KPOG

 

 

Kiawah Island Property Owners Group

Chapters

KPOG History

A History of the Kiawah Property Owners Group from 1981-1995
written by Thomas U. Greer

FROM HOG TO KPOG - AN HISTORICAL REVIEW

Chapter 5


KRA Buys Kiawah - The Honeymoon Phase
On June 30, 1988, KRG sent out the first-ever "EXTRA" of its monthly newsletter, Overview, to all property owners. "Kiawah Island has been purchased for $105 million by Kiawah Resort Associates from the Kiawah Island Company, Limited, on June 29th," Overview reported. Thus Kiawah entered a new phase of its history, a phase which started with a glorious and lengthy honeymoon between property owners and their new developer, KRA.

 

At the fall meeting of the KRG held at the Church of Our Saviour on 26 September 1988, property owner director Tug Greer, who was completing 31/2 years on the KICA board, reported on the new atmosphere within the board. Greer stated that since Frank Brumley, whom KRA had installed as KICA president, took over, "all activities are now conducted in an open and above-board manner; property owner directors’ views are solicited, meetings are conducted in a professional manner and a spirit of cooperation is now readily apparent."

 

Two committees which KRG had taken over to keep them alive were immediately welcomed back under the community associationC the Budget Advisory Committee, headed by Wally DuBois, and the Security and Safety Committee, newly organized under Tug Greer. In addition, three new property owner committees were added to KICA - an Environmental Committee headed by Bob Cowgill, a Covenant Compliance Committee chaired by Hugh Goodman, and a Landscape and Garden Committee under Olive Beam. The Pool Operations Committee, ably led by Chet Barrand, continued in being. The Hurricane Preparedness Committee, under Stu Force, remained under KRG, continuing preparation of its plan. The committee was to go to KICA, but instead in early 1990 passed to the town, where it remains today. In addition, the KICA board made a decision to hire an administrator, and property owner Margie Brislin was the first to fill the position while Bob Jonathan, another property owner, became a part-time hire to assist Margie.

 

Getting back to more mundane KRG matters, at the September 1988 quarterly meeting of KRG, Dave Hott, chairman of the EMS Committee, announced that Hope Plantation had donated an acre of land to be used for a proposed EMS station close to Kiawah and Seabrook.

 

Election Commissioner Wally Dornseif reported the first town election would be conducted on 6 December and a "Meet the Candidates" forum was to be conducted by the League of Women Voters on 4 November. Subsequent to the election, South Carolina Secretary of State John Campbell told Kiawah Island’s new council Kiawah’s incorporation was the smoothest he had experienced in his 13 years in office. That was a huge tribute to Buzz Sniffen, Don Watters, Wally Dornseif and their committees and to KRG, all of whom contributed so much to this effort. KRG initiated the study, saw that both sides of the issue were aired, and supported the committee in many ways.

 

The town election was conducted as scheduled on 6 December 1988. Bo Turner was elected our first mayor and Pat Welch, Lib Melvin, Dave Hott and Tom Nelson were elected to the council. All were sworn in on 7 December and were introduced at the KRG winter meeting held on 12 December. At that meeting, Mayor Turner gave a report on town activities, and thus a precedent was established which continues to this day-  that the town would give a report at each quarterly KPOG meeting just as KICA property owner directors had been doing. Since these reports were always covered in Overview, KRG members were continually kept abreast of town and KICA activities as well as other Kiawah activities.

 

The newly-elected town council found itself in need of office space, telephones and basic furniture to set up its operation; however, it had no funds as yet. The KRG board quietly proffered a loan from their treasury which permitted the town to get started. Mayor Bo Turner presented a check to KRG at its 22 May 1989 meeting with thanks, repaying the loan. (That KRG/KPOG war chest is a handy thing to have around!)

 

At the winter quarterly meeting it was announced KRG membership now included 893 families, the largest membership in KRG history. Dave Hott reported that a consortium had been formed to collect $50,000 to accelerate the establishment of the new EMS station adjacent to Hope Plantation on Bohicket Road. KRG members in attendance supported the board’s decision to donate $5,000 from the KRG treasury to this effort. The towns of Seabrook and Kiawah, KRA, Southern National Bank, Bohicket Marina and the developers of Andell all made sizable contributions. With this financial assistance the county was able to build and establish the new EMS station in record time - it was operational in September of 1989.

 

Bob Zeller’s second term ended with the eighth annual meeting on 20 February 1989. Bob recounted highlights of the history of KRG since its inception, stressing the important role the organization played in representing the interests of its members. Property Owner Director Buzz Sniffen reported on KICA activities, announcing that KRA’s financial director, Townsend Clarkson, had replaced Milt Morgan on the KICA board. Bo Turner gave the first "State of the Town" report.

 

Tug Greer reported on a new committee appointed by Mayor Turner to accomplish the annexation of the remainder of Kiawah to the town. Members were Bill Burns, Bill Fowler, Tug Greer, Laura Pulleyn and Dick Sayers. Because of Kiawah’s small population and certain provisions of South Carolina law, Kiawah was limited in the amount of acreage it was able to include in the initial boundaries of the town. (Thus, at that time all property north of Governor’s Drive and east of the leisure trail leading to Marsh Island Park lay outside the town. South of Governor’s Drive, all property east of the entrance to Goldenrod Court was also outside the town. Avocet Lane and lots 29 through 32 on Bufflehead were also outside the town.) All Kiawah property owners outside the town limits had to be contacted and asked to sign a petition requesting annexation - it required 75% of the property owners in the area requesting it to bring about annexation. The committee was successful in their efforts. Over 80% of the property owners, including KRA and Dennison Royal, the largest landholders, requested annexation, and the remainder of the island was officially annexed on May 18, 1989.

 

A new slate of officers was elected at this annual meeting. Jack Pulleyn became president, Bill Widmer, vice president; Dot Dornseif, treasurer; Ruth Cusick, secretary; and Ginny Heinrich, assistant secretary. Directors were Stephany Dunfee, Pat Harding, Lynn Pagliaro, Bill Fowler and Vin Sweeney. In his initial remarks, incoming president Jack Pulleyn praised the past efforts of KRG, especially when threats to our interest arose. He also praised the new owners, KRA, for restoring property owner participation in island affairs and stated he saw no major threat to our interest on the immediate horizon. "This is an excellent time for the KRG to devote itself to things that will improve the quality of life on the island. While we anticipate fewer problems, we must keep the KRG alive." Thus began the Pulleyn regime. One of its first steps was to reduce the annual KRG dues by 20% - a great beginning!

 

On 7 March 1989, KRA announced they had sold the Inn and island amenities to Landmark Land Company of California. Landmark almost immediately announced its intention to build a hotel on the ocean in the East Beach area and a new golf course, designed by Pete Dye, on the oceanfront at the east end of the island. (Hindsight - one out of two ain’t bad!) The honeymoon now involved a threesome. The 22 May 1989 KPOG quarterly meeting was held at East Beach at the invitation of Landmark. Contrary to the attitude of the departed Kiawah Island Company, KRA not only recognized KRG, but Frank Brumley accepted an invitation to address KRG at this May meeting. There he announced that Landmark, in a magnanimous move, had transferred the prestigious Ryder Cup golf matches to Kiawah from one of their western locations. Morale among Kiawah property owners soared as the honeymoon continued.

 

At the next KRG quarterly meeting, on 22 May 1989, Stu Force talked about hurricane preparedness and how the town would now play a major role in this plan, particularly in ordering evacuation of the island. Stu’s main emphasis was to advise residents to evacuate Kiawah early when a hurricane was approaching to avoid major traffic jams. He promised the new hurricane preparedness plan would be distributed in June. Perhaps attendees would have paid closer attention to Stu that night had he told them Kiawah was soon to have a chance to test the hurricane plan, for precisely 4 months after that meeting "Hugo" paid us a visit and sent us all down those evacuation routes Stu was urging us to use early.

 

A word about this Hurricane Preparedness Committee is appropriate. The plan was distributed in the summer of ’89 as promised by Stu. Its importance to Kiawah before and during Hugo cannot be overemphasized. The entire population of Kiawah evacuated in good time prior to Hugo hitting the island. We had no casualties whatsoever. Early evacuation had been constantly stressed by Stu’s committee. It was the committee’s education of property owners which developed the respect for the danger of hurricanes that led to rapid evacuation. Remember, it was KRG that salvaged the committee and re-energized it when the Kiawah Island Company tossed it out of KICA. KRG provided funds to the committee in the summer of ’89 for printing the plan. Throughout late 1989, Stu Force coordinated his planning with the town. Kudos for the work are due Stu Force, especially, but also to the many volunteers who served as committee members, block captains, etc. KRG deserves the thanks of all of us for having the foresight to keep the committee alive and to provide the resources and support which nurtured the committee.

 

No one who was living at Kiawah at the time will forget Hurricane Hugo, which struck just before midnight on 21 September 1989. The clean-up that followed may well have been Kiawah’s finest hour. Under the leadership of Mayor Bo Turner, the Town of Kiawah Island established an operations center and the entire island including KRG pitched in to effect an efficient and rapid cleanup. Space prohibits recounting everything that happened, but all will remember Buzz Sniffen’s Trees Committee, KRA’s provision of specimen trees at reasonable rates and seedlings at no cost, Landmark’s family-style meals for all at cost, new KICA administrator Bob Cowan’s efforts after being hit with Hugo within days of reporting to his new job, and the KICA security force’s excellent control of entry to the island. Jack Pulleyn represented KRG at the operations meetings and formed a committee which outlined with visible tape all electric boxes hidden by debris to prevent them being bulldozed in the clean-up. His committee also inventoried downed trees on heavily damaged lots. The Kiawah honeymoon remained in full swing.

 

It was almost as if Mother Nature were trying to make amends when Christmas rolled around, as 1989 was the year we woke up to a beautiful white Christmas. (Those pictures of snow you see stuck on many refrigerators on Kiawah were taken that Christmas day.)

 

KRG’s main role during the months following Hugo was to keep its membership informed through Overview, which hardly missed a beat. Their mailbox distribution system was useful whether it involved fliers for the symphony or press kits concerning Landmark.

 

At the ninth annual KRG meeting held on 26 February 1990, Jack Pulleyn and Bill Widmer were re-elected as president and vice-president. Other officers elected were Stephany Dunfee, treasurer; Lucy Cogswell, secretary; Pat Harding, assistant treasurer; and Louise Risher, Bill Burns and Ruth Cusick, directors. Directors Vin Sweeney and Bill Fowler returned for their second year. The treasury contained $44,000 and membership had risen to 1048 families, continuing the steady increase.

 

President Jack Pulleyn’s remarks at this meeting emphasized the existing harmony on the island. "There has been a continuation of the cordial relationship. . . with KRA. . . and Landmark." "Both KRA and Landmark have paid considerable attention to the attitudes and concerns of property owners. . ." At this February meeting Pulleyn announced KRA was developing a plan for wildlife and fisheries on Kiawah and had asked for a financial commitment from KRG in support of the plan. Jack said he had run the idea past a number of people and the opinions were divided. Some were in favor of such donations, while others felt that wasn’t what the war chest was collected for. The KRG by-laws did not cover this matter. Pulleyn’s solution was to appoint a committee, which made a recommendation that was later submitted to the membership in a referendum, that the by-laws be changed to permit the KRG board to expend up to $10,000 a year on contributions to groups whose objectives KRG wished to support. The pros and cons were debated at subsequent meetings.

 

The results of the referendum were announced at the March 1991 annual meeting - the by-laws change was defeated by a 65%-35% majority vote, affirming that KRG funds were not to be used to make donations to such causes. Because of the democratic manner in which this matter was handled, the decision was calmly accepted by all. Jack Pulleyn had offered to collect contributions for the Wildlife Fund and eventually did collect $3275, which was turned over to the Wildlife Committee.

 

In early 1989, KRG learned that the Kiawah Island Utility (KIU) had filed with the South Carolina Public Service Commission (PSC) for a utility rate increase. President Pulleyn approached Frank Brumley, CEO of KRA (and also president of KIU), who agreed that before the application was submitted, KRA would sit down with KRG and try to iron out all differences before the application went into a public forum, to avoid a conflict like the one that developed over the 1985 rate increase request. A committee composed of Wally DuBois, Dick Sayers (both of whom participated in the 1985 dispute) and Jack Pulleyn then had a series of meetings that continued for four months. Rates had not gone up since 1984 because of KRG’s successful defeat of the ’84 requested increase. Since then the cost of water had gone up 64% and the utility was losing money.

 

The KRG committee reviewed the financials of KIU and eventually agreed to a prescribed rate increase. A number of committee suggestions on how to spread the increase were accepted by KIU. KIU and the committee agreed to disagree on the treatment of availability fees (called by this time "building incentive fees" by KRA) and KRG filed notice with the PSC of their intent to intervene. The KRG committee testified in favor of the rate increase, which was approved, at the PSC hearings and made its case concerning the availability fees.

 

The PSC agreed with KRG’s position regarding availability fees, which didn’t impact the rate increase but will be of great importance to property owners when KRA sells the utility. The manner in which this increase was handled prevented any acrimony and was fairly typical of the way Frank Brumley operated when he was CEO of KRA. KRG represented property owner interests once again and an equitable solution was reached. The time lapse between the time the parties began to meet and the final decision of the PSC (late in 1990) was almost a year. Important to note is that KRG was there with funds as necessary to represent property owner interests and was only looking for a fair solution, nothing more. At this rate, is it possible the honeymoon could last forever?!

 

A number of interesting items were covered at the 21 May 1990 quarterly KRG meeting. President Pulleyn stated he had a request from a non-resident member to look into reported falling real estate values on Kiawah. Property owner Gene Estes volunteered to investigate the matter and reported back at the next meeting, stating that market prices on condos had fallen steadily nationwide since the 1986 tax reform. On top of that, the Kiawah Island Company retained a number of condos which they unloaded at reduced prices in what some local real estate people called the "fire sale." Details on specific homes and condos were provided.

 

Mayor Bo Turner announced the town would begin to pay for picking up burnable landscaping debris on island. A new "Rules and Regulations" booklet was being published by the community association. KICA’s security force was now a totally in-house force - contract guards had been terminated. Kathy Boles gave a briefing on plans for the upcoming Ryder Cup (scheduled for the fall of ’91) and asked for volunteers to work on the tournament. (Remember Kathy? She’s back on Kiawah now working for VIT to market the Ocean Course.) In the issue of Overview covering this May ’90 meeting KRG, as a service to its readers, gave over several pages to publish an explanation, written by Jack Pulleyn, of all the acronyms and organizations on Kiawah.

 

With everything going so smoothly in mid-1990, some property owners began to wonder if there was a continued need for KRG. Jack Pulleyn pointed out that things had a way of changing rapidly in developments. He said KRA or Landmark could suddenly depart the scene. Most old-time property owners strongly believed the organization must be kept alive, so the suggestion to do away with KRG never got off the ground. (A wise decision and a lesson learned, for hindsight shows how quickly things can change in a relatively short time, as Landmark encountered serious financial difficulties and the honeymoon with KRA came to an end.)

 

The remainder of the Pulleyn regime through the rest of 1990 and the first two months of ’91 was reasonably quiet. Overview began devoting a section of its quarterly newsletter to the "Town Kryer" to keep KRG members informed of town happenings. Ryder Cup updates were given at each KRG quarterly meeting and property owners volunteered in droves to assist with that tournament.

 

During the fall of 1990 we had our second town election. Tom Nelson was elected mayor while Dave Hott, Lib Melvin, Pat Welch and Bill Connellee were elected to the town council. The KICA made the decision to bring the rest of its work force - landscaping, lake maintenance and general maintenance - in-house and hiring began. KRG put out a call to Kiawah for help for the Rural Mission which serves all our sea islands. The response was great and over 200 pounds of non-perishable foods was collected and delivered to the mission. Bob Cross was asked to look into the advantages and types of home burglar and fire alarms and he delivered a comprehensive and informative report at the 25 February 1991 KRG meeting. At the same meeting Bill Lieberman reported on the county recycling effort just getting underway. He told us all what to recycle and where to take it.

 

The election of new officers was held at this February annual meeting. Bruce Buchanan became president; Ralph Magnotti, vice-president; Doris Teti, secretary; Stephany Dunfee was re-elected treasurer; and Ellen Sayers became assistant treasurer. New directors elected were Roger McLaughlin and Elsie Meyer, while Bill Burns, Ruth Cusick and Louise Risher were the carry-over directors.

 

Outgoing president Jack Pulleyn gave a report on his stewardship and KRG’s accomplishments and thanked those who had helped him during his 2 years. He indicated with the large influx of new property owners and the many new full-time residents, there were many changes taking place which might cause KRG to make adjustments in the future. The membership stood at 1057 and the treasury contained over $53,000. Bruce made a few remarks, reminding attendees what KRG does and why they should all become members if they weren’t already.

 

As the Buchanan regime took the KRG reins in early 1991, there were a series of storm clouds on the horizon that threatened our Kiawah honeymoon, which had existed for 22 years. First, there were a series of rumors concerning financial difficulties Landmark was having, associated with the new savings and loan regulations. It was initially reported that Landmark was to sell part of its holdings. Then it was reported that all of its real estate holdings were to be sold to a new group headed by Landmark’s top management, with little impact on Kiawah. Information seemed to change frequently and there was an uneasy feeling among all of us.

 

The second storm cloud was that the Andell property had been purchased for development. In late 1990 we began to hear through KRA, which was involved in the large shopping center planned as part of the Andell development, that Kiawah was being asked to relocate its entrance road. This caused concern among a number of property owners, who set out to investigate.

 

The third cloud was the "transition issue." The covenants seemed to imply that control of KICA passed from the developer, KRA, to property owners when 5600 lots/homes/condos had been sold. It was discovered in late 1989 that KRA never intended to reach that number, hence they would control the community association until the last lot was sold. The number sold at that time stood a little over 3000. The issue was under close scrutiny and preliminary discussion. Finally, there were apparent problems between KRA-appointed directors and property owner directors regarding the 1992 KICA operating budget - was enough money being put away for a reserve fund, and was the Kiawah Island Parkway between the two security gates going to be patched or totally resurfaced? Were these all passing squalls or was the honeymoon turning into a troubled marriage? Stay tuned.

 

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