Did the city break the law in Mashburn Construction purchase?

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David Hucks
David Huckshttps://myrtlebeachsc.com
David Hucks is a 12th generation descendant of the area we now call Myrtle Beach, S.C. David attended Coastal Carolina University and like most of his family, has never left the area. David is the lead journalist at MyrtleBeachSC.com

Myrtle Beach residents continue to ask questions online as to whether the City of Myrtle Beach broke the law in selling the Superblock “taxpayer purchased” property at 807 North Kings Highway to Mashburn Construction.

Said local businesswoman Ann Dunham, “The city voted to sell [the property] to a construction company [Mashburn Construction] for an office in the new “Arts and Innovation” district. I was told, by the city manager, the city does not have sale procedures regarding selling city (taxpayer) property. They can sell to anyone at any price they choose,” wrote Dunham

Under South Carolina Code of Laws, Title 5 – Municipal Corporations SECTION 5-7-40. Ownership and disposition of property by municipalities states:

All municipalities of this State may own and possess property within and without their corporate limits, real, personal or mixed, without limitation, and may, by resolution of the council adopted at a public meeting and upon such terms and conditions as such council may deem advisable, sell, alien, convey, lease or otherwise dispose of personal property and in the case of a sale, alienation, conveyance, lease or other disposition of real or mixed property, such council action must be effected by ordinance.

By technical statute it appears the city did not break any state laws.


*The property will be financed by City of Myrtle Beach taxpayers.

*The property was never listed on the real estate MLS.

*No other offers were sought or accepted by the city.

*The property sold for twenty five percent less than another merchant offered.

*Mashburn Construction will use “Historic Credit” tax dollars, a tax subsidy, to improve the property once those credits become available in September.

*Mashburn Contruction has little out of pocket, “up front” investment money in the deal. Mashburn Construction is not funding the renovations of the deal. Historic tax credits will pay for those.

Lee Mashburn
Little upfront investment often indicates the level of commitment when times get hard

Mashburn, and Mashburn alone, qualified for this deal based a city policy strategy set by Myrtle Beach City Council and Mayor Brenda Bethune following the lead of the [MASC] Municipal Association of Cities.

MASC was labeled a fascist group by two S.C. State office holders this week. Read that here: https://myrtlebeachsc.com/citys-policy-of-re-engineering-private-property-rights-influenced-by-masc/

City Manager John Pedersen touts that city tax payers must invest first before outside investors will come on board.

Could City Manager Pedersen honestly call Mashburn Construction’s no money down investment “coming on board”?

The firm has little skin in the game. What happens to investors like these when times get tough. AND, FYI, times always do eventually get tough.

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