KPOG

 

 

Kiawah Island Property Owners Group

 

The Development Agreement, Act III, Scene I, or What's Next?

from Kiawah Island TALK, June 2005

 

[Ed. note:  This is the third article in a series about current discussions between the Town of Kiawah Island and the Island’s Developer (KRA) concerning a new or extended Development Agreement (DA).  The first article provided an historical perspective on the 1994 DA; the second responded to property owners’ questions generated by that article

The development of Kiawah Island is compared to a three-act play in an article in Island Insights, a quarterly publication of Kiawah Island Real Estate (KIRE), a sales subsidiary of KRA (the developer).  Under the existing rules, using that analogy, the curtain could come down on the third act with a 325-room hotel and additional condos or commercial development right outside the main gate.

If you, as a Kiawah property owner, are not pleased with these potentialities, now is the time to contact Town Council members before a new Development Agreement (DA) is negotiated.    KPOG completely agrees with a statement in that article that "Creating a community is a creative endeavor that benefits from a shared vision."  Property owners need to be partners in creating that vision. 

KPOG has posted the text of the 1994 DA, including exhibit 13.2, between the Town and the Developer (KRA) on its website www.kiawah.org.  This exhibit defines zoning for various parcels on the Island.

The article in Island Insights discusses the relationship between the Town, the Community Association (KICA) and the Developer--and the ongoing discussions between the Town and the Developer regarding a new DA.  The essence of this article echoes the message sent by the Developer’s principal, Buddy Darby, in his February letter to all property owners.  In seeking community backing for extending the existing DA, he stated, “. . . KRA is not asking for any new land to be included nor for relaxation of any rules.”

The following points indicate the issues of potential concern:

The 1994 DA grants KRA the following rights:

  • KRA has the right to develop Cougar Island, the largest remaining undeveloped parcel on Kiawah.  A total of 375 single-family homes can be built on this 250-acre tract.  (1994 DA, Exhibit 13.2 parcel 43).

  • KRA has the right to build condos or commercial properties on approximately 8.5 acres adjacent to the Resort’s Mingo Point, just outside the Main Gate.  (1994 DA, Exhibit 13.2, parcels 2 and 3)

  • KRA has the right to build a 325-room, six-story hotel adjacent to Beachwalker Park.  (1994 DA, Section 13C.  Vested Rights for the Developed Lands, pp30-35).

  • The ARB retains total control over building in undeveloped areas, and may relax rules when it so chooses.  (1994 DA, Section 13B, Vested Rights Governing the Development of the Undeveloped Lands, pp12-30).  The ARB retains control over aesthetics in developed areas.  Variances must be approved by both the ARB and the Zoning Board of Adjustment.  (1994 DA, Section 13C, Vested Rights for the Developed Lands, pp30-35).

  • Despite the fact that KRA has transitioned a great deal of control of KICA to property owners, it still retains very important decision-making control in several critical areas even though the Property Owner Directors’ hold a 6-1 majority.  Some of these include KICA’s budget allocation process; control over who will serve as KICA’s legal counsel; and the inability of property owners to propose changes to the KICA covenants without KRA’s permission.  (1994 DA, Section 18, Kiawah Island Community Assn., Inc., pp46-51).