Multi-million dollar dorms for J-1 Visa holders have moved on to the next step.
Following a discussion with only one public question during the Myrtle Beach City Council meeting on Tuesday morning, council members unanimously decided to approve the first reading of a new ordinance that would allow the project to slash $150,000 off of their annual property taxes for the first five years.
“We’re being asked to consent to the agreement, but the authority to create the documents rests at the county level,” Assistant City Manager Brian Tucker said at Tuesday’s city council meeting.
The company that’s in charge of building the project, Holtz Builders Inc., is based out of Wisconsin.
Their president, Dan Bullock, said they’re still waiting on a couple more permits to be finalized before breaking ground on the new dorm-style building.
“It’s one of the top hosting communities for J-1 students,” he said about Myrtle Beach. “So, it’s just a good community for this sort of housing.”
Bullock said he’s unable to comment on whether or not they need the city to pass the property tax credit ordinance in order to begin construction on the project. He deferred The Sun News to another source who did not call back by publish time.
In the past, he said his company has helped build similar style buildings for Dollywood Resort employees in Pigeon Forge, Tennessee and water park workers in the Wisconsin Dells region.
Bullock said they hope to have the project in Myrtle Beach ready for the 2025 summer season.
According to data compiled by the U.S. Department of State, in 2023, the Myrtle Beach zip code 29577 was home to 1,300 J-1 Visa holders.
Original plans for the building said the complex would initially offer 380 beds, according to previous reporting.
Tuesday’s meeting agenda said the accommodations would be able to house up to 1,200 people employees participating in the J-1 Visa program.
“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 during the ordinance’s discussion on Tuesday.
The initial investment for the project will be around $40 million, according to the meeting’s agenda document. None of that money will be government money, city officials said.
Based on that number, without an ordinance passing, the project could generate approximately $200,000 in property taxes annually, according to numbers given to city council members.
If the ordinance ends up passing, that number would reduce to $50,000 a year over a five year period. After the five years are up, the taxes would double to $100,000 a year for years six through 20, and then would go up to the $200,000 rate, assuming there was no property appreciation after the 20 year mark.
During the meeting, council member Gregg Smith said that this ordinance would allow for the city to obtain an additional $50,000 in revenue compared to what they currently have.
“There’s no question this is something we definitely need,” Mayor Pro Tem Mike Lowder said at the meeting.
Lowder also brought up if their would be a time frame for when the rooms could be utilized by other people outside the busy summer season, including city and county employees, and construction workers.
“The thought here would be to take an asset that is under-utilized in the off-season and maybe creatively house again, temporary workers, construction workers and maybe city, county workers,” Tucker said in response. “The ordinance itself authorizes the Mayor and staff to execute future documents, and we can certainly negotiate or try to clarify or tighten up the language even before second reading.”
The second reading of the ordinance will take place at a future Myrtle Beach City Council meeting.
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