KPOG

 

 

Kiawah Island Property Owners Group

 

President's Corner - Whose Vision? - Part 2

from Kiawah Island TALK, May 2007

 

A proposed Community Performing Arts Center located at Freshfields Village and designed to serve Kiawah, Seabrook, and Johns Islands headlined this column in December. A study evaluating the feasibility of that concept was presented to the Town on February 26. [See article p 1.] The study acknowledges there are a number of key issues which would need to be addressed and resolved before the plan can be considered viable. Clearly marked “DRAFT,” the report raises as many questions as it answers.

This column presents further analysis of the proposal as outlined in that feasibility study.


While the plan presented is only a preliminary proposal, KPOG feels it is important that property owners understand what is currently on the table. Here are some questions you might consider as you review the proposed plan.

Business Model: Is this facility envisioned as a for-profit, not-for-profit, or charity operation? At a meeting on February 26, the consultant who prepared the study said, “Performing arts don’t make money.” While the Town has mentioned setting up a separate organization/corporation to manage and operate the facility, it has also been talking to SMG, described as the premier organization among operators of this type of facility (www.smgworld.com). No one can know for sure, but it is probably safe to assume that regardless of the business model for the facility, any independent operator would require its operations to be profitable.

What are the assumptions of the business plan for this project and why has the plan not been made public as yet? Were the facility to be built and the proposed programming unable to generate sufficient revenue with an outside operator, how might this impact programming? After the capital investment at the front end of the project, what kind of ongoing financial commitment would be expected or required from the Town?

Would the operator of the facility, the Freshfields Village developer, and any other concessionaires share in the risk and any losses, or would contracts guarantee their profits and require that any losses be underwritten by the Town and ultimately the property owners?

Funding and Ongoing Costs: This facility was originally envisioned as a joint Kiawah/Seabrook project. Has Seabrook committed to support the proposed plan? If so, how will we share expenses? If not, will Kiawah move forward alone? The Town has stated that there are federal, state, and local monies available to support a project such as this. What percentage of the project might be financed with outside funds and what are the requirements to qualify for these funds?

Pages 25-28 of the study, devoted to Conceptual Costs of the project, were not included in the copy of the study provided to KPOG. We have filed a formal request for this information under the Freedom of Information Act. What will be included in the cost study and when will this analysis be available?

ATAX Funding: The town is legally permitted to commit Accommodations Tax (ATAX) monies not only to capital projects outside town borders but also to continuing projects. As most readers of this column know, ATAX funds are monies received by the town from a tax on accommodations. These funds must be spent on promoting tourism. Kiawah’s total ATAX revenues for the past three years have ranged from $643,271 for the year ending June 30, 2004 to $1,104,351 for the year ending June 30, 2006.

Committing an ongoing stream of ATAX monies to this project would require that the budget grow to offset such expenses, or that funds be diverted from existing ATAX projects that have become part of the fabric of this Island. These projects include such events as the Fourth of July and New Year’s Eve fireworks, the annual Easter Egg Hunt, and the Blues by the Sea program. If sufficient ATAX monies are not available to support the performing arts center project, where will the Town find the remainder of the money?

Ticket Sales/Prices/Process: With a facility like this at our doorstep and spearheaded by our own Town officials, could Island property owners expect any direct benefits regarding access? While there has been some discussion regarding ATAX sponsored free events at the facility, might property owners have some kind of preferred status for paid events?

Ticket prices for a variety of performances scheduled at the North Charleston Performing Arts Center during April range in price from $26 to $69.50. Tickets purchased at the box office for all performances at that SMG-operated facility are charged an additional $3 box office fee. Tickets purchased through Ticketmaster are assessed an additional “convenience” fee based on the price of the ticket. For the Joseph and the Amazing Dream Coat performance on April 12, for example, a $28 ticket would incur an additional charge of $5.75 while a $58 ticket would be charged an additional $8.75. Would Island residents be able to purchase tickets at a local box office without a surcharge? Would we have access to performance tickets before they became available to the general public? Would preferred access also be granted to residents of Seabrook and Johns Islands, whether or not they contribute to the amphitheater financially? Would non-resident property owners receive the same benefits as resident owners or pay “full price,” as tourists and visitors from the greater Chareleston area will do?

Facility Size: To help us understand the scale of the proposed project, we considered the capacity of other local venues. The proposed 2000 seat facility would be eight times larger than the 240 seat Footlight Theater, four times larger than the 463 seat Dock Street Theater, only slightly smaller than the 2250 seat North Charleston Performing Arts Center, and approximately three-quarters the size of the 2732 seat Gaillard Municipal Auditorium.

The study makes it clear that the success of a facility this size would require drawing an audience from an area well beyond the Kiawah/Seabrook/Johns Island communities. According to the consultant, it is a facility for “Charleston and the Islands.” If this project moves forward, is a 2000 seat facility the right size for our community?

Noise: The proposed facility site would be located north of the existing man-made pond adjacent to Seabrook Island Road, extending toward the existing roundabout. According to the report this orientation “will provide minimum acoustical impact to adjacent properties, although it is recommended that some acoustical abatement strategies be incorporated into the design of the facility to further shield the adjacent properties from sound.”

It is a fact that sound carries, especially when it travels over water. Music at events on the Resort’s property at Mingo Point just outside Kiawah’s Main Gate has been the subject of a number of complaints. Current residents at Kiawah River Estates (also known as Hope Plantation) report that they sit on their decks in the summer and listen to jazz performances held on the Green at Freshfields. How far will the sound from amplified performances carry? What level of sound is acceptable for a performing arts center in that location, who will determine what “acceptable” is, and what will the criteria be?

Traffic: Assuming three passengers per vehicle, the study suggests existing and planned Phase II parking spaces within Freshfields Village are sufficient to accommodate facility patrons. Traffic immediately before and after events will constrain movement not only within the Village, but also on existing access roads. How might this impact travel to/from our Islands at these times, and how might it impact the ability of rescue personnel and vehicles to respond to Island emergencies? Have the Fire Department and EMS been consulted about any concerns they might have?

The Operations Planning section of the study indicates “Proper signage can alleviate the necessity for operations personnel in many cases.” In addition to parking signs, the North Charleston facility has an elevated sign adjacent to I-526 with streaming text advertising programming. While such a sign is unlikely to be proposed for this project, what type of additional signage might a facility at Freshfields require to direct event traffic or advise potential patrons of current and future programming? What restrictions on signage regarding location, height, etc. might be expected?

Who Benefits? Who will benefit from a performing arts center at the crossroads to Kiawah and Seabrook Islands? Will ready access to performances improve our quality of life? Will this new amenity increase property values for those of us who live here or for those of us who own property and rent it? Will the advantages offset the inconveniences we are likely to encounter? While it is presumed that Freshfields’ developer (Atlantic Partners LLC is an affiliate of Kiawah Development Partners (KDP), Kiawah’s developer) will donate the property for such a project, such a donation is likely to qualify as a tax write-off. Further, the corporation would no longer be responsible for property taxes on that parcel. If the facility’s agreement with the developer mirrors lease agreements with current Village tenants, the facility will generate a steady and potentially growing new revenue stream.

Private or Public? Freshfields Village is not a part of Kiawah Island. It is located on an unincorporated portion of Seabrook Island within Charleston County. Has the developer of Freshfields requested county ATAX funds? If so, how much has been approved for the amphitheater? If not, why not?

Freshfields Village is private property. Why is any governmental body driving this project? If any government is involved, shouldn’t all adjacent governments be involved? If this project is a sound and lucrative investment, why isn’t it being undertaken by private entities?

Oversight Issues: Despite the fact that Freshfields Village, the site of the proposed facility, is located on an unincorporated portion of Seabrook Island, the study describes the Village as being located on Kiawah Island. It says that zoning will be handled by the Charleston County Planning Department, the Kiawah Island Planning Commission, and the Kiawah Island Board of Zoning Appeals. It further states that the project will require approval of the Kiawah Island ARB and a Kiawah Island building permit. Has there been any legal opinion as to what government review will be needed? If the property is not located within the Town of Kiawah, why would the Town of Kiawah be involved in the approval process unless there are plans to annex the property?

Schedule: What is the schedule for this project? While the report suggests a 2008 opening, it appears that additional studies recommended in the report could delay any opening substantially. The 18 month schedule laid out in the study makes no mention of time for community input and incorporation of that input, even though those steps are mentioned elsewhere in the report.

When the Town allocated up to $50,000 for this feasibility study last fall, KPOG suggested it solicit public input on the concept before those funds were spent. We were told that property owners couldn’t react to an abstract concept, they needed something more concrete to get their arms around. We now have a 32-page study in our hands, yet as we go to press, KPOG is unaware of any efforts the Town has taken to publicize its availability to Kiawah property owners or to our neighbors on Seabrook and Johns Islands. Instead we have learned that the Town is seeking substantial ATAX funding for additional work on the project. As we go to press, KPOG has not yet had the opportunity to review audio tapes of the March 23 ATAX meeting at which these matters were discussed. Despite the fact that these meetings are open to the public, KPOG has had to submit a formal request for access to this information.

At the February 15 KICA forum to discuss the proposed changes to the Community Association covenants, Councilman Don McIver, chief advocate for this project, spoke passionately about the need to thoroughly vet issues which could potentially have a major impact on the community. KPOG couldn’t agree more. We believe initial hearings on the proposed performing arts center should begin now, before resident property owners leave the Island for summer destinations. The more time and funds the Town invests in any plan before receiving input from the community, the more difficult it becomes to accept and incorporate such feedback.

Further, KPOG hopes any such meetings would be scheduled to allow maximum community participation. Hearings regarding the 2005 Development Agreement with KRA were scheduled in a short period of time around the 2005 Labor Day holiday, when many property owners were off-Island and unable to participate.

At this point in the process, it’s all about the vision. Let’s make sure we get the vision right before we commit additional time, money, and energy to further develop the plan.