MYRTLE BEACH, SC (WBTW) – The City of Myrtle Beach’s Entertainment Overlay District, which bans the sale of CBD, tobacco, and vape products on certain parts of Ocean Blvd. went into effect Jan. 1st. As a result, several businesses have had to close their doors.

Tuvia Wilkes, who has been a business owner in Myrtle Beach for 37 years owns several businesses impacted by the new overlay district. Wilkes legally cannot sell a lot of his merchandise in his stores located inside of the overlay, which goes from 16th Ave. N to 6th Ave. S.

He says the overlay district has left many of his stores vacant and some of his employees without jobs.

“It affects us in every way. It’s a negative impact on the tourists who see the empty buildings; it’s a negative impact on employees; it’s a negative impact on property values; it’s a negative impact all around,” Wilkes said.

Wilkes says one of the biggest issues with the overlay district is that it only places restrictions on certain areas of Ocean Blvd. A lot of his competition are still allowed to sell the “banned” merchandise because they are located outside the overlay.

“My employees have to watch their friends in the store across the street sell the same items that they’re not allowed to sell,” Wilkes said. “Everyone is confused why you can sell on the corner of one block, but on the other corner you can’t.”

Wilkes says if the overlay district continues, he won’t be able to sell the products his customers want, and a lot of his stores could close down permanently.

“We only react for what the market asks for. If the market is asking for beans and you don’t have beans, you go out of business,” Wilkes said.

Wilkes and several other Ocean Blvd. businesses affected by the overlay district have filed a federal lawsuit against the City of Myrtle Beach regarding the overlay.

They have also asked for a temporary restraining order for the city’s CBD ordinance, however, no action has been taken and the overlay district is still in effect.