Tag: impact fees

SC General Assembly Must Amend Impact Fee Law to Allow Local Government Freedom

Horry County Council is again wrestling with the question of how to raise impact fees to help offset the cost of providing needed infrastructure to serve the ever-increasing number of new homes being built in the county.
While county council investigates to increase impact fees, the state enabling legislation governing those fees provides the largest hurdle to overcome.
In 1999, the General Assembly passed legislation governing the imposition of impact fees by local governments with enough restrictions and obstacles to make them virtually unworkable for local government use. The development industry launched a huge lobbying effort against the law and was generally successful in making the law extremely difficult for local governments to use.
The legislation dictates how the local governments must use the money and in what time frame it must be used. It also requires commercial structures to be treated the same as homes with respect to taxing, something that makes impact fees on commercial structures an excessive burden.
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Postal Way Rezonings Back on Council Agenda with No Changes from Three Months Ago

Horry County Council will consider second reading and hold public input on the two controversial rezonings along Postal Way at its regular meeting tomorrow night.
The two parcels of land, Waters Tract and Chatham Crossing, will add 1,654 new residential units and some new commercial development in an already crowded area.
The rezonings were deferred for a period of 92 days at the request of council member Dennis DiSabato, ostensibly to see if criticisms of the rezonings, voiced by Carolina Forest residents, could be addressed in the development agreements associated with the projects.
According to the language in the development agreements, which will be considered for second reading, nothing has changed in either development agreement from what was presented to council three months ago.
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Increase Fees on New Residential Construction or No Reelection?

Two years ago, Horry County Council imposed impact fees on new construction for the first time in county history. Two years prior to the impact fee ordinance, 72% of county voters had said YES to impact fees in an advisory referendum.
During the first two readings of the impact fee ordinance, the maximum possible fee of $6,645 per single family home was passed with other types of construction also being charged the maximum fee allowed by state law formula.
On third reading, then council member Johnny Vaught amended the ordinance to reduce the fee by 81.4% to a rate of $1,236 per single family home. Seven other council members joined Vaught in bowing to pressure from the development lobby to make the fee nominal. Those same eight council members voted to increase property taxes that same year by 7.5 mills, the maximum allowed by state law formula. Five of those eight council members will be up for reelection next year. Two others have already been replaced on council.
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Cabal Candidates Continue to Ignore History and Promote their Own Version of Political Reality

The longer this campaign season goes on, the more outrageous the misrepresentation from the developer and tourism cabal candidates about their records become, demonstrating their total disregard for the voters they claim to want to represent.
Actually, the only voters cabal candidates really want to represent are the ones funding their campaigns with large amounts of cash. Those voters, of course, are not sufficient in number to get any candidate elected, hence the necessity to roll out the lies about themselves and/or their opponents.
The tendency of cabal candidates to create new history was on full display during an event held at the North Myrtle Beach Chamber of Commerce last week.
Five candidates attended the event. Incumbent county council member for Horry County District 1 Harold Worley and his opponent Jenna Dukes. For county chairman were incumbent Chairman Johnny Gardner, Mark Lazarus and Johnny Vaught. Each candidate was given five minutes to speak about the issues.
Gardner and Worley have been especially targeted for defeat by the cabal.

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Lazarus Campaign Kickoff Attempts to Rewrite History

Mark Lazarus officially kicked off his campaign to recapture the chairmanship of Horry County Council Thursday night surrounded by his friends – Myrtle Beach Chamber and Grand Strand Business Alliance members as well as other members of the local cabal.
From the talking point clips and quotes attributed to Lazarus in local media over the last several days, it is obvious Lazarus is trying to rewrite the history of his years as chairman from 2013-2018.
Lazarus pledged to get county government ‘back on track’ when the only track it has left was the autocracy track the Lazarus years led it down toward funding I-73 and other initiatives to benefit special interests.
The most comical quote I have seen attributed to Lazarus is his promise of “investing in police services”, something he absolutely refused to do when chairman. There was a reason the police and fire organizations of Horry County endorsed current Chairman Johnny Gardner four years ago, in his run against Lazarus, and it wasn’t because Lazarus did anything to improve their lives.
The most memorable quote by Lazarus in the 2018 campaign was when he called the public safety personnel of the county “Thugs” late in the campaign because they asked him difficult questions about how they were treated at a campaign event.
In fact, Lazarus was not popular with the county employees in general as he, in coordination with former administrator Chris Eldridge, treated county employees as ‘serfs’ subject to the whims of the ruling duo.

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Developers, I-73 and a Déjà Vu Lazarus Candidacy

Recently Horry County Council unanimously approved changes to development density allowed in the Commercial Forest Agriculture zoning classification and former county chairman Mark Lazarus began calling developers looking for support for another run at county chairman.
Lazarus, then the incumbent, lost the 2018 county chairman race to Johnny Gardner in what was one of the biggest upsets in Horry County political history. And he lost it on his own merits, or maybe demerits, is a better term.
Lazarus is the former chairman most allied with the development community in the history of county government. As chairman, Lazarus convinced county council to purchase approximately 3,700 acres of undevelopable wetlands in the Carolina Forest area, at a cost of approximately $12 million taxpayer dollars, paid to a well-known Richmond, Va. developer. The excuse was the county needed to establish a wetlands mitigation bank for future road projects.
Since leaving office on January 1, 2019, Lazarus has been busy lobbying council members for a number of re-zonings of CFA land, especially in the Hwy 90 area.
I don’t know if Lazarus believes he can alter the changes to CFA density if he wins back the county chairman seat, but, considering the unanimous vote by council to change CFA density allowance and continuing pressure from the citizens to reject questionable development, it is not possible that he can.
After Gardner took over the chairman seat, he was able to convince council to institute impact fees on new development to help pay for the cost of new infrastructure and other capital needs associated with that development. Following the discussion among council members during its last meeting, those fees will be expanded to transportation and stormwater impact fees in the coming fiscal year to help pay for much needed upgrades to roads such as 90, 905. 701 and 9 and associated flooding mitigation efforts.
Lazarus preferred to raise property taxes and existing county fees, including leading the passage of the largest single property tax increase in county history in 2015, rather than promote an impact fee law counter to the wishes of his donors and supporters in the development community.

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County Council Guts Impact Fee Ordinance Before Final Passage

Horry County Council gave unanimous approval to third reading of an ordinance establishing impact fees on new construction but only after voting to reduce the fees by 81.5% before final passage.
To those who haven’t followed the issue closely, the reduction to only a nominal fee that will be charged may seem an action in the best traditions of a conservative council.
BUT IT’S NOT!
In fact, it is a huge victory for special interests to the detriment of average taxpayers in the county.
What eight members of council really voted for was to cave-in to the wishes of the development lobby while ignoring the wishes of the taxpayers.
The development lobby was successful in defeating attempts to impose impact fees at least twice in the last 15 years. After county voters supported instituting impact fees to help pay the cost of new development by a 72% vote in 2018, it was obvious some type of bone had to be thrown to voters this time around.
The question is not whether the explosive development the county is currently experiencing is going to increase the need for new or improved roads, new stormwater infrastructure, new fire stations, new parks and so on. Rather the question is who is going to pay for these improvements of basic needs.
Eight members of council, Johnny Vaught, Dennis DiSabato, Danny Hardee, Mark Causey, Orton Bellamy, Bill Howard, Cam Crawford and Gary Loftus voted to extend those costs to every taxpayer in the county rather than limit the charge to those causing the increase – namely owners of new construction whether private homes or commercial.
Council Chairman Johnny Gardner, and members Harold Worley and Tyler Servant voted against the amendments gutting impact fees and for the wishes of the voters as expressed in the referendum.
New single-family homes will be the class of construction that will generate the greatest proportion of the new fees. The first two readings of the impact fee ordinance passed with a fee amount of $6,645 per single-family home with other types of construction, multi-family, retail, hotel for example, having maximum fees imposed in accordance with state law.
Tuesday night the eight council members named above amended the ordinance to remove impact fees for road and stormwater infrastructure from the ordinance thereby reducing the fee for single-family homes from $6,645 per home to $1,236 per home.
But the costs for new and improved road and stormwater infrastructure to serve the new developments throughout the county won’t go away just because council removed those portions of the fee from the ordinance.

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Crunch Time for County Council and Impact Fees

Tuesday night Horry County Council will vote on third reading of an ordinance to impose impact fees on new construction in the unincorporated areas of the county.
Two and one-half years ago, nearly 75% of the voters said yes to an advisory referendum question asking whether county council should establish impact fees in the county.
Despite passing the first two readings unanimously, third reading passage of the ordinance is not assured.
On the table at third reading of the ordinance is imposition of an impact fee of approximately $6,600 for new single-family homes and varying impact fees for other types of new construction depending on the type.
Numerous sources have told me over the past two weeks the pressure on council members from the development lobby to water down the bill or kill it completely has been intense.
That lobby, composed of large landowners, builders and their associated sub-contractors and the real estate sales industry is pushing the message that impact fees will cause a significant slowdown in construction costing jobs and seriously impacting the local economy as well as making it more difficult in recruiting new businesses to the area.
The real reason for the opposition to impact fees is the builders do not want to pay $6.600 more out of their pockets each time they receive a new building permit. Developers will recover that money when the house is sold because the cost of impact fees will be passed on to the new homeowner, but they don’t want to float that sum for the few months between start of construction and sale in today’s market.
The impact fee will add approximately 2.5% to the cost of the average new home in Horry County. Prices on new homes have risen considerably more than that in the past year simply through market forces of supply and demand and sales of new homes have not slowed down because of the increasing price.
Impact fees in Horry County are not a new concept. Grand Strand Water and Sewer Authority has been collecting impact fees for a number of years. The statement in the county’s Imagine 2040 master plan explaining those fees is simple, “GSWSA collects water and wastewater capacity fees (impact fees) from new customers so that the current customer base does not bear the burden of new growth for both water and wastewater improvements.”
The development lobby used its same arguments when GSWSA imposed impact fees. Those arguments were totally false then and remain totally false now. One only has to drive around the county and view all the new construction projects in various stages of completion to see how false the argument is. GSWSA impact fees have not impacted new construction one iota.

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County Impact Fees Pass Unanimous Second Reading

Horry County Council is one step closer to imposing impact fees on new construction in the unincorporated areas of the county after unanimously passing second reading of an ordinance establishing those fees Tuesday night.
This is at least the fourth time in the past two decades that impact fees have been discussed by council. In the past, the development lobby has been successful in shutting down impact fees discussions before the issue got too far along in the legislative process.
Circumstances are different this time. Construction, especially of single-family homes, is red hot in the county and gives no signs of slowing down in the immediate future. Similar homes in similar type developments that were being advertised at mid-100s to high-100s last year are now being advertised in the mid-200s. That is approximately $250,000 for the average single-family home being constructed presently in a subdivision.
Some of that increase is due to the cost of building materials which have gone up by as much as four times in the case of lumber over the last 12 months. But profits for the developers have also been rising as the demand for new housing in the county continues to outpace the supply.
During past discussions, developers have been successful with the argument that impact fees would significantly increase the cost of a new home, driving down demand thereby causing high unemployment among the construction industry workers.
That argument does not hold water at this time even though it is being tried again and appears to have a sympathetic ear from a few council members.
Council member Dennis DiSabato attempted unsuccessfully to delay second reading of the ordinance by calling for a new committee to study the issue further. Council member Harold Worley, the most vocal supporter of impact fees during the discussion, said a vote to delay was a “kill pill” and the time had come to vote the ordinance up or down.
Council member Cam Crawford was more vocal and animated during the impact fee discussion than he has been in total in all the other council meetings and discussions over his nearly six years on council. Crawford’s voice and facial expressions clearly demonstrated his distaste for impact fees (or at least the distaste of those who have his ear).
In the end, however, neither DiSabato nor Crawford nor any other member of council voted against the ordinance.

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Gagging of Al Allen Points to Deeper Issues in County

Last week’s premature adjournment of the county council meeting in order to gag council member Al Allen’s requested discussion of county legal fees allowed deeper issues inside the government and county to come to the surface.
A simple request from Allen for county legal fees paid to outside attorneys has been blown up into a supposed politically motivated conspiracy, according to a report in a local media outlet. Two “county officials” speaking on conditions of anonymity, according to the story, put forth a theory alleging a plot to fire County Administrator Steve Gosnell and County Attorney Arrigo Carotti was the reason for Allen’s request.
And make no mistake, the information Allen requested and which was ultimately provided to Allen, other council members (although many of those other members saw the information well before it was produced to Allen) and the media is definitely public information.
According to statements in local media, County Attorney Arrigo Carotti brought Allen’s request for the information on legal fees to council member Johnny Vaught. The excuse Vaught gave to the media was Carotti did that because the legal department budget falls within the oversight of the county Administration Committee of which Vaught is chairman.
Vaught told media he had concern that county legal strategies could be discussed and he didn’t want that sensitive information to become public. I would submit that type of information is already public.
If someone wants to assess legal strategy in any lawsuit, they can go online to the judicial records to read the complaint, response, motions and responses, depositions and view the exhibits associated with the case. All of that information becomes open to the public the minute it is filed with the court. A person is going to gain a lot more information about legal strategy from those documents than from records of how much in legal fees was paid and to whom it was paid.
Vaught’s entire premise that he was attempting to protect privileged information is ridiculous. But the ensuing rhetoric which evolved around the issue and the players involved point to deeper intent.
The real story is the one involving those who said the information requested by Allen should not be released publicly and who created a false narrative in an attempt to publicly embarrass Allen and, later, council Chairman Johnny Gardner.

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