History of the Former Myrtle Beach Airport Fund

October 22, 1948…  Following World War II, the U.S. government deeds 143 acres of surplus property to the Town of Myrtle Beach.  The quitclaim deed restricts the use of the property or its proceeds to "...public airport purposes for the use and benefit of the public."  The property in question is east of U.S. 17 Business, approximately two miles south of the current city limits. 

February 6, 1953…  The Myrtle Beach Town Council approves a resolution seeking to be released from the 1948 deed restrictions, with revenues from the property to be used "...in connection with the civil use of the Myrtle Beach Municipal Airport, or for the development, improvement, operation or maintenance of another public airport...."

February 24, 1953…  The U.S. government releases the Town of Myrtle Beach from the 1948 deed restrictions:  "...the Grantor does hereby quitclaim, convey and release unto the Grantee all right, title and interest of the Grantor in and to the following tracts of land...including all reservations, restrictions, conditions, exceptions, rights and possibilities of reverter...."  However, the government retained the right to any fissionable materials on the property.  It also required that a right-of-flight in and through the airspace over the property be maintained and that the land not be used in any manner that would create a hazard to aircraft at the Myrtle Beach Municipal
Airport.  All other restrictions were lifted.

1954…  The U.S. government begins to develop a military project known as the Myrtle Beach Air Force Base.

April 21, 1958…  The City of Myrtle Beach, which owns and operates the civilian airport at the Myrtle Beach Air Force Base, agrees by contract with the South Carolina Aeronautics Commission and the U.S. government to relocate its civilian aviation operations from the Air Force Base to the Crescent Beach Airport, which is owned by the S.C. Aeronautics Commission.  Under the contract, the U.S. government acquires title to properties the city owns at the Myrtle Beach Air Force Base and, in return, contributes $326,000 toward the development of the Crescent Beach Airport for civilian aviation activities.  The city agrees to contribute funds from properties it received from the U.S. government to the South Carolina Aeronautics Commission for “operation, maintenance and development of the Myrtle Beach Airport at Crescent Beach.”

Note:  The U.S. government does not re-acquire title to the 143 acres it deeded to the city in 1948, as this land is approximately two miles south of the airport.

October 7, 1958…  In a subsequent agreement, the City of Myrtle Beach, the South Carolina Aeronautics Commission and the U.S. government, through its Civil Aeronautics Administration (C.A.A.), agree to the following items, among others: 

1)      The city’s operation of the Myrtle Beach Airport is not compatible with its use as the Myrtle Beach Air Force Base.

2)      The Crescent Beach Airport, if it receives additional improvements, would be an adequate substitute for the Myrtle Beach Airport.

3)      The S.C. Aeronautics Administration owns and operates the Crescent Beach Airport.

4)      The U.S. government is contributing $326,000 toward development of the Crescent Beach Airport.

5)      The city agrees to pay to the S.C. Aeronautics Commission, upon request of the C.A.A., all airport funds derived from properties transferred to the city through deeds dated October 22, 1948, June 17, 1949, and March 22, 1950.

6)      Upon completion of the additional development at the Crescent Beach Airport, the city is released from “any and all” deed restrictions on properties obtained from the U.S. government, including “its obligations with respect to the Myrtle Beach airport….”

7)      The S.C. Aeronautics Commission agrees to operate the Crescent Beach Airport for 20 years.

February 24, 1982…  Horry County sues the City of Myrtle Beach in state court to prevent second reading of a lease agreement for the 143 acres in question.

February 26, 1982…  Circuit Court denies relief and dismisses Horry County's complaint.  The judge rules that any requirement that the Civil Aeronautics Administrator consent to a transfer of funds was released by the U.S. government.  Horry County does not appeal the decision.

May 13, 1982…  Horry County sues the City of Myrtle Beach in federal court.

June 10, 1982…  The U.S. government files a disclaimer of "all interest" in the property.

June 22, 1982…  The federal court dismisses Horry County's complaint based on the U.S. government's disclaimer of all interest in the property.  The dismissal is not appealed.

August 17, 1982…  Horry County again sues the City of Myrtle Beach in state court over leases for the property. 

April 2, 1984…  The court rules in favor of the City of Myrtle Beach.  Horry County appeals the decision, and the Supreme Court upholds the lower court ruling with one exception:  the notice requirement in the city's ordinance which calls for three days of publication must be strictly followed.  The city re-advertises and approves the leases for the property.

July 1, 1988…  The City of Myrtle Beach brings a quiet title action for the property.

March 17, 1990…  The court grants summary judgment to the City of Myrtle Beach, ruling that the city has the legal right to lease the property, that the city may enter into new leases, and that quiet title in the property is vested in the City of Myrtle Beach.  Horry County asks the court to reconsider its ruling.

April 18, 1990…  The court refuses to grant the county's motion for a reconsideration, but does clarify its summary judgment, noting that its earlier "conclusion was not intended to nullify any rights, if any, which Horry County might claim it has as a result of this deed or other documents in the chain of title affecting the relationship between the City of Myrtle Beach and the United States of America."  Other than this clarification, the court refuses to change its ruling, noting that "none of the challenges to legal conclusions are meritorious in the Court's opinion."  Horry County appeals this clarification to the S.C. Supreme Court, which remands the case to the lower court for re-clarification.

October 9, 1990…  In a consent agreement, the lower court upholds and restates its previous orders, with only one modification.  Specifically, the court notes that if Horry County has any rights and interests, they were not determined in the court's order granting the City of Myrtle Beach quiet title to the property.  The order upholds the earlier orders giving the City of Myrtle Beach the right to execute and enforce leases for the property. 

1993…  As part of the closure of the former Myrtle Beach Air Force Base, Horry County acquires ownership of Myrtle Beach Jetport, later named Myrtle Beach International Airport.

February 28, 1995…  The Myrtle Beach City Council passes a resolution voluntarily adopting "a policy governing the use of airport trust fund assets."  Among other things, this 1995 resolution makes the following points: 

1.  That the City of Myrtle Beach owns the property. 

2.  That, in 1953, the U.S. government released the conditions contained in the 1948 quitclaim deed.

3.  That income "generated by the subject properties is held in trust by City Council for the benefit of the citizens of Myrtle Beach...."

4.  That City Council has traditionally restricted use of money from the trust fund to capital projects related to airport functions, with noted exceptions.

5.  That City Council finds that the primary use of money should continue to be for capital improvements to an airport serving the Myrtle Beach area.

6.  That the fund should be referred to as "the Airport Trust Fund."

7.  That the main body of the fund "shall be used only for capital improvements which directly relate to the development, operation, maintenance or improvement of a public airport which serves the Myrtle Beach area."

8.  That no more than 75-percent of the rental income from the properties in any fiscal year may, at the discretion of City Council, be used for one-time operational requirements or promotional projects related to a qualifying airport or airport services.

9.      That, in exceptional circumstances, City Council may lend funds for non-capital promotional projects in support of airport operations, provided that reasonable provisions for repayment are made.

10.  That "City Council shall approve all expenditures of trust fund assets by ordinance and the Council's determination of the appropriateness of any expenditure" shall be final.

March 1995…  The Myrtle Beach Jetport is officially renamed Myrtle Beach International Airport.

February 22, 2000…  City Council approves a resolution to use monies from the fund for construction of Harrelson Boulevard to "improve and enhance access to the current Myrtle Beach International Airport Terminal and provide future access to airport property."  This resolution notes that Horry County, among others, participated in the steering committee for the 1997 Jetport Road Corridor Study that called for design and construction of a four-lane Harrelson Boulevard to serve Myrtle Beach International Airport. 

September 12, 2000…  City Council approves a motion to give $3.2 million from the fund to Horry County Airports for improvements to Myrtle Beach International Airport. 

April 2001…  Memos from an Horry County Airports attorney dated January 22 and March 13, 2001, are delivered to the news media.  The memos allege or imply that the city improperly used monies from the fund.  Among other things, the January 22 memo alleges that "Myrtle Beach has no discretionary authority for spending funds."  The memo also alleges that "any taking of funds from the trust fund without a request from the airport operator represents the crime of embezzlement."  Neither memo identifies “the trust document” or cites the so-called “trust document” directly.

NOTE:  The 1995 resolution did not require "a request from the airport operator" for the City Council to allocate the funds (see also the June 22, 1982, court ruling).  The 1995 resolution was not a “trust document” in the commonly understood legal meaning of that phrase.  Finally, the Myrtle Beach City Council certainly had discretionary authority for spending the funds, as outlined by the 1995 resolution, which was dissolved by the January 13, 2004, resolution.

April 20, 2001…  After the attorney's memos are made public, the Mayor of Myrtle Beach and an Horry County Council member request that the S.C. Attorney General conduct an investigation of the city's finances.

April 24, 2001…  S. C. Attorney General Charlie Condon acknowledges the requests “to investigate whether the Myrtle Beach Airport Fund has been used in violation of law."  He asks that the State Law Enforcement Division conduct a preliminary inquiry to determine whether any criminal violations exist.

April 24, 2001…  In light of the pending investigation, the Myrtle Beach City Council halts all expenditure of fund monies, including those for Harrelson Boulevard.  At the time of this action, Horry County Airports has not requested the $3.2 million that City Council approved for airport improvements in September 2000.  (Note:  In 2003, the county finally requested the money, and the city released the funds.)

May 8, 2001…  The State Law Enforcement Division reports that no credible evidence of criminal activity can be found.

October 18, 2001…  Attorney General Charlie Condon concludes the investigation by his office and SLED, noting that "all Aviation Funds have been accounted for."  He writes that "officials from the City have been extremely cooperative and forthcoming."  While the Attorney General states that he believes "a charitable trust was most likely created with respect to the fund," he does not say that Horry County or Myrtle Beach International Airport is the beneficiary of any such trust, if one really exists.  He does not specify who or what may be the beneficiary of such a trust, but he cites the city's 1995 resolution that states that income from the property was to be held "for the benefit of the citizens of Myrtle Beach."  He further notes that the city has followed the intent of its 1995 resolution.

January 13, 2004...   Myrtle Beach City Council passes a resolution "to dissolve any prior resolutions, motions or references to aviation related revenues, trust or fund" and acknowledges that "there is no entity" known as the Airport Trust Fund.  Further, the resolution states that "the land that creates that revenue (is) to be known as Seascape Properties."

CONCLUSION…  As you see, the record on this property is surprisingly clear, in part because it has been the subject of so much dispute.  Here are several points that stand out:

1.      At no time has ownership of the property been disputed.  It belongs to the city.

2.      State and federal courts have consistently supported the City of Myrtle Beach's rights regarding the property. 

3.      Since the U.S. government disclaimed any interest in the property in 1982, any restriction on the use of the property or its revenues has been self-imposed by the City of Myrtle Beach. 

4.      The city's voluntary resolution in 1995 spelled out a policy for use of the aviation funds, and that policy was followed.  The 1995 resolution was dissolved by the January 13, 2004, resolution.

6.   Including the $3.2 million approved in September 2000, the City of Myrtle Beach has given Horry County $10 million dollars for its airport operations.

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