FREQUENTLY ASKED QUESTIONS

Yes. The County will accept ownership of Legends Drive upon County Council approval after the third reading in September and prior to commencing improvements. Acceptance of the roadway is accomplished by a separate action from establishment of the Special Tax District (STD).

Can the construction project begin as soon as STD taxes are collected?

The collection of the STD taxes will begin in 2024. The planning phase of the project (survey / design) will begin after Council approval; bid advertisement / construction will follow the planning phase.

When will construction begin and how long should it take? Generally?

County will proceed as quickly as possible with the planning phase in the fall (design, bidding, surveys, etc.). Construction could potentially begin as early as January 2025 – but the actual start date will depend on construction project phasing and bids received (including contract terms / period of performance).

Will the County maintain Legends Drive from the time of deed conveyance until construction begins? This includes police patrol.

So as not to use STD funds for the interim maintenance, the County maintenance of Legends Drive will start once construction starts.

Until then, the Legends Drive Short Term Maintenance Fund may be used to repair potholes.

Confirm that the terms of the underlying Special Tax District petition apply, given that the Election question lacks specificity.

Yes. The provisions in the petition will apply.

* Confirm final STD mil rate.

The mill rate is capped at 16 mils based on the petition and referendum question. The County cannot raise the mil rate above 16 mils. The actual mil rate for any year is a function of the total assessed values and the STD cost. As of now, the assessed values of the properties within the STD boundaries have increased from 2023 to 2024 by over 20%. This increase is due primarily to both the quadrennial reassessment as well as the addition of new property and assessable transfer of interest (ATIs). Changes may occur before or after notices are mailed, such as deductions for applications for primary residence from new owners, disabled veteran exemptions, and valuation adjustments, which may impact the mil rate.

The STD estimated cost has not changed. The final STD cost will not be known until the project receives construction bids. The $2.4M estimated cost includes a 20% contingency to absorb potential additional costs if needed.

Per the petition, the mil rate cannot exceed 16 mils. The County recommends using a first-year mil rate of 13 mils that is reflective of the increased assessed value. Future years mil rate may be further reduced based on additional increases in assessed value from new construction and ATIs.

Below is an example of reassessment on a primary residence property with a $300k 2023 tax total appraised value, a 15% value increase, and the change in mil rate to 13.

Note: The BJ’s property will be added in the tax year following the year in which the certificate of occupancy is issued.

Revised

Assumes

2024 Max 15%

Original increase

Appraised Value $300,000 $345,000

Ratio 4% 4%

Assessed Value 12,000 13,800

Mil Rate 0.016 0.013

STD Tax $192 $179

Additional 2024 and future housing starts will be added at completion beginning in 2025 and thereafter to total assessed values for further mil rate favorable adjustments.

* When does property tax collection begin?

The STD millage be included on the 2024 property tax notices

* Assessed property values:

* 2024 Quadrennial values?

* When will property-specific values be available?

As of now, the aggregate assessed values of the STD properties have increased from 2023 to 2024 by over 20%. This increase is due primarily to both the quadrennial reassessment as well as the addition of new property and assessable transfer of interest (ATIs). Changes may occur before or after notices are mailed, such as deductions for applications for primary residence from new owners, disabled veteran exemptions and valuation adjustments, which may impact the mil rate. Assessment notices with property specific values are expected to be mailed to property owners within our STD boundaries beginning the week of July 8th.

* Confirm bond principal and term (also, confirm bond is not a taxable bond)

The bond term is anticipated to be 15 years and the bond principal will be set after a competitive proposal or bid process. This is general obligation debt of the STD, federal and SC tax exempt. The county’s other taxpayers do not guarantee this debt. Given the current assessed values, anticipated additional value growth from new construction, and assumed sufficiency of the construction estimate there’s reason to believe the debt will be repaid in 15 years.

* Confirm property owner’s financial responsibility is satisfied when bond is paid off.

Yes. Given the current assessed values and anticipated additional value growth from new construction, there’s reason to believe the debt will be repaid in 15 years or less. Once the debt is repaid, the STD can be terminated.

* Can grants be obtained in anticipation of title conveyed to the County, I.e., can we meet with State agencies before deed conveyance?

Application for grants from federal, state, and local funds can begin upon

County Council approval of the STD. For example, County Transportation Committee (CTC) funds. Any funding will help reduce cost to property owners.

* What happens if there is a cost overrun?

There can be a cost overrun which would increase the bond amount and annual debt service. The 20% STD construction contingency is available to cover additional costs. Assessed value growth from BJ’s and housing or commercial construction on vacant parcels would be available to fund cost increase if that occurs. Additionally, annual debt coverage ratio funds a 10% bond contingency reserve that is available to cover cost overruns or reduce the mil rate in a subsequent year.

Upon County Council approval of the STD, a five member Advisory Board made up of Legends Drive residents will be established to oversee the STD. These board members will be monitoring and recommending to County

Council during the entire process including but not limited to design, costs, loan payoff, and annual budgets including mil rate charged. These board members are our watchdogs, required by SC state law, to ensure the interest of the homeowners are protected.

• Will the County consider an on-site community meeting before Election?

No, the county will not be able to participate in an onsite meeting due to scheduling issues.

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Reasonable Interpretation of the County’s STD Responses

We've been asked to simplify the County responses for the Legends Drive special tax district, if the STD election is voted in by County Council. We can’t do that because those are their exact words, but the following is a reasonable interpretation of some of their responses:

The mill rate for 2024 has been reduced from 16 mils to 13 mils and the County expects further decreases.
By SC law, the rate cannot exceed 16 mils.
The County has the Young family deed and will accept ownership in 2024.
The construction project is to begin in 2024 and completed in 2025
All the terms of our STD Petition apply, as approved by the County Council on May 7th.
No other terms can be written into our STD Petition by the County.
Our STD property tax payments STOP when the bond is paid off.
Bond term is still set for 15 years. Any different term would void the STD if it resulted in a rate exceeding 16 mils, even though a shorter bond term would result in less cost to us.
Grants can be obtained to reduce our STD cost.
After the bond is set, there will be no cost overrun charged to us.
A cost overrun after the bond issuance is a County issue, not ours.
Individual property assessed values will be released to us beginning July 8th

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SPECIAL TAX

Q: WHAT IMPACT WILL A SPECIAL TAX DISTRICT (STD) HAVE ON ME?

A: 1. This is the only way everyone (all businesses and all residents) will pay something for the road. Also it will force the developers, LLCs, including LDY Properties LLC (e.g., Ailsa Pub) to shoulder more than a third of the cost.

2. According to several banks in the area, the increase in property taxes caused by the STD is so small compared to the amount of the mortgage it will have no impact on qualifying for a mortgage.

3. The STD will go away and your property tax will decrease after 15 years (less if there is more development, grants, business contributions and public funding).

4. How much your property tax will increase depends on the assessed value of your home. For a house appraised at $300,000 and assessed for $12,000, the estimated STD tax would be $192/yr or $16 per month.

To find how much you will pay, go to the Horry County Tax records website to find the assessed value for your home and multiple that number by an estimated 16 mils (0.016) Use either URL:

www.tinyurl/LegendsAssessment

https://horrycountytreasurer.qpaybill.com/

5. All of the money collected by the STD will be used exclusively for the improvement of the road. An oversight committee, with residents of the Legends Community as members of the committee, will make sure of that.

6. A small section of Legends Drive will not be part of the STD. Other entities are looking into the repair of the section of Legends Drive from Parkland Drive to the turnaround by the guardhouse

Q: WHAT HAPPENS WITH MORE DEVELOPMENT ON LEGENDS DRIVE:

A: The tax base rises and produces more tax. The additional tax pays off the bond earlier than 15 years.

Q: HOW DO WE KNOW THE STD WILL END IN 15 YEARS.?

A: A commission of five members of our community will be appointed by the County Council to adopt and submit an annual budget, and file an audited financial statement among other duties. •

Q: WHAT HAPPENS IN A COST OVER/UNDER-RUN?

A: An overrun is not charged to our community. An under-run is returned to the community.

Q: HOW DO WE KNOW OUR MONEY IS PROPERLY APPLIED?

A:We have a five member commission.

Q: IS THE COST TO THE HOMEOWNER BASED ON DISTANCE?

A: No, the same mil rate is applied to the assessed value of each property within the boundaries, residential and commerical.

Q: WHEN DOES THE MIL RATE BECOME FINAL?

A: Before the voting takes place.

Q: 2024 IS A REASSESSMENT YEAR. HOW WILL THAT CHANGE WHAT THE PROPOSED STD TAX WILL BE?

A: Bottom Line: the amount of Special Tax collected each year should remain fairly constant.
1. The reassessment of properties will not change the amount the county will have to borrow to improve the road.
2. Assessed value cannot increase more than 15 percent over a five-year period unless the property is sold.
3. The STD mil rate cannot increase, but it can decrease if assessed values rise significantly.

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ELECTION

Q: HOW MANY ELIGIBLE VOTERS?

A: Eligible voters are a moving target. Conservative estimate is 1,750. Has changed and will change again.

Q: HOW MANY VOTES TO PASS THE STD?

A: Over 50% of those that vote.

Q. WHAT IS THE PROCESS TO GET THE SPECIAL TAX DISTRICT?

A: There are a number of steps in order to get the County to own and maintain Legends Drive. We will have a petition drive among the communities. We need signatures of at least 15% of registered voters with addresses within the STD boundaries. These petitions will be sent to the county to be validated. Once this is completed, there will be hearings before the county council. The council must approve our request. If approved, there will be a special election, probably in a June or July timeframe. We need over 50% of those who vote to approve the Special Tax District. Followed by the county adopting an ordinance establishing a special tax district.

Q: WHAT HAPPENS AFTER THE PETITION IS FILED?

A: The county must validate the petition, hold hearings and authorize a vote for a special tax district.

Q: WHEN DOES THE MIL RATE BECOME FINAL?

A: Before the voting takes place.

Q. IF THERE IS AN ELECTION, WILL ABSENTEE VOTING BE AVAILABLE?

A: Yes, it is a 4 step process so get started early, you can even start now if you want.

See either URL:

https://tinyurl.com/absenteevoter29579

https://scvotes.gov/voters/absentee-voting/

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CONSTRUCTION

Q: WHO PROVIDES THE ENGINEERING?

A: Horry County Engineering Department handles all contractors.

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OWNERSHIP

Q. WHEN WILL LEGENDS DRIVE BECOME A PUBLIC ROAD?

A: According to our attorney, after a majority 'yes' vote and before anyone is billed for the first special tax payment.

Q. WHEN DOES COUNTY MAINTENANCE FOR THE POTHOLES BEGIN?

A: The county will own the road up front, so because it's their property they are responsible for maintenance.

Q. HOW MUCH WILL THE OWNER OF LEGENDS DRIVE BE PAID TO TRANSFER THE ROAD TO THE COUNTY?

A: The owner of the road (Legends Drive Holding LLC) has said, in writing, that they will give the road to the county whenever the county will take it, for no fee.

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DIFFERENCES FROM THE PROPOSED STD OF 2018

Q: HOW IS THIS STD DIFFERENT THAN THE ONE PROPOSED IN 2018?

A: This STD is different than the proposed STD in 2018. It has a slight change in boundaries and a significant reduction in the estimated mil rate as well as the following differences.

1. The mil rate will be fixed just before the vote to pass the STD, and it will never increase.

2. The county will take ownership before any increase in anyone’s property tax.

3. The county will be responsible for the maintenance of the road as soon as the STD goes into effect and will maintain it forever.

4. If the improvements cost more than originally thought, the extra cost will be borne by the county. It will not affect the STD. If the improvements cost less, then the extra monies will be distributed back to the property owners involved in the STD.

Q. WHY IS THE MIL RATE SO MUCH LOWER THAN THE PROPOSED STD OF 2018?

A: While the cost of fixing the road has increased from 2018, the assessed value of the properties (tax base) within the STD has increased even more. Also, the term of the STD was increased from 10 years to 15 years.

Q: WHY NO UTILITY PATH, LIGHTING AND RIGHT-HAND TURN LANE:

A: The county does not require it and not including it lowered the cost for each resident. The community cannot afford it at this time.

Q. WHEN WILL LEGENDS DRIVE BECOME A PUBLIC ROAD?

A: According to our attorney, after a majority 'yes' vote and before anyone is billed for the first special tax payment.

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ALTERNATIVES TO SPECIAL TAX

Legends Drive Committee Homeowner Presentation 10/13/2023

https://www.youtube.com/watch?v=5VmSZ9w1cIA

The STD is the only permanent solution available to us to fix Legends Drive.

Oct 13, 2023 Final Report of Legends Drive Committee

Q: CAN’T BUSINESSES COVER THE COST AND PASS IT ON TO CUSTOMERS?

A: If a business could charge more without impacting their bottom line, they would already be charging more.

Each business has its own economic and price elasticity. They decide if a cost can be passed through to their customers.

Q: WHY CANT WE JUST FILL POTHOLES?

A: The underbelly of the road needs to be fixed, which is producing the pot holes.

Q: THE ROAD DOESN’T LOOK THAT BAD.

A: It’s the underbelly of the road that needs work as well as the road asphalt.

Q: LEGENDS DRIVE IS OWNED BY SOMEONE ELSE, WHY SHOULD I PAY TO MAINTAIN IT?

A: An LLC is the owner, has no meaningful assets and will not maintain the road. Generally, users of a private road are responsible for its maintenance. Safety and endurance are primary reasons for maintaining a road.

Q: WHAT IF I’M PROTECTED BY A MAINTENANCE OBLIGATION HELD BY THE ROAD OWNER?

A: The protection is only as good as the ability of the road owner to perform the maintenance. Because the owner of the road is an LLC with no meaningful assets, and will not pay for maintenance, then the protection is an illusion.

Q: THE OWNER OF THE ROAD SIGNED AN AGREEMENT TO MAINTAIN THE ROAD. LET'S FORCE THE OWNER TO HONOR THE AGREEMENT.

A: Bottom line:

Suing the owner of Legends Drive (Legends Drive Holding LLC) would be expensive, be tied up in court for years, and ultimately would not fix the road. Ref: (Civil Action Number 2019-CP-26-01211) Lines 32a and 32b.

For all HOA/POAs above the guardhouse, that same maintenance agreement does not apply, and therefore there is no legal standing in court. Users (easement holders) of a road are proportionally responsible for its maintenance.

Q: WHY ARE “USERS” OF A ROAD RESPONSIBLE FOR MAINTENANCE?

A: That’s the common law in South Carolina, and most if not all states. If you use someone else’s real property that person loses a certain amount of control over that property and you gain a certain amount of control over that property. Equitably maintaining the property is the price you pay.

Q: WHAT DOES “GENERALLY” RESPONSIBLE FOR MAINTENANCE MEAN?

A: A user of the road that is an easement holder (a written or unwritten permission to use the road) has a duty of care. Normally care is based on your equitable share of use.

Q: WHEN YOU SAY THE OWNER LOSES A CERTAIN AMOUNT OF CONTROL DO YOU HAVE AN EXAMPLE?

A: An example would be if you allowed someone to share your driveway to get to their home, then you couldn’t put the fence across your driveway with a lock on it. On the other hand, they could be responsible for half the maintenance of your driveway.

Q: BUSINESSES NEED THE ROAD, SO WON’T THEY EVENTUALLY MAINTAIN IT?

A: This is a possibility, but how well have they stepped up so far? Also, they definitely will not widen or otherwise improve the road and it would remain a private road. They also could charge everyone else for their equitable share.

Q: WHY ISN’T THE COUNTY RESPONSIBLE NOW?

A: The county has no maintenance responsibility over private land

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Rumors and Facts

It will probably be at least another five years before a special tax district request can again be filed if this one fails.

*You may hear that the STD should fail because we don’t own “the road”. The road is owned by an LLC. An LLC that since and prior to the last STD has not repaired it, nor has any intention to.

*You may hear the owner(s) of the LLC should be forced to pay for “the road”. People who say that do not understand what an LLC is nor the laws that protect owners of an LLC.

*You may hear that STDs will affect your property values. Ask any realtor; a pothole laden entry road is much more effective in dissuading potential buyers.

*You may hear that that STDs will prevent potential buyers from getting a mortgage. That is simply untrue.

*You may hear that all or some of the businesses in the STD perimeters are excluded. That is absolutely untrue.

*You may hear that easement users (dominants) can’t sue other users (dominants) for road maintenance. That is untrue. In fact, under easement law the LLC can sue dominants to repair and maintain its asset.

*You may hear that we should let “the road” turn to dirt and just drive 15 mph. That is a personal choice. But even dirt and gravel roads require maintenance. Dirt and gravel roads could cause damage to your car.

*You may hear that the golf course doesn’t pay property taxes. That is ridiculous, as a quick look at Horry County Tax records will show you.

*You may hear that the STD cost to you will change over time. Not true.

The point is that there are many statements being made to try to dissuade you from approving this STD. Ask questions, do your own research.

For the past 33 years other than temporary pot hole repairs done by a resident or HOA, we have used “the road” for free. Nothing is for free.

The choice is an old pot hole laden road that continues to fail or a road that is safe and regularly maintained.

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MISCELLANEOUS

Q. WHAT SHOULD I EXPECT?

A: Depending on the community, you will either receive a personal visit from individuals asking that you sign one of our petitions, or a petition will be available at the New Town Property Management Office at 4590 D Girvan Dr. You must be a registered voter with an address within the STD and on file with the county to sign. You will be notified once the petitions are accepted by the county and the upcoming dates for the. council meetings and of course, the date of the vote.

Q: WHAT IF THE STD BOUNDARIES ARE CHALLENGED?

A: That is up to the county council to deal with.

Q. HOW CAN I HELP?

A: To volunteer your time, please email LegendsDr2024@gmail.com

Q. I HAVE ADDITIONAL QUESTIONS.

A: Please email LegendsDr2024@gmail.com

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LEGENDS DRIVE

FREQUENTLY ASKED QUESTIONS

Legends Drive Special Tax District Election Homeowner Questions for County Staff, June 25, 2024

LEGENDS DRIVE

Legends Drive Special Tax District Election Homeowner Questions for County Staff,
June 25, 2024