The City of Myrtle Beach is refinancing previous bonds at lower interest rates while taking on debt to pay for arts and innovation infrastructure improvements and convention center renovations.
The City Council gave second and final approval to assume the $81 million bond on Tuesday, Oct. 22, in a 5-2 vote. Council members Mike Lowder and Bill McClure did not vote.
The bond will repay $40 million in previous bonds issued for improvements to the convention center. City Manager Fox Simmons likened it to refinancing a mortgage. City leaders argue that the interest rates on the bonds are now better than when they were originally issued, saving the city money on debt payments.
Simmons said the $81 million bond will be repaid using entertainment fees.
$20 million of that money will go towards renovations to the convention center, including repairing skylight leaks, facade renovations, ceiling tile replacement, carpeting and lighting.
An additional $16.5 million will go toward improvements to the Arts and Innovation District that will include increased stormwater treatment capacity, more parking, and improved intersections, along with improvements planned by SCDOT as part of the U.S. Highway 501 realignment project. It will be allocated.
“We’re basically piggybacking off of DOT,” Assistant City Manager Brian Tucker said at the meeting.
“I support what’s happening in the Arts and Innovation District 100 percent, but the fact that we’re putting the convention center in debt for something to happen downtown is problematic,” Roeder said. He said this while explaining his reasons for voting.
