Entities Unsure How Much Has Been Spent So Far

The FAA granted about $16 million to Horry County, SC for expansion of the Myrtle Beach International Airport terminal. But, plans came to a screeching halt last week when the volunteer Community Appearance Board issued a surprising and bitter rejection.

As of Wednesday, the FAA said it was unsure how much of its funding, if any, Horry County might have to repay due to the unusual and unexpected decision of the board.

As ANN reported, the Community Appearance Board rejected the new $229 million terminal, expanding the existing seven gates to 14, after four months of intense workshops... that focused mainly on the building's physical appearance. Board members said a new terminal, planned for the west side of the runway, would have been too close to a residential development on the former Air Force Base next to the airport.

The county needs the Community Appearance Board's approval for building permits for the county-owned airport, which resides inside city limits.

Neither the agency or Horry County could not immediately say exactly how much has already been spent, but the estimate falls in the $8 million to $12 million range, according to Myrtle Beach's The Sun News. 

A warning letter arrived in Horry County Monday saying the agency may need to  recoup "some or all of the federal funds expended on this project" if the county deems the terminal a "dead issue" although any ground rules for reclaiming its funds remain unclear.

Councilman Harold Worley said the FAA should not be asking for the money back.

"We were partners," he said. "How could they agree and then come and say, 'We want our money back.'"

The heart of this issue here is the overall size of the project.

Scott Seritt, manager of the FAA's Atlanta airports district said most repayments are required after small-scale construction violations - not after millions of dollars have already gone into planning a 14-gate terminal.

Should the county be forced to repay the FAA, the money will come from airport coffers, which now reportedly hold about $12 million. Those funds come from airport passenger and landing fees that were being put aside for construction, Horry County Council Chairwoman Liz Gilland said.

"If we have to pay the FAA back, we have the cash to pay them back," she said adding that airport funds cannot, by law, be commingled with county tax money.

Any repayments might hinge on the timeline of the board review, which began when the board first rejected the project in December and continued through the final board vote, Seritt said.

"At what point did we suspect this project was going to be voted down by the Community Appearance Board, was that $1 million ago or was it $5 million ago?" he said. "In a reasonable, prudent process, would we have stopped three months ago?"

According to Horry County Attorney John Weaver, the county spent about $350,000 trying to appease the CAB with terminal redesigns since they first rejected the project in December.  It is still unclear whether that additional spending will be paid with any FAA funds. New designs and months of additional engineering work ultimately failed to influence the board.

Airport accountant Pat Apone said FAA grants are spread out over years and can be divided between many areas, including costs that are unrelated to the terminal. Neither entity could immediately say with certainty what amounts might qualify for repayment.

So, the FAA is allowing Horry County time to decide whether the terminal project will ultimately live or die before it begins discussions on recouping grant money, Seritt said.

"It is too early to know what course or courses of action we might pursue," Gilland said. "Speaking for myself and, I'm sure, all members of the Horry County Council, in due time we will return to the question of air service for Horry County and assess our options."

"We really didn't want to put some arbitrary date on the county. We want to give the parties some time to talk," Seritt said. But the agency needs to know as soon as possible whether the county will be accepting another $6 million in grant funding it could receive this year for the terminal, he said.

"If we are not going to spend it in Myrtle Beach, we need to spend it somewhere else," he added.

FMI: www.myrtlebeachairport.com/