Myrtle Beach Economic Development Plan

Executive Summary
Myrtle Beach is a seaside resort community. It is a destination city and provides tourism services year-round. It has grown exponentially in recent years and is among the top growing cities in the country. It is in need of economic diversification, infrastructure updating and expansion, and job development.
It has benefitted from state tax-friendly codes but conservative politics could be an issue in enhancing the city’s profile and attempt to appeal to diverse populations. It has benefited from federal policies like FEMA and FHA, which provide emergency response and affordable housing funds.
A strategy to address its economic development needs include: 1) keeping taxes low, 2) offering tax-based incentives to attract business, 3) addressing zoning issues to separate commercial and industrial facilities in the downtown area, 4) applying FHA funds to provide affordable housing for residents in blighted areas, fixing up the blight, and attracting more investment, 5) increasing revenues for the city to update and expand infrastructure.
The expected outcomes of these interventions will be that the city is able to meet its development objectives and create a sustainable economic environment that allows diverse businesses to establish themselves in the city. By enhancing its tourism profits with other economic opportunities through profile enhancement and investment, the city can adequately address infrastructure needs.
The Community Profile
The City of Myrtle Beach, South Carolina, is one of the 13th fastest growing cities in the United States, according to 2000 Census figures (Myrtle Beach Housing and Community Development Consolidated Plan: Part 3, 2005, p. 1). With a growth rate of over 36%, Myrtle Beach is far outpacing the national average. Growth, however, has meant that land is in high demand and housing and infrastructure needs are also growing. As more members of the elderly community seek to settle in Myrtle Beach, owing to the community’s serene beach-side scenery and pleasant climate, along with the city’s year-round tourism, the city has experienced an increase in housing and land expenses.
Myrtle Beach is home to nearly 30,000 residents, who welcome tourists to their city year-round, offering their city as a full-service resort to those seeking a warmer climate and a beach-setting to relax and enjoy (City of Myrtle Beach Comprehensive Plan, 2011).
In order to build and develop and achieve the city’s potential, the Myrtle Beach Regional Economic Development Corporation (MBREDC) was founded. Its business is to facilitate economic development by obtaining investment for the region, enhancing the community’s profile as a “prime business location,” bringing entities and organizations together to strengthen business ties and accelerate economic growth, and diversifying the city’s economy so as to achieve sustainability (MBREDC, 2017).
The Specific Problem
The city’s infrastructure systems are over capacity and need to be expanded as growth continues. Existing neighborhoods have substandard infrastructure. The Central Business District (5-Points Downtown) is aged and land use is mixed (varying from commercial to industrial) which means retail and construction yards exist side-by-side—an unbecoming zoning environment that “is not conducive to the thriving, successful development that is needed to bring prosperity to the City’s blighted and underdeveloped commercial core” (Myrtle Beach Housing and Community Development Consolidated Plan: Part 5, 2005, p. 46).
The community also needs to diversify economically so that it can achieve sustainability going forward. If it keeps all of its eggs in one basket, so to speak, it risks losing the momentum it has achieved in recent decades. Likewise, if the community rests fully on tourism to support its infrastructure needs, it will not obtain the required funds to update and develop. The city must diversify by attracting new business, addressing zoning issues, and enhancing its profile and image so that it is seen as a place where businesses want to come to thrive.
State and Federal Public Policy
State and federal public policies that have impacted Myrtle Beach include being tax-friendly (a state policy) and safe (from Hurricane season) as well as conservative (though this is controversial, as shall be explained). The state of South Carolina has ensured that cities like Myrtle Beach are tax-friendly especially for its older population who seeks retirement without worry. To that end, Gigante (2013) notes that “this sunny southern belle levies no tax on Social Security and issues homeowners who are 55-plus a property tax break, allowing a local tax exemption on the first $50,000 of a property's fair market value.” What’s more is that “those 65 and older can also deduct up to $15,000 per spouse in qualifying retirement income, offset by other retirement deductions claimed. Absent any state inheritance or estate tax,” a retiree in Myrtle Beach could purchase a beachfront bungalow and live happily in a peaceful and sunny clime (Gigante, 2013).
Federal policy that impacts Myrtle Beach is related to FEMA and its response to Hurricane season, with its on-the-ground operations and federal aid that go to support people and places in need. Because Myrtle Beach is a coastal city, it is in danger every year from Hurricanes and Tropical Storms that barrel up the Atlantic. This year the U.S. has already been struck by two monster storms—Hurricane Harvey in Houston, and Hurricane Irma in Florida. FEMA is there to respond in every case along with the U.S. Coast Guard and other emergency crews. This is a serious and substantial support for a city like Myrtle Beach and provides a security blanket that ensures safety and orderliness in response to any devastation wrought by nature.
The city is also impacted by conservative public policies at the state level such as the controversial anti-transgender bill that has come up in South Carolina (Wilson, 2016). While some may view the bill as good, others condemn it—so the city will have to find a way to deal with divisive issues like this while appealing to diverse populations.
CED Intervention Strategies
Intervention strategies for achieving the economic development objectives of the city include:
· Boosting tourism by updating and enhancing the city’s profile
· To be achieved by re-branding the city for the 21st century, showcasing all it has to offer for multiple populations (elderly as well as young, business-minded as well as retired)
· Attracting new business to the region
· Investors in the city want to see a plan for development and growth so that they know their investments are safe. Offering tax incentives to investors and businesses can be a good way to show that there is good faith on the city’s end to keep investment coming, development booming, and growth stable
· Addressing zoning issues
· Separating commercial and industrial in the urban area will help make the city more attractive to retailers
· Addressing infrastructure needs
· The more investment that comes to the city, the more revenues the city can collect to update and expand infrastructure needs
· Provide housing for poverty-stricken populations through FHA support and move them out of blighted neighborhoods
· Update the blighted neighborhoods and attract more investment/business into the city
These measures will ensure a circle of success that will allow for the city to maintain its regeneration over time.
Expected Outcomes
An enhanced profile for the city will attract new investment and build up Myrtle Beach’s image among the community and among investors. It will be seen not just as a retirement community but also as a vibrant city where business and youth can come to take advantage of tax incentives.
New investment will lead to greater revenue: as the city focuses on diversity in both economic terms and demographic terms, it can appeal to a broader spectrum and enhance its overall profile, which will in turn boost appeal among investors and keep the cycle of investment and development going. Tax incentives will help bring in new businesses as well.
Greater revenue will lead to infrastructure expansion and development. By bringing new businesses to the area, especially in aerospace and technology industries, the city can expand on its tourism base and create new revenue streams which will allow for more development. Infrastructure development will allow for more funds to restore blighted communities and restoration will lead to more investment.
Zoning issues being addressed will make the downtown area still more appealing to commercial investment, and the city will appeal to more businesses and younger persons as a result, who are attracted to hip urban areas in cities that are well-defined and have a strong cultural backdrop.
Conclusion
Myrtle Beach is a seaside city that attracts tourists year-round. It is in a tax-friendly state and this can be used to draw new businesses to the community by way of offering tax incentives. This will help to create jobs and rejuvenate communities. The city is in need of economic diversification, infrastructure updating, profile enhancement and zoning amendments, so new investment in the city will help to address these issues as they are all mutually reinforcing. The city can continue to experience growth and development so long as it updates its appeal to a diverse population and by addressing issues like the state laws that are controversial and showing fidelity to all people of all persuasions, the city will stand out on its own and continue its growth.

References
City of Myrtle Beach Comprehensive Plan. (2011). Retrieved from
http://www.cityofmyrtlebeach.com/PDF%20Forms/ComprehensivePlan2011.pdf
Gigante, S. (2013). Taxes: The most and least friendly states for retirees. Retrieved
from https://www.today.com/money/taxes-most-least-friendly-states-retirees-8C10990277
MBREDC. (2017). Critical Importance. Retrieved from
http://www.mbredc.org/critical-importance/
Myrtle Beach Housing and Community Development Consolidated Plan: Part 3. (2005).
Retrieved from http://www.cityofmyrtlebeach.com/PDF%20Forms/Myrtle%20Beach%20Consolidated%20Plan%203.pdf
Myrtle Beach Housing and Community Development Consolidated Plan: Part 5. (2005).
Retrieved from http://www.cityofmyrtlebeach.com/PDF%20Forms/Myrtle%20Beach%20Consolidated%20Plan%205.pdf
Wilson, R. (2016). South Carolina’s new anti-transgender bill faces bipartisan criticism.
Retrieved from https://www.hrc.org/blog/south-carolinas-new-anti-transgender-bill-faces-bipartisan-criticism