Myrtle Beach continues to spend millions on empty lots and vacant buildings. Here’s why

Myrtle Beach is nearing the end of a $31 million spending spree that’s given it control of nearly two dozen properties in its oceanfront district — a prelude to large scale redevelopment in the city’s once thriving merchant area.

“We have been criticized for purchasing these properties without having a plan, but what I will say is when you see the landmass that this is, you know that something big is coming there, and will be transformational,” Mayor Brenda Bethune said at a Tuesday city council meeting.

The council then voted to buy two empty lots and a North Kings Highway motel for $3 million, bringing its total acquisitions to 23 properties since December 2021.

Roughly bounded from 14th Avenue S. to 22nd Ave N., the oceanfront corridor spent decades as a flourishing merchant and tourism hub for the city.

County land records and the state’s business license directory show all three are managed by holding companies run by Noam Pyade — a downtown landlord who previously sold the Fountainbleau Motel and Oasis Inn to the city for nearly $9.5 million.

The 708 N. Kings Highway lot is home to the White Sands Motel. Officials said Pyade agreed to sell the building to the city under the condition he can lease it for $2,500 a month for up to eight months.

Hindered by small lot sizes that couldn’t overcome zoning changes and development perks, the city started taking control of the district’s future itself by buying and then in some cases flattening blighted buildings, creating better pedestrian access and ultimately controlling future development, city officials have said.

The purchases started in December 2021 with a $15 million allocation to buy 10 properties: Three commercial sites and seven hotels.

Several of the parcels had a history of criminal activity that dissuaded private investment within the district, assistant city manager Brian Tucker has said previously.

“We have said publicly for the last 14 months we recognize the city of Myrtle Beach will have to take the lead in driving redevelopment in that area,” Tucker told the council on Tuesday. “The level of interest that we have already stoked has been exciting, and exciting’s a bit of an understatement.”

Tucker said the city has gotten cold calls from developers in Los Angeles, Miami and across the southeast who have taken notice of Myrtle Beach’s reclamation effort.

“We all recognized that we get one shot to do this really well, and we are committed to doing that. And when we do that, we’ll see the results we all anticipate.”

It’s not immediately known what plans the city has for any of the purchased lots. They’re being paid for via tax increment financing, which allows the use of anticipated property tax growth within a designated area to cover upfront costs.

Tucker said a master plan is being developed that should offer a blueprint for the area’s economic future.

“We felt like we had the opportunity to do two things, we could No. 1 drive out the bad activity and create the foundation to create positive activity, and I think we have done that,” Tucker said.

John Krajc, a real estate agent on the city council, said buying up small lots and other pieces of land that might not have any value on their own was actually a shrewd decision by Tucker and his team.

“This is really a big step. This almost completes the pie for these blocks, and if we were to not vote on this, really we would not have marketable a property for developers,” he said.