Amendment to proposed surf park passes first reading at Myrtle Beach City Council

An amendment to the agreement involving a surf park in Myrtle Beach has been added to address revenue allocations.

The proposed amendment passed first reading, adding nearly 27 acres associated with the Wavegarden Project and establishing the distribution of revenue generated by the project.

PREVIOUSLY: Myrtle Beach City Council approves incentive agreement for $170M WaveGarden surf park

Myrtle Beach City Council previously approved an Incentive Agreement providing up to $20 million in financial incentives for the development of the Wavegarden Project after identifying several different city funding sources.

Under the proposed amendment, 70% of the revenues generated by the Wavegarden Project will be allocated toward reimbursement of eligible project costs or repayment of debt issued to finance the project.

The remaining 30% will be distributed among the City of Myrtle Beach (9.66%), Horry County (9.67%), Horry County School District (9.67%), Georgetown County (0.5%), and Marion County (0.5%), according to the amendment.

This would allow the city to be able to issue a special source revenue bond that’s tied directly to the fee if the project rather than property taxes.

The amendment passed its first reading at Horry County Council as well.

This would alleviate some of the obligation from the City of Myrtle Beach to pay the $20 million associated with the project.

The multi-county business park agreement allows the city to take out a special source revenue bond.

That bond does not go towards the city’s general obligation debt requirements. It is tied directly to the project and to the property itself.

If approved, there is no general obligation requirement or fund balance from the city.