t comment on other specifics of the announcement.
Goldfinch added that he hopes to see South Carolina eventually contribute $500 million to I-73, and that he expects the state to reach that figure in coming years.
“If they come with $350 million or $300 million on Monday I would think the state owes another $150 million or $200 million to I-73,” he said. “I expect us to continue to have enough money (in the state budget). I think we’ll be able to find another $200 million in state funds, cobbled together in some form or fashion.”
Goldfinch added: “I think you’re likely to see more money come from the state at some point in time, probably in the next fiscal year if I had to guess. Listen, I’m always hopeful for federal money, but I’m never holding my breath.”
A major commitment
McMaster committing $300 million or more to I-73 would be one of the most significant steps forward the project has taken to date. In recent weeks, local leaders have begun discussing committing $250 million to I-73 out of local budgets, with Horry County, Myrtle Beach and North Myrtle Beach contributing a proportionate share. Proponents of I-73 hope to raise $200 to $250 million from the local governments, $500 million from South Carolina and the rest of the project’s cost from the federal government.
Administrative officials from the three municipalities met Wednesday to discuss what the specific commitment from each might be.
DiSabato, on the county level, has proposed using $4.2 million annually for 30 years from the county’s 1.5% hospitality fee funds to contribute to I-73. The hospitality fee is a sales tax collected on hotel stays, restaurant meals and event tickets, and DiSabato’s plan would spend roughly one-third of the county’s annual collection of that tax on I-73.
North Myrtle Beach leaders, too, have discussed using its share of the 1.5% hospitality fee to contribute to I-73, though the city hasn’t reached a specific figure yet, said Mayor Marilyn Hatley. Hatley said the state government and local governments working to contribute money to I-73 represents a “positive step” for the project. Hatley said the governor’s staff informed her of his visit, and said the governor plans to announce funding for I-73.
“I was told by his office that he was going to be here and he is going to talk about funding he has come up with that he hopes will pass the legislature that we’ll be able to use for I-73,” Hatley said. “It is a very positive step, we need the state to make a commitment and it will be good news for the Grand Strand.”
Interstate 73 has been planned for decades as a highway that could one day connect the Upper Peninsula of Michigan to Myrtle Beach, running through Michigan, Ohio, West Virginia, Virginia, North Carolina and South Carolina. While other portions of the roadway have not made any recent progress, Horry County and South Carolina leaders have been pushing to fund and build South Carolina’s Southern leg of I-73, which would run from Interstate 95, near Latta and Dillon, in between Marion and Mullins, in between Aynor and Loris, and end at Highway 22 just North of Conway.
SCDOT has estimated that portion of the road could cost between $1.2 and $1.5 billion, though the Coastal Conservation League, which has challenged I-73’s environmental permits in court, estimates the road could cost $3.8 billion.
Proponents of I-73, including the Chamber of Commerce and some local lawmakers, say the new highway will provide an evacuation route to the Grand Strand in the case of a major storm, will help lure new industries to the area to boost and diversify the economy and will provide visitors with an easier path in and out when they vacation here.
Funding for I-73, though long discussed, is beginning to come together now because a federal judge recently uphelp key environmental permits the project will need to move forward. The Coastal Conservation League, an environmental advocacy group, had argued in court that the permits were out of date, and that the project would damage too many wetlands. With that lawsuit ending, state and local lawmakers have begun earnest discussions of how to come up with funding for the project.
Where I-73 funds will come from
It’s not yet clear what buckets of state money McMaster will pull from to fund I-73, though several sources said they expect at least part of the funding to come from South Carolina’s portion of the American Rescue Plan Act, a federal COVID-19 relief package enacted earlier this year. South Carolina is set to receive $8.8 billion from that package, and the federal government has said a portion of those funds can be used on roads and other infrastructure projects.
However, the federal rules set limits on how much Rescue Plan money can be used on those projects. AccelerateSC, a group McMaster created to help divvy up COVID-19 relief aid from the federal government, wrote in an August report that the state could use up to $453.5 million of its Rescue Plan funds for projects like I-73. In early September, McMaster announced that he would like to use $360 million of those funds to widen and improve Interstate 26, which runs through Columbia.
That may mean a contribution of $300 million or more to I-73 would include Rescue Plan funds, as well as other state funds. Lawmakers and other sources, though, said they weren’t sure what funds McMaster may pull together for I-73.
“I don’t know where the money is coming from, my guess would be from the Rescue Plan,” said state Rep. Tim McGinnis, who represents Carolina Forest.
Brittain echoed that sentiment.
“I understand (I-26) being moved up a little bit and hopefully there will be enough left over (for I-73),” he said.
Symmes, McMaster’s spokesperson, declined to comment on where funding for I-73 may come from.
Lawmakers and local leaders The Sun News interviewed on Thursday all said McMaster committing funding to I-73 represents a crucial step forward for the long-planned project.
“We’re closer now than we have been over the last 25 years,” DiSabato said.
Brittain said he could remember growing up and seeing signs that read “future I-73 corridor” along local roads, during an earlier iteration of the project. He said he’s happy to see the road moving forward and stressed that he’s most anxious to see Horry County get a better evacuation route in the event of a major storm or disaster.
“It’s always been present and it seems like with the lawsuit being gone, it seems that the stars are starting to align for I-73,” Brittain said. “How can you not be excited about (the evacuation route), when that part is getting closer to reality, where we can make things safer for our citizens here? That’s something to be proud of.”
This story was originally published September 30, 2021 at 12:44 PM.
