Myrtle Beach leaders support tax breaks for $40M residence hall project

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.

Currently, the eight-acre parcel along Mr. Joe White Avenue is barely generating any revenues for the city, so even the below-market revenues will turn a profit.

“Our options here are not to do this, continue to collect less money than I have in my wallet per year in taxes, or we can do this, collect $50,000, and have a safe place for J-1 students,” councilman Gregg Smith said.

The complex would be specifically for J-1 students– a “non-immigrant visa that allows eligible international candidates to travel and gain experience in the United States by participating in work- and study-based programs,” according to a National Immigration Forum definition.

Since 2018, Myrtle Beach has hosted 8,528 participants through the J-1 program, but it can be hard for to find safe, affordable housing on a seasonal basis.

The ordinance needs a formal second reading and vote before becoming official — a move expected to come next month.

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Adam Benson joined the News13 digital team in January 2024. He is a veteran South Carolina reporter with previous stops at the Greenwood Index-Journal, Post & Courier and The Sun News in Myrtle Beach. Adam is a Boston native and University of Utah graduate. Follow Adam on X, formerly Twitter, at @AdamNewshound12 . See more of his work here .

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