MYRTLE BEACH, S.C. (WBTW) — Myrtle Beach leaders are backing a rarely-used series of tax breaks to ensure construction of a $40 million international residence hall they say is essential for city’s economic stability.
“It’s important we provide the J-1 students a safe place to live so that they can go back and tell their friends what a great experience they had here and bring other quality workers to the area,” Mayor Brenda Bethune said at a Tuesday council meeting.
The city council unanimously backed an incentive package that sets a 30-year property tax rate of at least 273.2 mills and an additional perk offering tax credits of between 50% and 75% for 20 years.
Without the agreements in place, IRH’s $40 million investment would contribute $200,000 worth of annual property tax revenues to the city.
Instead, Myrtle Beach will collect $50,000 a year for the first five years, $100,000 annually in years six through 20 and $200,000 a year after that.
Assistant City Manager Brian Tucker said without the credits, Wisconsin-based developer Holtz Builders likely would walk away from the deal.