It’s in the taxpayers’ best interest to settle the lawsuit involving HCS, others
Through the close of 2019, four public agencies spent more than half a million dollars in legal fees litigating an inter-governmental conflict over redevelopment of the former Myrtle Beach Air Force Base. The more than $500,000 was revealed by multiple open records requests from The Sun News.
Clearly it’s a case of taxpayer money not being used as well as it should be.
The city of Myrtle Beach and the Myrtle Beach Air Force Base Redevelopment Authority are on one side of the lawsuit as the defendants; the plaintiffs, Horry County government and Horry County Schools, brought the legal action in December 2018.
The lawsuit is another example of the city and county governments being at odds; unfortunately, this inability to work together, particularly over the Myrtle Beach International Airport, has a long history.
The two governments do cooperate on a majority of matters, but the lawsuit is not the only litigation between the city and county governments.
The plaintiffs contend the city and the authority are misusing tax increment financing on a project already completed, and the area in dispute includes The Market Common.
Assessed value, on which property taxes are collected, has grown from approximately $4.2 million in 2004 — when a tax increment financing district was established — to more than $38.2 million in December 2018 (when is when the suit was filed).
Property taxes have been frozen since the establishment of the tax increment financing district.
Attorneys for the city and authority claim in court documents that the suit has no merit and that the plaintiffs are looking to delay a court decision until the city’s ability to issue bonds expires on Dec. 13, 2020.
The defendants asked the trial judge to dismiss the suit.
In March, Judge Carmen Mullen denied the defendants’ motion and they appealed to the SC Supreme Court. Chief Justice Donald Beatty this month denied the appeal, which sends the case back to Judge Mullen.
School board chairman Ken Richardson says the chief justice’s ruling is a “big win” for the children of Horry County. At the heart of the case, from the school board’s point of view, is an initially promised $20 million new building that was removed from plans.
In court, the city has claimed there are not enough children in the area at issue to warrant a school.
“If they’d give us the money for the school, we’d be more than happy to settle this thing,” Richardson told The Sun News. “It’s not about suing Myrtle Beach. It’s about doing right by the school children.”
And, we should add, their taxpaying parents and all Horry County taxpayers.
We are not taking any position on the legal points; the chief justice of South Carolina found no reason to dismiss, upholding the trial court.
Three of the parties to the case — county, city, school district — have elected leaders; Richardson, like the Horry County Council Chairman Johnny Gardner, is elected countywide.
Other members are elected from 11 districts.
All governments are in a financial squeeze because of loss of revenue as the coronavirus pandemic continues. Across the state and nation, city and county employees face possible layoffs; some area municipalities already have taken that painful action.
It is clear that reaching a settlement on this inter-governmental litigation must be a priority of all the public, tax-supported parties.