Historical Overview of the Dwelling Unit Cap
During the past several months, there has been much debate on Kiawah Partners' "remaining entitlements" of the 2013 Amended and Restated Development Agreement pertaining to the 1,184 Cap. In March, the Town Staff released an Infographic and a table dated 03-02-2022 highlighting those remaining entitlements but suggested that Cassique totals were not counted because of their unincorporated status—meaning they are not yet part of the Town of Kiawah Island. However, after conferring with the Town's current legal counsel, it was determined that the Cassique Dwelling Unit numbers are counted towards the Cap. Kiawah Partners' legal counsel agrees.
The original Development Agreement, which created a contractual relationship between Kiawah Resort Associates (KRA) and the Town of Kiawah Island, was initiated in September of 1994. The parties identified all existing Real Property holdings of KRA on Kiawah Island by description and location, which consisted of approximately 2,058 acres of highland and about 5,000 acres of marshlands and low lands. The 1994 Development Agreement established a "Vested Unit" limitation of 1,974 Dwelling Units entitlement, the limitation of 300,000 square feet of commercial, 325 new Hotel/Inn Rooms and 52,000 square feet of Support Space for the Hotel/Inn. The purpose and effect of the vested unit provision are to provide an absolute limit upon new single-family residential lots or multifamily residential dwelling units, which shall not exceed 1,974, "The Cap."
On October 12, 2005, the Amended Agreement with KRA included the reduction of the Vested Dwelling Units entitlements to 1,184. The Real Property holdings of KRA consisted of approximately 993 acres of highland and thousands of acres of marshlands and low lands. In addition, the Amended Development Agreement eliminated the 325 new Hotel/Inn Rooms with the 52,000 square feet of Support Space that was permitted on Parcels 13 and 12A, with the addition of 50 single-family homesites on Parcel 12B (Captain Sam's Spit). Parcel 13 is now Timbers (21 DUs), The Cape (80 DUs), and Parcel 13, Lot 1 (100 DU entitlements). Parcel 12A is now Beachwalker County Park (104 DU entitlements).
On December 3, 2013, the Development Agreement was Amended and Restated with the current developers – Kiawah Partners, to cover the annexed lands and future annexed lands, incorporating the six (6) amendments to the 2005 Development Agreement and modifying some of its provisions. The Real Property currently consists of approximately 621.71 acres of highland and thousands of acres of marshlands and low lands. The Vested Dwelling Unit's entitlements or Cap remained at 1,184.
Embedded in the 2005 Development Agreement and 2013 Amended and Restated Development Agreement states
"The total number of new single-family residential Lots and new non-single family residential Dwelling Units on the Undeveloped Lands of the Real Property except for the Freshfields Parcels, which receive preliminary subdivision plat approval for the first time after October 12, 2005, and the new non-single family Dwelling Units within the Undeveloped Landsexcept for the Freshfields Parcels that receive approval for the first time after October 12, 2005, shall not exceed in the entirety 1,184." – (2005), General Partner, Charles P. Darby, III; and (2013), General Partner, Patrick Melton
"Each Lot and condominium Dwelling Unit shown on a recorded master deed that is subdivided or created after the effective date of this Agreement on land now known as Cassique adjacent to Kiawah Island that is being developed by the Property Owner shall count against this cap of 1,184 new, additional single-family residential Lots and non-single family residential Dwelling Units on the Real Property excluding the Freshfields Parcels as described herein." – (2005), General Partner, Charles P. Darby, III; and (2013), General Partner, Patrick Melton
October 2005 and December 2013 Amended and Restatement Development Agreement | Dwelling Unit Cap Summary
As provided in the updated April 26, 2022, Infographic, the Dwelling Units Count was verified based on Charleston County's Parcel Data and Kiawah Island Real Estate conveyances or allocations.
In addition to the Infographic, you will find the updated spreadsheet used by the Town in its analysis. The difference is with the counts for Ocean Park, Cassique, Oyster Rake, and Freshfields. In the Town's initial analysis, parcels counted towards the 1,184 Cap should have only identified single-family lots or dwelling units approved on preliminary subdivision plats post-October 12, 2005. With that correction, please note the following:
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Ocean Park – Of the 198 lots at Ocean Park, 11 were approved prior to 2005, which leaves 187 towards the 1,184 cap.
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Cassique – Of the 244 current platted lots, 98 were approved prior to 2005, leaving 146 developed parcels towards the 1,184 cap. Cassique has one remaining area yet to be developed, Burn North, adjacent to Old Cedar Lane, where approximately ten (10) additional Dwelling Units may be allocated towards the 1,184 cap.
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Oyster Rake – The corrected total lots counted towards the Cap is 0. All lots of the Oyster Rake were approved prior to the October 2005 date. This results in the 23 Dwelling Units not counting towards the 1,184 cap.
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Freshfields – The Seafields Senior Living development has modified its development program to reduce the total number of dwelling units by decreasing the previous 114 to 106 dwelling units.
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Captain Sam's Spit – Although undeveloped, Captain Sam's has preliminary plat approval for the entitled 50 residential single-family lots.
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Beachwalker County Park – on July 1, 1976, a 99-year lease was signed between Kiawah Island Company Inc. and Charleston County for Beachwalker County Park. However, the 104 Dwelling Unit entitlements still remain on Parcel 12A.
Recap, since October 2005, we show 786 lots platted or dwelling units constructed or under construction (66 percent of the 1,184 total dwelling units); and 382 remaining entitlements. This represents 1,168, which is 99 percent projected of the total Dwelling 1,184 dwelling units.
This analysis suggests that the total number of developed lots and dwelling units will not reach the 1,184 cap based on the reduction of developed parcels compared to the original entitlements. The decrease in entitlements is evident in decisions made by the master developer to develop their properties with lower numbers than the base entitlements of the Development Agreement.
We hope you find this overview helpful in understanding the remaining Dwelling Unit Count total towards the 1,184 Cap.
Sincerely,
