Local Governments Settle Lawsuit Regarding Former Myrtle Beach Air Force Base
By official action of their respective governing bodies, Horry County (County), the School District of Horry County (District), the City of Myrtle Beach (City), and the Myrtle Beach Air Force Base Redevelopment Authority (RDA), agreed Tuesday to settle a pending action in state court concerning the incremental tax revenues collected within the tax increment financing district (TIF District) established in 1994 by executive order of the Governor at the former Myrtle Beach Air Force Base.
The lawsuit, brought in 2018 by the County and District against the City and the RDA, challenged certain aspects of redevelopment project spending and sought a determination that redevelopment of the former Base is complete, along with dissolution of the TIF District. The City and the RDA disputed the allegations of the lawsuit and counterclaimed for damages associated with a canceled bond offering.
Under the terms of the Settlement Agreement, the parties have agreed to begin winding up the TIF District, targeting retirement of the existing bonded indebtedness and dissolution of the TIF District in the Fall of 2028. Between now and dissolution, the parties have agreed to the completion of an additional 13 specified new projects within the TIF District, at a cost of no more than $28.5 million, and the RDA has agreed to declare an estimated annual surplus distribution of $6 million to be divided among the County, the District, and the City. The parties have agreed to work together to ensure that all parties have a comfort level with redevelopment expenditures from now until dissolution.
“We are pleased to reach common ground on the resolution of this lawsuit and will continue to work together to bring the successful redevelopment of the Myrtle Beach Air Force Base to a close in the near future.”
Upon execution of the Settlement Agreement by the parties, the pending lawsuit, including all claims and counterclaims, will be dismissed with prejudice. The settlement does not admit liability on the part of any of the parties in the lawsuit. No further statements regarding the settlement will be issued by any of the parties.