RESULTS - January 12 Special Called City Council Meeting

January 12, 2015
FOR IMMEDIATE RELEASE
Contact: Pat Dowling, Public Information Officer (843) 280-5612 – office / (843)241-7480 – cell [email protected]
RESULTS: January 12 Special Called City Council Meeting
--Public Hearing on Cherry Grove Canals Project
set for February 21, 10:00 a.m. at City Hall
North Myrtle Beach, SC – During their January 12 special called meeting, the members
of the North Myrtle Beach City Council approved a Resolution describing the proposed Cherry
Grove Improvement District and Cherry Grove Improvement Plan and, the projected time
schedule for the accomplishment of the Cherry Grove Improvement Plan, the estimated cost of
the improvements, and the amount of such costs to be derived from assessments, bonds or other
funds.
The Resolution also sets forth the proposed basis and rates of assessments to be imposed within
the Cherry Grove Improvement District.
The Resolution also sets a public hearing on the proposed Improvement Plan—Cherry Grove
Improvement District for February 21, at 10:00 a.m., at North Myrtle Beach City Hall, 1018
Second Avenue South. At the public hearing, any interested person may be heard either in person
or by attorney on any matter connected with the stated purpose of the public hearing.
The Resolution and proposed Improvement Plan—Cherry Grove Improvement District
documents are available for viewing or downloading on the home page of www.nmb.us in the
“New and Noteworthy” section under the category, “Cherry Grove Canals Dredging Project.”
Those who wish to receive a copy of the documents by email may do so by contacting Public
Information Officer Pat Dowling at [email protected]. Copies are also available at City Hall.
The documents are also part of this news release.
City Council appointed Mary “Dee” Myers and Ron Bruce to the North Myrtle Beach Tree
City Board.
City Council appointed Nancy Duke (At Large) to the North Myrtle Beach Accommodations
Tax Committee.
Scroll down for Resolution and Improvement Plan—Cherry
Grove Improvement District documents
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH
MYRTLE BEACH, SOUTH CAROLINA, DESCRIBING THE CHERRY GROVE
IMPROVEMENT DISTRICT AND THE CHERRY GROVE IMPROVEMENT
PLAN TO BE EFFECTED THEREBY, THE PROJECTED TIME SCHEDULE
FOR THE ACCOMPLISHMENT OF THE CHERRY GROVE IMPROVEMENT
PLAN, THE ESTIMATED COST OF THE IMPROVEMENTS AND THE
AMOUNT OF SUCH COSTS TO BE DERIVED FROM ASSESSMENTS, BONDS,
OR OTHER FUNDS; SETTING FORTH THE PROPOSED BASIS AND RATES
OF ASSESSMENTS TO BE IMPOSED WITHIN THE CHERRY GROVE
IMPROVEMENT DISTRICT; ORDERING A PUBLIC HEARING; AND OTHER
MATTERS RELATING THERETO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH MYRTLE
BEACH, SOUTH CAROLINA, AS FOLLOWS:
Section 1.
Findings and Determinations.
The City Council (the “City Council”) of the City of North Myrtle Beach, South Carolina (the
“City”), hereby finds and determines:
(a)
The City is a municipality of the State of South Carolina (the “State”), and as such,
possesses certain powers granted by the Constitution and general laws of the State.
(b)
Pursuant to Title 5, Chapter 37, Code of Laws of South Carolina 1976, as amended (the
“Act”), the municipalities of the State are vested with all powers consistent with the Constitution
necessary, useful, and desirable to effect improvements within an improvement district, to increase
property values, to prevent depreciation of property values, and to preserve and increase their tax bases.
(c)
An “improvement plan” (within the meaning of Section 5-37-20(4) of the Act), entitled
“IMPROVEMENT PLAN--CHERRY GROVE IMPROVEMENT DISTRICT” (the “Improvement
Plan”) has been prepared and presented to the City Council, which Improvement Plan, among other
things, contemplates the creation of an “improvement district” (within the meaning of Section 5-37-20(3)
of the Act) to be known as the Cherry Grove Improvement District (the “Improvement District”). A copy
of the Improvement Plan is available for review at the office of the City Manager of the City, located at
1018 2nd Avenue South, North Myrtle Beach, South Carolina. The Improvement Plan contemplates the
improvements within the Improvement District as more particularly described herein (the
“Improvements”) which constitute “improvements” within the meaning of Section 5-37-20(2) of the Act.
The Improvements consist solely of the dredging of canals as described in S.C. Code Ann. §48-39130(D)(10) (1976, as amended) (herein, “Canals”). All of the Improvements are to be located within the
corporate limits of the City. None of the Improvements have been completed or are, as of the date of this
Resolution, under construction.
(d)
The City Council hereby finds and determines that the Improvements will be beneficial
within the Improvement District. The Improvements will provide to owners of property within the
District use of and navigation within the Canals at both low and high tides, thus increasing the utility of
an amenity within the District which is of particular interest to property owners and the usefulness of
which has diminished over time.
DM: 3850153 v.4
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(e)
The City Council hereby finds and determines that the Improvements will preserve or
increase property values within the Improvement District. The City Council, having consulted with
property valuation consultants, finds that properties in the Improvement District with direct water access
as will be provided by the Improvements will enjoy higher valuations than similarly situated properties
without such direct water access.
(f)
The City Council hereby finds and determines the Improvements are likely to encourage
development in the Improvement District in the form of renovations to or replacement of existing
structures within the Improvement District.
(g)
The City Council hereby finds and determines that the general welfare and tax base of the
City will be maintained or improved by the creation of the Improvement District.
(h)
The City Council hereby finds and determines that it would be fair and equitable to
finance a portion of the cost of the Improvements by an assessment upon the real property located within
the Improvement District. The City Council finds that the use of special assessments is particularly
appropriate in that similar parcels will be assessed identical amounts, and such amounts will not vary
based on the value of improvements on the property or the real property assessment ratio applicable to the
property.
(i)
Pursuant to the Act, the City Council may establish the Improvement District and
implement and finance the Improvement Plan in the Improvement District in accordance with the
provisions of the Act.
(j)
In accordance with the requirements of Section 5-35-60 of the Act, City Council hereby
directs and authorizes the publication of this resolution and the establishment of the time and place of a
public hearing concerning the Improvement Plan.
It is now necessary and in the best interest of the health, safety, and general welfare of the citizens
of the City that the Improvement District and Improvement Plan be described and the other requirements
of the Act be met through adoption and publication of this resolution.
Section 2.
Description of Improvement District.
The Improvement District will consist of approximately 761 parcels of real property, including
those parcels shown on Exhibit A hereto, along with property owned by the City and canals and
marshlands owned by the State of South Carolina (the “State”). The Improvement District is generally
bounded by Lake Drive and Nixon Street to the South, Heritage Drive, marshlands and a channel of water
referred to as the “Major Channel” to the north and east, and 42nd Street North to the west.
Section 3.
Description of Plan.
The Improvement Plan sets forth the overall plan by which the City proposes to effect the
Improvements within the Improvement District . As provided in the Improvement Plan, an initial dredge
of Canals is planned to occur during the autumn of 2015 and winter of 2016. A subsequent dredge, as
required for maintenance of the Canals within the Improvement District is planned for the autumn of 2020
and winter of 2021, but may be rescheduled based upon actual conditions in the Canals.
The dredge plan has been permitted by the U.S. Army Corps of Engineers, permit number SAC2004-02988-3II (the “Permit”). The dredge is designed to improve the water depth in canals abutting
parcels located within the Improvement District. The narrower “finger canals” running perpendicular to
DM: 3850153 v.4
2
the shoreline are intended to be dredged with a 24-foot-wide cut in the center of each such Canal,
providing water at low tide with a depth of three feet. The wider canal running mostly parallel to the
shoreline is intended to be dredged with a 34 foot-wide-cut, providing water at low tide with a depth of
three and one-half feet. Materials dredged from the Canals will be first processed at the Corps Horry
County Tidewater Confined Disposal Facility, and then disposed of permanently at a location to be
determined by the contractor hired to handle disposition. The City is also required to perform certain
environmental mitigation under the Permit.
The cost of the Improvements and all costs associated therewith, including planning and
engineering fees, other professional fees, costs of financing, environmental mitigation, and costs of
administration of the Improvement District are estimated to be $13,316,302, including projected inflation.
The City to date has expended in excess of $1,200,000 for preliminary costs associated with the creation
of the Improvement District and the execution of the Improvement Plan. The City expects to contribute
an additional $1,600,000 to limit the cost of the Improvements and related costs to be funded from
assessments. In order to finance the remaining cost of the Improvements, the City is considering the
issuance of obligations secured by and payable from Assessments (as defined in Section 6 herein) in one
or more series (herein, the “Bonds”) pursuant to the Act.
Section 4.
Improvement Plan Costs.
The cost of the Improvement Plan is more fully described therein, and includes the following
items:
Estimated, Inflated
Costs
Description
Initial Dredge
Dredging
Required mitigation efforts
Subtotal of initial dredge
$5,588,693
$1,033,486
$6,622,179
Second Dredge
Dredging
Required mitigation efforts
Subtotal of second dredge
$5,962,983
$0
$5,962,983
Total
Section 5.
$12,585,162
Amount of Cost of Improvements to be Derived from Bonds or Other Permitted Funding
Sources
In order to finance the cost of the Improvements, the City estimates that it will issue Bonds
pursuant to the Act to generate $10,985,162, the details of which shall be prescribed by one or more
separate ordinances of the City Council. Such estimates are subject to change based upon market
conditions and the negotiation of the terms upon which the Bonds may be issued. The City estimates that
it will utilize $1,600,000 of City funds for the Improvements and associated costs.
DM: 3850153 v.4
3
Section 6.
Imposition of Assessments; Basis for and Rates of Assessment to be Imposed Within the
Improvement District.
It is proposed that there shall be imposed “assessments” within the meaning of Section 5-37-20(1)
of the Act on all real property in the Improvement District, which property has been found by the City
Council to benefit from the Improvements (the “Assessments”).
The total of the Assessments imposed within the Improvement District shall equal the sum of (i)
the estimated principal amount of the Bonds to be issued and to which Assessments are to pledged, (ii)
interest on and ongoing expenses with respect to such Bonds, and (iii) administrative costs of the
Improvement District. It is expected that the aggregate annual billing of Assessments in the Improvement
District will not exceed $1,694,832. It is expected that the annual billing of the Assessments per parcel in
the Improvement District will not exceed $2,400 in any year.
The City Council has determined that Assessments will be imposed on a per parcel basis,
provided, however, that several classes of parcels will be designated, based upon certain common
characteristics of such parcels, as further described in this Section 6.
It is proposed that distinct classes of parcels will be created for parcels that either support a single
family unit (the vast majority) or support a multi-family unit(s) (including condominiums, duplexes, and
apartments). It is further proposed that the single family unit parcel class will have subclasses to
distinguish between standard parcels and parcels that can be subdivided such that two separate single
family units can be built (a “Double Lot”). It is further proposed that the Assessment on the standard
single family unit parcels will be $24,000, that the Assessment on the Double Lots will be $48,000 and
that the Assessment on the multi-family unit parcels will be $16,560. Additionally, it is proposed that the
maximum annual Assessment will be limited to ten percent of the total initial Assessment ($2,400 and
$1,656 respectively for the standard single family unit parcels and the multi-family unit parcels) and that
the annual Assessment for the Double Lots will equal the annual Assessment billed to the standard single
family unit parcels. It is further proposed that to the extent that a Double Lot is subdivided to create two
separate single family unit parcels, the total Assessment on the Double Lot will be apportioned and each
resulting parcel will thereafter be considered a standard single family unit parcel which may be billed a
maximum of $2,400 per year going forward (no retroactive billings).
Section 7. Public Hearing; Notice.
The City Council hereby establishes Saturday February 21, 2015 , as the date of the public
hearing to be held in accordance with the provisions of Section 5-37-50 of the Act. Such public hearing
shall be held at 10:00 a.m. on such date in the City Council Chambers, 1018 2nd Avenue South , North
Myrtle Beach, South Carolina. At the public hearing and at any adjournment of it, any interested person
may be heard either in person or by attorney on any matter in connection therewith.
Pursuant to Section 5-37-60 of the Act, the City Council hereby authorizes the publication of this
Resolution in its entirety once a week for two successive weeks in a newspaper of general circulation
within the City, with the final publication to occur not less than ten days prior to the public hearing.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
DM: 3850153 v.4
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THIS RESOLUTION SHALL BE EFFECTIVE IMMEDIATELY UPON ADOPTION.
DONE AS OF THIS 12th DAY OF JANUARY, 2015.
s/_____________________________________
Mayor, City of North Myrtle Beach, South Carolina
ATTEST:
s/__________________________ (Seal)
City Clerk
DM: 3850153 v.4
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EXHIBIT A
PARCELS SUBJECT TO INCLUSION IN THE CITY OF NORTH MYRTLE BEACH CHERRY
GROVE MUNICIPAL IMPROVEMENT DISTRICT
This list is subject to amendment prior to creation of the District. Does not include certain
public property which has not been assigned a tax map number.
(Parcel List Attached)
DM: 3850153 v.4
A-1
Exhibit A - Parcels with TMS Numbers in the Improvement District
TMS
TMS
1310004021
1311513008
1311503008
1311513009
1311503009
1311513010
1311503010
1311513011
1311503011
1311513012
1311503012
1311513013
1311503013
1311513014
1311503014
1311513015
1311504001
1311514001
1311504002
1311514002
1311504003
1311514003
1311504004
1311514004
1311504005
1311514005
1311504006
1311514006
1311504007
1311514007
1311504008
1311514008
1311504010
1311514009
1311504011
1311514010
1311504012
1311514011
1311504013
1311514012
1311504014
1311514013
1311505001
1311514014
1311505002
1311514015
1311505003
1311514016
1311505004
1311514017
1311505005
1311514018
1311505006
1311514019
1311511001
1311515001
1311511002
1311515002
1311511003
1311515003
1311511004
1311515004
1311511005
1311515005
1311511006
1311515006
1311511008
1311515007
1311512002
1311515008
1311512003
1311515009
1311512004
1311515010
1311512005
1311515011
1311512006
1311515012
1311512007
1311515014
1311512008
1311515015
1311512009
1311515019
1311512010
1311515020
1311513001
1311515021
1311513002
1311515022
1311513003
1311515023
1311513004
1311515024
1311513005
1311515025
1311513006
1311515026
1311513007
1311515027
TMS
1311515028
1311515029
1311515030
1311515031
1311515032
1311515033
1311515034
1311515035
1311515036
1311515037
1311516002
1311516003
1311516004
1311516005
1311516006
1311517001
1311517002
1311517003
1311517004
1311517005
1311517006
1311517007
1311517008
1311517009
1311517010
1311601001
1311602001
1311602002
1311602003
1311602004
1311602005
1311602006
1311602007
1311602008
1311602009
1311602010
1311602011
1311602012
1311602013
1311602014
1311602015
1311602016
1311602017
1311602018
1311602019
1311602020
1311602021
1311602022
1311605001
1311605002
TMS
1311605003
1311605004
1311605005
1311605006
1311605007
1311605008
1311605009
1311605010
1311605011
1311605012
1311605013
1311605014
1311605015
1311605016
1311605017
1311605018
1311605019
1311605027
1311605028
1450208009
1450208010
1450208011
1450208012
1450208013
1450208014
1450208016
1450208017
1450208018
1450208019
1450208020
1450208021
1450208065
1450208066
1450208067
1450208068
1450208069
1450208070
1450208071
1450208072
1450209002
1450209003
1450209004
1450209005
1450209006
1450209007
1450209008
1450209009
1450209010
1450214002
1450214003
TMS
1450214004
1450214005
1450214006
1450214007
1450214008
1450214009
1450214010
1450214011
1450214012
1450214013
1450214014
1450214015
1450214016
1450214017
1450214018
1450215001
1450215004
1450215005
1450215006
1450215007
1450215008
1450215009
1450215010
1450215011
1450215012
1450215013
1450215014
1450215015
1450215016
1450215017
1450215018
1450215019
1450215020
1450215021
1450215022
1450215023
1450215024
1450215025
1450215026
1450215027
1450215028
1450215029
1450215030
1450215031
1450215032
1450215033
1450215034
1450215035
1450215036
1450215037
TMS
1450215038
1450215039
1450215040
1450220001
1450220002
1450220003
1450220004
1450220005
1450220006
1450220007
1450220008
1450220009
1450220010
1450220011
1450220012
1450220013
1450220014
1450220015
1450220016
1450220017
1450220018
1450220019
1450220020
1450220021
1450220022
1450220023
1450220024
1450220025
1450220026
1450220027
1450220028
1450220029
1450220030
1450220031
1450220032
1450220033
1450220034
1450220035
1450220036
1450220037
1450220038
1450221001
1450221002
1450221003
1450221004
1450221005
1450221006
1450221007
1450221008
1450221009
TMS
1450221010
1450221011
1450221012
1450221013
1450221014
1450221015
1450221016
1450221017
1450221018
1450221019
1450221020
1450221021
1450221022
1450221023
1450221024
1450221025
1450221026
1450221028
1450221029
1450221030
1450221031
1450221032
1450221033
1450224002
1450224003
1450224004
1450224005
1450224006
1450224007
1450224008
1450224009
1450224010
1450224011
1450224012
1450224013
1450224014
1450224015
1450224016
1450224017
1450224018
1450224019
1450224020
1450224021
1450224022
1450315001
1450315002
1450315003
1450315004
1450315005
TMS
1450315006
1450315007
1450315008
1450315009
1450315010
1450315011
1450315012
1450315013
1450316001
1450316002
1450316003
1450316004
1450316005
1450316006
1450316007
1450316008
1450316009
1450316010
1450316011
1450316012
1450316013
1450316014
1450316015
1450316016
1450316017
1450317001
1450317002
1450317003
1450317004
1450317005
1450317006
1450317007
1450317008
1450317009
1450317010
1450317011
1450317012
1450317013
1450317014
1450317015
1450317016
1450317017
1450317018
1450317019
1450317020
1450317021
1450318001
1450318002
1450318003
TMS
1450318004
1450318005
1450318006
1450318007
1450318008
1450318009
1450318010
1450318011
1450318012
1450318013
1450318014
1450318015
1450318016
1450318017
1450318018
1450318019
1450318020
1450318021
1450318022
1450318023
1450318024
1450318025
1450319001
1450319002
1450319003
1450319004
1450319005
1450319006
1450319007
1450319008
1450319009
1450319010
1450319011
1450319012
1450319013
1450319014
1450319016
1450319017
1450319018
1450319019
1450319020
1450319021
1450319022
1450319023
1450319024
1450319025
1450319026
1450319027
1450319028
1450319029
TMS
1450319030
1450319031
1450319032
1450320001
1450320002
1450320003
1450320004
1450320005
1450320006
1450320007
1450320008
1450320009
1450320010
1450320011
1450320012
1450320013
1450320014
1450320015
1450320016
1450320017
1450320018
1450320019
1450320020
1450320021
1450320022
1450320023
1450320024
1450320025
1450320026
1450320027
1450320028
1450320029
1450320030
1450320031
1450320032
1450320033
1450320034
1450320035
1450321001
1450321002
1450321003
1450321004
1450321005
1450321006
1450321007
1450321008
1450321009
1450321010
1450321011
1450321012
TMS
1450321013
1450321014
1450321015
1450321016
1450321017
1450321018
1450321019
1450321020
1450321021
1450321022
1450321023
1450321024
1450321025
1450321026
1450321027
1450321028
1450321029
1450321030
1450321031
1450321032
1450321033
1450321034
1450321035
1450321036
1450321037
1450321038
1450321039
1450321040
1450321041
1450322001
1450322002
1450322003
1450322004
1450322005
1450322006
1450322007
1450322008
1450322009
1450322010
1450322011
1450322012
1450322013
1450322014
1450322015
1450322016
1450322017
1450322018
1450322019
1450322020
1450322021
TMS
1450322022
1450322023
1450322024
1450322025
1450322026
1450322027
1450322028
1450322029
1450322030
1450322031
1450322032
1450322033
1450322034
1450322035
1450322036
1450322037
1450322038
1450322039
1450322040
1450323001
1450323002
1450323003
1450323004
1450323005
1450323006
1450323007
1450323008
1450323009
1450323010
1450323011
1450323012
1450323013
1450323014
1450323015
1450323016
1450323017
1450323018
1450323019
1450323020
1450323021
1450323022
1450323023
1450323024
1450323025
1450323026
1450323027
1450323028
1450323029
1450323030
1450323031
TMS
1450323032
1450323033
1450323034
1450323035
1450323036
1450323037
1450323038
1450323039
1450323040
1450323041
1450323042
1450323043
1450323044
1450323045
1450323046
1450323047
1450323048
1450323050
1450324001
1450324002
1450324003
1450324004
1450324005
1450324006
1450324007
1450324008
1450324009
1450324010
1450324011
1450324012
1450324013
1450324014
1450324015
1450324016
1450324017
1450324018
1450324019
1450324020
1450324021
1450324022
1450324023
1450324024
1450324025
1450324026
1450324027
1450324028
1450324029
1450324030
1450324031
1450324032
TMS
1450324033
1450324034
1450324035
1450324036
1450324037
1450324038
1450324039
1450324040
1450324041
1450324042
1450324043
1450324044
1450324045
1450324046
1450324047
1450324048
1450324049
1450324050
1450325001
1450325002
1450325003
1450325004
1450325005
1450325006
1450325007
1450325008
1450325009
1450325010
1450325011
1450325012
1450325013
1450325014
1450325015
1450325016
1450325017
1450325018
1450325019
1450325020
1450325021
1450325022
1450325023
1450325024
1450325025
1450325026
1450325027
1450325028
1450325029
1450325030
1450325031
1450325032
TMS
1450325033
1450325034
1450325035
1450325036
1450325037
1450325038
1450325039
1450325040
1450325041
1450325042
1450325043
1450325044
1450325045
1450325046
1450326001
1450326002
1450326003
1450326004
1450326005
1450326006
1450326007
1450326008
1450326009
1450326010
1450326011
1450326012
1450326013
1450326014
1450327001
1450327002
1450327003
1450327004
1450327005
1450327006
1311505008
1311505009
1311505010
1311505011
1311505012
1311505013
1311505014
1311506001
1311506002
1311506003
1311506004
1311506005
1311506006
1311506007
1311508028
January 9, 2015
IMPROVEMENT PLAN
CHERRY GROVE IMPROVEMENT DISTRICT
Overview and Purpose
Pursuant to the Municipal Improvements Act of 1999 (S. C. Code Section 5-37-10, et seq. and
as amended from time to time, the "Act"), the City of North Myrtle Beach, South Carolina (the "City”)
is authorized to designate an area within the City within which an improvement plan is to be
accomplished. The Act defines an "Improvement Plan" as an overall plan by which the governing body
of the City proposes to effect public improvements within a designated area to preserve property
values, prevent deterioration of urban areas, and preserve the tax base of the municipality, and includes
an overall plan by which the governing body proposes to effect public improvements within an
improvement district in order to encourage and promote private and public development within the
improvement district. This document is written to meet the Act’s requirements for an Improvement
Plan, as defined therein.
As further described below, this Improvement Plan specifies the City’s intentions to undertake
the deepening of the Cherry Grove canals, in aid of navigation within the canals, and to engage in the
financing of the same. Through the execution of this Improvement Plan, including the deepening of the
Cherry Grove canals, the City intends to provide a special benefit to parcels of real property in the
Improvement District, to increase property values within the Improvement District, to encourage and
promote private and public development by future owners or other interested parties, and to improve the
tax base of the City.
Description of the Improvement District
The real property included within the Cherry Grove Improvement District (the “Improvement
District”) is located in the City. The Improvement District is generally bound by Lake Drive and Nixon
Street to the south, Heritage Drive, marshlands and a channel of water referred to as the Major Channel
to the north and east and 42nd Avenue North to the west. For further detail, a map of the Improvement
District is shown in Exhibit A and attached hereto.
The Improvement District includes a total of approximately 761 separate parcels of property,
including residential property, additional parcels that may not be built upon, public use real property
owned by the City, as well as canals, channels and marshes owned by the State of South Carolina. The
Improvement District is estimated to consist of approximately 415 gross acres.
A complete list of the parcels in the District with tax map identification numbers is shown on
Exhibit B.
Description and Estimated Costs of the Improvement
The sole purpose of the Improvement District, the assessments to be levied in the Improvement
District, and the borrowings with respect to the Improvement District are to implement and finance the
deepening of the Cherry Grove canals (referred to as “dredges” or “dredging activity” throughout
the remainder of this Improvement Plan) (collectively, the “Improvements”). The deepening of the
canals is needed on account of the present lack of navigability of the canals during much of the
1
January 9, 2015
day. The dredging activity has been designed to provide a minimum of three feet of water at mean
low water to allow for navigation by recreational watercraft at all times. The dredging activity is
expected to occur in two primary phases over the next eight years. Each phase will include various
tasks, including the collection of the dredge materials, the de-watering of the dredge materials, the
disposal of the dredge materials and various required mitigation efforts. The dredging activity will
occur on real property owned by the State of South Carolina. Distinct elements of the proposed
dredges are specified in the table below and described in more detail in the permit for the dredge
activity which is referenced below.
Table A
Improvements and Estimated Costs
Description
Estimated,
Inflated Costs
Initial Dredge
Dredging
Required mitigation efforts
Subtotal of initial dredge
$5,588,693
$1,033,486
$6,622,179
Second Dredge
Dredging
Required mitigation efforts
Subtotal of second dredge
$5,962,983
$0
$5,962,983
Total
$12,585,162
As indicated above, the City intends to provide a special benefit to parcels of real property
in the Improvement District, each of which has access to the canals, through the delivery of the
Improvements. The Improvements constitutes an “improvement” within the meaning of the Act.
The City intends to execute an initial dredge during the 2015-2016 winter months and to
execute a second dredge after the canals have experienced a significant amount of re-silting.
Engineers have estimated that the second dredge will need to occur approximately six years after
the initial dredge is complete, but have also indicated that the timing of when a second dredge will
be needed will depend on many variables. As such, the precise time for the anticipated second
dredge cannot be determined. Importantly, the City intends to accomplish a second dredge if
required to maintain navigability prior to the expiration of the existing dredge permit on September
30, 2023 (see following section).
Through the successful execution of this Improvement Plan, the City intends to re-establish
the original intent of the canals and thus re-create a public improvement with a viable long term
use. Due to the natural silting process of the canals, additional dredges (subsequent to the existing
permit period) are likely to be necessary to allow for the long term use of the canals. The City
intends to obtain additional dredging permits and to arrange for subsequent financings of additional
dredges to allow for the full utilization of the canals over the long term. The City may elect to use
subsequent Improvement Plans alone or in combination with other appropriate financing tools to
2
January 9, 2015
execute this goal.
As shown in the table above, the total estimated cost of the Improvements, including estimated
inflation, equals $12,585,162, including $6,622,179 for the initial dredge. The costs shown in Table B
are estimates only. As such, the actual costs are likely to vary from these estimates. The estimated
costs shown in Table A do not limit the amount that may be spent on the distinct components of
the dredges or the total that may be spent in the aggregate on the Improvements.
The precise cost of the distinct components of the dredge will not be known until contracts
are signed with providers of the services. In particular, the costs of the second dredge could vary
significantly from the estimates shown above. To the extent that the costs of the second dredge are
greater than the available sources of funding (detailed below), the second dredge may not occur.
Proceeds from borrowings described in this Improvement Plan (see below) and authorized
by the Act may be spent on any component of the Improvements.
A portion of the required mitigation efforts (as established by the United Stated Army Corp of
Engineer’s permit, as further described below) will be implemented outside of the Improvement
District. As a result of the permit requirement to provide this mitigation, this activity confers a benefit
upon the property inside the Improvement District and is thus necessary to make improvements within
the Improvement District effective for the benefit of property within the Improvement District.
Other public improvements not contemplated by this Improvement Plan may be constructed
within the Improvement District.
Government Approvals and Regulatory Agency Permits
As of the date of this Improvement Plan, the City has obtained the necessary permits to
execute this Improvement Plan, including a permit from the United States Army Corp of
Engineers, including the Department of the Army Permit #SAC-2004-02988-3II. The permit
application and permit are available upon request at the City offices at 1018 Second Avenue South,
North Myrtle Beach, South Carolina. This permit allows for dredging of the canals for navigation
purposes through September 30, 2023. As noted above, the City intends, on an ongoing basis, to
request additional permits from the United States Army Corp of Engineers with later termination
dates (beyond the current permit termination date) to allow for additional dredges, as needed.
Time Schedule for the Accomplishment of the Improvement Plan
The Improvements contemplated within this Improvement Plan is expected to be accomplished
in two primary phases (as described above) over approximately eight years, finishing within the time
period allowed by the current United States Army Corp of Engineers permit.
Source of Funds
The City anticipates that the funds required to construct the Improvements will be obtained
from available City funds and from expected City borrowings secured by special assessments, as
further explained below. The City estimates that its contribution of available funds will equal
approximately $800,000 for the initial dredge and approximately $800,000 for the second dredge.
The funding from the expected City borrowings secured by the special assessments, which will
3
January 9, 2015
provide the vast majority of the required funding, will be limited by the amount of the special
assessment lien placed on the residential properties in the District.
To fund a portion of the costs of the initial dredge, the City intends to execute an
assessment-secured borrowing for a term of approximately five years, thus matching the estimated
length of time before the second dredge will be needed. The City expects to fund the second dredge
with a second City assessment-secured borrowing. As noted above, the costs for the second dredge
could be greater than the available funds (including proceeds from the expected, second City
borrowing); if so, the City may be unable to accomplish the second dredge. The City, however, is
not limited to the use of special assessment financing to accomplish a second or subsequent dredge
and it may elect in its discretion to use other appropriate financing vehicles separately or in concert
with assessments.
The details of all borrowings and the authorization therefor shall be prescribed by one or
more separate ordinances of the City Council.
Repayment of Expected Borrowings
Pursuant to the Act, special assessments (the “Assessments”) will be imposed parcels of the real
property in the Improvement District, as further explained below. On an annual basis, a portion of the
total Assessments will be billed to the real property in the Improvement District in order to generate the
estimated amount required to pay the debt service on the borrowings and the administrative costs of the
Improvement District.
Basis and Rates of Assessment to be Imposed Within the Improvement District
Assessments shall be imposed upon real property in the Improvement District in accordance
with the Improvement District documents (including, without limitation, Report on the Reasonable
Basis of the Special Assessments, an Assessment Roll and the Rate and Method of Apportionment of
Assessments) to the extent such documents are approved by the City as required by law
(collectively the “Improvement District Documents”). The Improvement District Documents shall
establish Assessments and related special assessment rates that fairly and equitably allocate the
benefits derived from the Improvements to each of the individual parcels within the Improvement
District.
Assessments shall not be imposed upon the Improvements or any real property within the
Improvement District that does not receive a benefit from the Improvements. Assessments will not be
imposed on real property parcels within the Improvement District that are owned by a public entity.
Assessments will not be imposed on real property outside of the Improvement District.
The total amount of all Assessments to be imposed shall equal the anticipated costs of the
Improvements, net of the expected City contributions noted above, and including, without
limitation, the projected costs associated with the issuance and repayment of the anticipated City
borrowings (to be supported by the Assessments) and the projected administrative costs of the
Improvement District. As such, the Assessments will produce revenue sufficient to fund the
projected principal of and projected accrued interest on the expected borrowings described herein,
as well as projected administrative costs of the Improvement District.
4
January 9, 2015
The total Assessment on all real property within the Improvement District is projected to be
$16,016,278, as detailed below in Table B.
Table B
Projected Total Assessments
Principal
Interest
Administrative Costs
Total Assessments
$13,325,000
$2,372,060
$319,218
$16,016,278
Assessments will be allocated to the parcels of real property based upon each parcel’s
distinct development classification and such classification’s projected utilization of the
Improvements; development classifications will be established for single family residential units and
for multi-family units.
The Rate and Method of Apportionment of Assessments shall provide that as real property
within the Improvement District is subdivided, which is expected to occur only rarely, the Assessments
on the parent parcel will be allocated amongst the subdivided parcels in a manner consistent with the
original allocation methodology described in the paragraph above. The sum of the Assessments on the
subdivided parcels after such subdivision shall be equal to the Assessment of the parcel in question
prior to subdivision.
The Report on the Reasonable Basis of the Special Assessments shall establish and the Rate
and Method of Apportionment of Assessments shall record a maximum annual assessment rate of
$2,400 or less for a single family residential parcel, which shall correspond to a maximum annual
assessment rate of $1,656 or less for a multi-family residential parcel.
The total Assessment on each parcel, to be imposed through City Council’s approval of the
Improvement District Documents, shall represent the total special assessment fees that can be billed
to a parcel over the term of the Improvement District.
The City intends to begin the annual billing of the Assessments in the fall of 2015. The City
intends to bill the annual special assessment fee on the annual Horry County real property tax bill.
As noted above, the cost of the second dredge may prohibit the City from accomplishing a
second dredge. To the extent that the City determines that a second dredge will not occur, the
Assessments on the parcels in the District will be reduced (such that the Assessments reflect the
costs of the Improvement provided) and the annual billing of the Assessments will terminate once
the initial dredge has been fully paid for, including the retirement of a borrowing to fund the initial
dredge.
Amendments
This Improvement Plan may be amended or supplemented from time to time.
5
January 9, 2015
Exhibits A and Exhibit B on the following pages
Exhibit A – Map of the Improvement District
Exhibit B – List of parcels with tax map identification numbers in the Improvement District
6
O
VICT
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RIV E R
NECK
RD
MO
R
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JA CK
A TE
EW
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ND
BO
TL
N
RD
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SH
CL E
T ID
S CIR
N
ER
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LB
GI
BE N TLEY LN
IP E R
LN
ARS H
FD
EY ST
P
SA ND
RD
SL
CK
SB
LUF
OA K M
BU
ST
DR
AN
INL ET VIEW
CHESTE R RD
ST
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SS
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I
H C L EW
AL
O
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NA
IRC
F RIN KS CT
NO
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IO
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RD
P
LIT TL E
ST
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O ND
ON P
E
R DR
N
V
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TR
BA
AL
KE
E
N
LEY R D
LN
D
G
SH
FI
NA
EW
L L B LV
N
AN ST
P E LIC
R
W OS P
TABB Y LN
KI
E
W
AL
T
LET S
ST
E
IN
SE
VI
O N ST
E WI L
ND A
O
TA RP
JA M E S IS LA
W
EW
CURL
CH
E H ER
T
LE T S
W W IL
PI N
D ST
UR
ST
RON
U
SE A G
W HE
L LA R
CH
DR
MA
ST E
L LA RD
W MA
L
AL L S
RIA F
CAN
DR
EM U
P
S
TO
ST
HERITAGE DR
55TH AVE N
Major Channel
Minor Channel
62ND AVE N
61ST AVE N
60TH AVE N
59TH AVE N
56TH AVE N
55TH AVE N
54TH AVE N
53RD AVE N
52ND AVE N
51ST AVE N
57TH AVE N
58TH AVE N
44TH AVE N
EN
EXHIBIT A
CITY OF NORTH MYRTLE BEACH
CHERRY GROVE IMPROVEMENT DISTRICT
AV
N
N
38 TH AV E N
N OCEAN BLVD
NIXON ST
63R
D
49TH AVE N
48TH AVE N
47TH AVE N
46TH AVE N
43 RD AV E
N
42 ND AV E
E
AV
45TH AVE N
TH
39
LA KE DR
LAKE DR
50TH AVE N
CHANNEL ST
µ
Exhibit B - Parcels with TMS Numbers in the Improvement District
TMS
TMS
1310004021
1311513008
1311503008
1311513009
1311503009
1311513010
1311503010
1311513011
1311503011
1311513012
1311503012
1311513013
1311503013
1311513014
1311503014
1311513015
1311504001
1311514001
1311504002
1311514002
1311504003
1311514003
1311504004
1311514004
1311504005
1311514005
1311504006
1311514006
1311504007
1311514007
1311504008
1311514008
1311504010
1311514009
1311504011
1311514010
1311504012
1311514011
1311504013
1311514012
1311504014
1311514013
1311505001
1311514014
1311505002
1311514015
1311505003
1311514016
1311505004
1311514017
1311505005
1311514018
1311505006
1311514019
1311511001
1311515001
1311511002
1311515002
1311511003
1311515003
1311511004
1311515004
1311511005
1311515005
1311511006
1311515006
1311511008
1311515007
1311512002
1311515008
1311512003
1311515009
1311512004
1311515010
1311512005
1311515011
1311512006
1311515012
1311512007
1311515014
1311512008
1311515015
1311512009
1311515019
1311512010
1311515020
1311513001
1311515021
1311513002
1311515022
1311513003
1311515023
1311513004
1311515024
1311513005
1311515025
1311513006
1311515026
1311513007
1311515027
TMS
1311515028
1311515029
1311515030
1311515031
1311515032
1311515033
1311515034
1311515035
1311515036
1311515037
1311516002
1311516003
1311516004
1311516005
1311516006
1311517001
1311517002
1311517003
1311517004
1311517005
1311517006
1311517007
1311517008
1311517009
1311517010
1311601001
1311602001
1311602002
1311602003
1311602004
1311602005
1311602006
1311602007
1311602008
1311602009
1311602010
1311602011
1311602012
1311602013
1311602014
1311602015
1311602016
1311602017
1311602018
1311602019
1311602020
1311602021
1311602022
1311605001
1311605002
TMS
1311605003
1311605004
1311605005
1311605006
1311605007
1311605008
1311605009
1311605010
1311605011
1311605012
1311605013
1311605014
1311605015
1311605016
1311605017
1311605018
1311605019
1311605027
1311605028
1450208009
1450208010
1450208011
1450208012
1450208013
1450208014
1450208016
1450208017
1450208018
1450208019
1450208020
1450208021
1450208065
1450208066
1450208067
1450208068
1450208069
1450208070
1450208071
1450208072
1450209002
1450209003
1450209004
1450209005
1450209006
1450209007
1450209008
1450209009
1450209010
1450214002
1450214003
TMS
1450214004
1450214005
1450214006
1450214007
1450214008
1450214009
1450214010
1450214011
1450214012
1450214013
1450214014
1450214015
1450214016
1450214017
1450214018
1450215001
1450215004
1450215005
1450215006
1450215007
1450215008
1450215009
1450215010
1450215011
1450215012
1450215013
1450215014
1450215015
1450215016
1450215017
1450215018
1450215019
1450215020
1450215021
1450215022
1450215023
1450215024
1450215025
1450215026
1450215027
1450215028
1450215029
1450215030
1450215031
1450215032
1450215033
1450215034
1450215035
1450215036
1450215037
TMS
1450215038
1450215039
1450215040
1450220001
1450220002
1450220003
1450220004
1450220005
1450220006
1450220007
1450220008
1450220009
1450220010
1450220011
1450220012
1450220013
1450220014
1450220015
1450220016
1450220017
1450220018
1450220019
1450220020
1450220021
1450220022
1450220023
1450220024
1450220025
1450220026
1450220027
1450220028
1450220029
1450220030
1450220031
1450220032
1450220033
1450220034
1450220035
1450220036
1450220037
1450220038
1450221001
1450221002
1450221003
1450221004
1450221005
1450221006
1450221007
1450221008
1450221009
TMS
1450221010
1450221011
1450221012
1450221013
1450221014
1450221015
1450221016
1450221017
1450221018
1450221019
1450221020
1450221021
1450221022
1450221023
1450221024
1450221025
1450221026
1450221028
1450221029
1450221030
1450221031
1450221032
1450221033
1450224002
1450224003
1450224004
1450224005
1450224006
1450224007
1450224008
1450224009
1450224010
1450224011
1450224012
1450224013
1450224014
1450224015
1450224016
1450224017
1450224018
1450224019
1450224020
1450224021
1450224022
1450315001
1450315002
1450315003
1450315004
1450315005
TMS
1450315006
1450315007
1450315008
1450315009
1450315010
1450315011
1450315012
1450315013
1450316001
1450316002
1450316003
1450316004
1450316005
1450316006
1450316007
1450316008
1450316009
1450316010
1450316011
1450316012
1450316013
1450316014
1450316015
1450316016
1450316017
1450317001
1450317002
1450317003
1450317004
1450317005
1450317006
1450317007
1450317008
1450317009
1450317010
1450317011
1450317012
1450317013
1450317014
1450317015
1450317016
1450317017
1450317018
1450317019
1450317020
1450317021
1450318001
1450318002
1450318003
TMS
1450318004
1450318005
1450318006
1450318007
1450318008
1450318009
1450318010
1450318011
1450318012
1450318013
1450318014
1450318015
1450318016
1450318017
1450318018
1450318019
1450318020
1450318021
1450318022
1450318023
1450318024
1450318025
1450319001
1450319002
1450319003
1450319004
1450319005
1450319006
1450319007
1450319008
1450319009
1450319010
1450319011
1450319012
1450319013
1450319014
1450319016
1450319017
1450319018
1450319019
1450319020
1450319021
1450319022
1450319023
1450319024
1450319025
1450319026
1450319027
1450319028
1450319029
TMS
1450319030
1450319031
1450319032
1450320001
1450320002
1450320003
1450320004
1450320005
1450320006
1450320007
1450320008
1450320009
1450320010
1450320011
1450320012
1450320013
1450320014
1450320015
1450320016
1450320017
1450320018
1450320019
1450320020
1450320021
1450320022
1450320023
1450320024
1450320025
1450320026
1450320027
1450320028
1450320029
1450320030
1450320031
1450320032
1450320033
1450320034
1450320035
1450321001
1450321002
1450321003
1450321004
1450321005
1450321006
1450321007
1450321008
1450321009
1450321010
1450321011
1450321012
TMS
1450321013
1450321014
1450321015
1450321016
1450321017
1450321018
1450321019
1450321020
1450321021
1450321022
1450321023
1450321024
1450321025
1450321026
1450321027
1450321028
1450321029
1450321030
1450321031
1450321032
1450321033
1450321034
1450321035
1450321036
1450321037
1450321038
1450321039
1450321040
1450321041
1450322001
1450322002
1450322003
1450322004
1450322005
1450322006
1450322007
1450322008
1450322009
1450322010
1450322011
1450322012
1450322013
1450322014
1450322015
1450322016
1450322017
1450322018
1450322019
1450322020
1450322021
TMS
1450322022
1450322023
1450322024
1450322025
1450322026
1450322027
1450322028
1450322029
1450322030
1450322031
1450322032
1450322033
1450322034
1450322035
1450322036
1450322037
1450322038
1450322039
1450322040
1450323001
1450323002
1450323003
1450323004
1450323005
1450323006
1450323007
1450323008
1450323009
1450323010
1450323011
1450323012
1450323013
1450323014
1450323015
1450323016
1450323017
1450323018
1450323019
1450323020
1450323021
1450323022
1450323023
1450323024
1450323025
1450323026
1450323027
1450323028
1450323029
1450323030
1450323031
TMS
1450323032
1450323033
1450323034
1450323035
1450323036
1450323037
1450323038
1450323039
1450323040
1450323041
1450323042
1450323043
1450323044
1450323045
1450323046
1450323047
1450323048
1450323050
1450324001
1450324002
1450324003
1450324004
1450324005
1450324006
1450324007
1450324008
1450324009
1450324010
1450324011
1450324012
1450324013
1450324014
1450324015
1450324016
1450324017
1450324018
1450324019
1450324020
1450324021
1450324022
1450324023
1450324024
1450324025
1450324026
1450324027
1450324028
1450324029
1450324030
1450324031
1450324032
TMS
1450324033
1450324034
1450324035
1450324036
1450324037
1450324038
1450324039
1450324040
1450324041
1450324042
1450324043
1450324044
1450324045
1450324046
1450324047
1450324048
1450324049
1450324050
1450325001
1450325002
1450325003
1450325004
1450325005
1450325006
1450325007
1450325008
1450325009
1450325010
1450325011
1450325012
1450325013
1450325014
1450325015
1450325016
1450325017
1450325018
1450325019
1450325020
1450325021
1450325022
1450325023
1450325024
1450325025
1450325026
1450325027
1450325028
1450325029
1450325030
1450325031
1450325032
TMS
1450325033
1450325034
1450325035
1450325036
1450325037
1450325038
1450325039
1450325040
1450325041
1450325042
1450325043
1450325044
1450325045
1450325046
1450326001
1450326002
1450326003
1450326004
1450326005
1450326006
1450326007
1450326008
1450326009
1450326010
1450326011
1450326012
1450326013
1450326014
1450327001
1450327002
1450327003
1450327004
1450327005
1450327006
1311505008
1311505009
1311505010
1311505011
1311505012
1311505013
1311505014
1311506001
1311506002
1311506003
1311506004
1311506005
1311506006
1311506007
1311508028