KPOG

 

 

Kiawah Island Property Owners Group

 

President's Corner, Kiawah Island TALK, September 2007, pp. 2-3

KICA Services to Move Off-Island?

Summering in Vermont keeps me sensitive to the difficulty non-resident property owners have staying in touch with happenings on Kiawah. The upcoming vote KICA has scheduled on acquiring property off-island is a good case in point.

The lead article on the front page of the August issue of Digest is “Members to Vote on Property Purchase.” The article goes on to say the Board of Directors has appointed a subcommittee “to pursue the availability of off-island land for boat storage and commercial pass operations.” At the special meeting called for September 23, members will “vote on generic permission to move forward.” (Digest, August 2007, p 1) In actuality, the vote is to extend the Covenants to off-island property purchased by KICA and to classify that property as “Common Property” as defined in the Covenants. According to information mailed to property owners, the “authorization only applies to a one-time purchase of land in the vicinity of Kiawah Island” which may be used for these purposes.

KPOG does have a number of concerns regarding the decision property owners are being asked to make. To begin with, what are the implications of extending the covenants to off-island property? The Covenants (Article II, Section 2d – see p 6) indicate that any such properties “can be referred to as a part of Kiawah Island.” Some property owners may have no strong feelings about considering a small parcel along Bohicket Road as part of Kiawah Island, but may have reservations about applying our “address” to a portion of the old “Little Pig” complex.

An email from KICA to members dated August 3, 2007 sought reactions to several possible off-island boat storage locations. The least expensive option suggested was “a site on River Road near Betsy Kerrison within approximately 5 or 10 miles of the Kiawah roundabout.” The email also asked for feedback on a possible concierge service to deliver and return boats from Rhett’s Bluff or Eagle Point. One possible parcel with deepwater access in that approximate location is Mullet Hall, which is owned by KRA, Kiawah’s developer. How would we feel about extending our address to that parcel? While this parcel might have definite advantages for boat storage, would a “yes” vote now open the door to extending the covenants to the remainder of this 2000+ acre parcel, nearly 1100 acres of which is high ground and probably suitable for building?

Extending the covenants to any piece of property is a serious step. The property will take our name and further define our Island identity. How each of us chooses to vote may, indeed, depend on the parcel in question.

And why is an issue of such import being vetted and decided within a short period of time toward the end of the summer, around a major holiday, when many resident property owners are off-island and many non-resident property owners have left the Island to return to their permanent homes?

Whenever property owners have been faced with important decisions, KPOG has provided a thorough analysis of the pros and cons of the issues. As TALK goes to press, KPOG does not have sufficient information to conduct such an analysis, thus making this column difficult to write. The questions below are just a starting point. We know property owners are already feeling they need more information to understand fully the issues involved here because they’ve started to ask us for our insights. There is one thing of which we are certain - there are probably other questions of equal import which are not included here.

The loss of the land on Kestrel Court for boat storage was noted at a KICA Board meeting in early March after KRA announced the land would be used by its subsidiary, Kiawah Island Utility. While this decision may have come as a surprise to some, according to KICA’s August 10 letter to property owners, the “decision has been expected for some time.” And while KICA may have lost the income generated by boat storage on Kestrel Court, KRA is continuing to write new contracts with property owners for boat storage there “into the foreseeable future.”

Only a few months ago KICA’s new Strategic Planning Committee began to study the Island’s need for expanded amenities and specifically asked property owners how they feel about locating some of them off-Island. With the current sluggish real estate market and no significant upturn anticipated soon, is it premature to make decisions about boat storage and commercial pass operations before the Strategic Planning Committee has completed its work and made its recommendations regarding the full complement of amenities and services? Could the Board negotiate a contract during the interim with a stipulation that it is subject to property owner approval to extend the covenants? Why the rush to purchase property? How does this initiative fit into the overall long-range planning process?

The problems with commercial pass operations should come as no surprise to anyone. At the time the new gatehouse was constructed several years ago, a number of property owners urged the creation of a third lane for commercial vehicles, but this concept was not supported by the KICA Board. As the Island has continued to grow, we have all experienced increased congestion getting through the Main Gate when large commercial vehicles are frequently parked on the right shoulder.

What will be required to successfully divert commercial traffic new to the Island and without passes to an off-island facility before it reaches our Gate? Vehicles making u-turns at the Gate would likely create as many problems as vehicles parked on the shoulder. What would it take to acquire additional property to add a third lane at the Gate? Is there any way this could be done without the Town’s condemning the property? If condemnation is the only option, is a third lane at our Gate a more or less satisfactory solution to the problem?

With no land available on-island for the stated purposes, what are the pros and cons of contracting with an independent source to provide these services off-island? As Association needs expand, what services do we move off-island, how far are they moved, and how do we finance the project(s)?

The funds for the proposed land purchase would come from surplus operating funds, which are expected to be $3 million for 2007. Based on the information provided to date, it does not appear there would be a need for a special assessment of all property owners now. Are there any plans for a segment assessment or user fee to offset any capital investment or other ongoing costs, for example, to provide boat storage or other related services to a small subset of property owners?

If additional services or amenities are to be moved off-island, what are the advantages to co-locating them rather than distributing them across multiple parcels? A boat storage facility and commercial pass operations are both “business” applications and in that sense, are complementary. If we needed to build another recreational, Sandcastle-type facility, would we be happy sitting at the pool with tractor trailers parked in an adjacent lot? If co-location is desirable, these issues should be an important factor in site selection.

Is there sufficient commercially zoned acreage close enough to Kiawah to meet our needs or would KICA consider purchasing a parcel and seeking a use variance? What will happen to the demand for services/amenities and willingness to pay as they are moved off-island and further from home? If the cost and location of property owner boat storage, for example, is no longer competitive and is less convenient than it is now, might current users be likely to move to commercial facilities that offer a variety of services?

KPOG expects that additional communication from KICA between now and the September 23 meeting will address these questions, as well as the myriad of others likely to be raised by property owners. We urge all property owners to review the information in the member packets, to familiarize themselves with whatever additional information is posted to the KICA website, and to attend the August 21 Open Forum. As noted earlier, an audio link will be provided for members who would like to attend the forum but are unable to do so in person. Since ballots or proxies are not due before September 19, property owners who still have unanswered questions have time to contact KICA before voting.

 

Diane Z. Lehder