As MyrtleBeachSC News reported on August 22nd, Myrtle Beach Mayor Brenda Bethune made personal calls and inroads to SC elected leadership to attend an event she hosted.
Those invited included: House Speaker Murrell Smith, Ways and Means Chairman Bruce Bannister, Newton, Wm. Weston J., Chairman Judiciary, Bailey, William H. North Myrtle Beach Representative, Leber, Matthew W. “Matt”, McCravy, John R., III, Wooten, Chris, Bill Herbkersman, Caskey, Micajah P. “Micah”, IV, among many others.
While Heather Ammons and U.S. Congressman Russell Fry were in attendance, the event was called disappointing by several representatives we spoke with. *A quorom of Myrtle Beach City Council was in attendance.
The event was held at Winna’s Kitchen with Mayor Bethune paying for the elegant display of food out of her own pocket.
While her reasons were not publicly stated, Mayor Bethune has been attempting to secure a $10 million tax handout from SC elected leadership for the Arts and Innovation district and other areas downtown. The showcase event was her opportunity to make a presentation to the leaders, who were largely staying in the northend of Myrtle Beach for a leadership conference.
Most of the SC elected leadership invited are considered fiscal and social conservatives. Mayor Bethune has a reputation as being the most liberal mayor in S.C. Her push for D.E.I. initiatives, child transgender surgeries, and government sponsored capitalism were likely reasons for these officials keeping their distance during an election cycle culminating November 5th.
SC Elected Leadership – One concern
A new theater for CCU in downtown Myrtle Beach is receiving over $22 million in funding. The objective is to obtain state and federal tax credits of at least $4.9 million. The funding is sourced from a nonprofit organization called Myrtle Beach Downtown Redevelopment Corporation, which is connected to a complex network of private LLCs.
Is Myrtle Beach running a shadow government?
Will other cities in the state adopt these financing methods for state handouts if S.C. Speaker Murrell Smith and the General Assembly permit such questionable historic tax credits funding? Is this practice legally permissible?
Politicians, nonprofit professionals, and state workers in Columbia appear surprised when posed basic inquiries about the framework. MyrtleBeachSC News contacted state lawmakers throughout the state, all of whom viewed this innovative funding method with suspicion.
Historic Tax Credits
Taxpayers in South Carolina can claim a credit for qualified rehabilitation expenditures (QREs) on certified historic structures as defined in Code section 47. If claiming the federal credit, the credit is 10% of QREs. If not eligible for the federal Historic Tax Credit (HTC), the credit is 25% of QREs, with a maximum cap of $1 million.
The credit must be taken in three equal installments over three years and can be carried forward for up to five years. Partnerships have the flexibility to allocate the entire credit or unused carryforward to any partner who was a member or partner at any time during the year, as agreed upon by the partners or members. Additional 25% credits are available for former mills or abandoned buildings.
City governments do not have the right to historic tax credits, therefore, the City of Myrtle Beach acquired the property using the Downtown Redevelopment Corporation, which consists mainly of city employees.
- This article has been updated to note that a quorum of Myrtle Beach City Council attended. Our original article posted that all city council members attended.