Kiawah Island Property Owners Group

1.  KICA ISSUES

KRA – THE DEVELOPER

PROPERTY OWNERS

DISCUSSION

Retains control over KICA Covenants (p24 and Exh. 18.1)

KRA, with only 1 Director and paying only 5% of KICA assessments, retains control over amending covenants.  See also Article VIII, Section 2 of KICA Covenants.  Therefore, for next 13 years, KRA – rather than PODs who comprise majority of KICA Board – determines whether any amendments can be made to KICA Covenants.

Retains control over choice of KICA Counsel (Exh. 18.1)

If majority of PODs determine Counsel has conflict of interest, it can replace Counsel for that matter (Exh. 18.1)

This is a significant win for property owners.

DELETED Easier for KRA to bring new properties under KICA Covenants.  ’94 DA requires 6 of 7 KICA Directors to vote to accept contiguous or near contiguous properties west of Main Gate for inclusion under KICA Covenants; ’05 DA reduces this to simple majority of Board (’05, p24; Cov, Art 11, Sect 2)

Property Owner referendum required to bring off-Island properties under Covenants (p24)

Referendum requirement only partial win; Board not required to recommend extending Covenants, and KRA can vote its own Type A votes and any proxies it receives.  When ’05 DA expires, Covenants will again prevail and if unchanged, KRA will be able to bring properties into KICA “without further consent of the Association.”

KRA waives right to appoint majority of KICA Board (p24 and Exh. 18.1)

KRA’s permanent waiver of appointing Board majority effective with signing of DA, instead of 1/1/2008 per ’94 DA or 30 days after effective date of ’05 DA, as originally proposed.

KRA cannot vote for PODs (p25)

This protection for property owners was in the ’94 DA, but not the ’05 DA until the final version.

Access Agreement between KRA and KICA to be amended to reference ’05 DA and any subsequent DA; required reduc- tion of maximum allowable dwelling units by number of lots sold at Cassique continues

With the Access Agreement (AA) between KRA and KICA signed in 9/2000, Cassique property owners received KICA decals to access Kiawah Island Club facilities inside the security gates, using KICA roads.  In exchange, Cassique property owners are required to pay half the annual KICA assessment.  Further, the AA required KRA to reduce the maximum allowable dwelling units on Kiawah by the number of platted properties sold at Cassique.  Prior to the final ’05 DA, the AA was not referenced, nor was ’05 DA referenced in AA.

DELETED KICA annual assessment reduced from 150% to 100% on marsh island properties, such as Terrapin Island, Summer Islands, etc. (’94, p11)

Deeds to these properties permit KICA to charge a superassessment for maintenance of bridges, etc. 

Dual majority no longer required to appoint KICA General Manager and Director of Security

Dual Majority means there must be a majority of Developer Directors and a majority of Property Owner Directors for approval.  This was important in ‘94 to protect specific individuals who held these positions at that time.  Both incumbents in ‘94 are no longer employed by KICA.

 

No dual majority required to approve expenditure of  MR/R funds

MR/R stands for KICA Major Repair and Replacement  funds, which are used for maintenance and repair of KICA infrastructure (roads, culverts, etc.). This has never been an item of contention.

KICA Board gains right to relocate KICA offices without KRA approval

The significance of this item is unclear because KICA does not currently own any property to which its offices could be relocated.