March LIBPA Newsletter

2008 Election Calendar: This is an election year in more ways than just the selection of another President. Following are key days for your planning purposes. April 26 – School Bond Referendum March 15 – 17 Dates to file as an official party candidate for the state primary June 10 – South Carolina Primary election August 15 – Filing dates for candidates for Mayor or City Council (2 seats), City of Beaufort November 4 – General Election

Just A Reminder: The response to the recent request for payment of annual dues has been great. To all of you who have already paid your dues a very sincere thank you. If the invoice is still laying on your desk in the “things to do” pile, please take a moment and fill it out and return it with your check. If you have changed your address, e-mail address or preference for the manner in which you receive your newsletter this is a quick way to let us know of the change.

Island Notes: Medical practice closes. In last month’s newsletter we announced that LIBPA member Dr. S. C. Assorgi, D. O. was in the process of establishing an Immediate Medical Urgent Care practice to be located in the Professional Office Village. Due to a combination of private circumstances Dr. Assorgi has announced his decision to close the practice. We wish him the best of luck in his future endeavors. Lady’s Island Airport Master Plan. Plans are being developed to issue a contract for the development of a long range master plan for the Lady’s Island Airport. A part of the process for development of such a plan includes coordination with organizations such as LIBPA. Allan Rae, who is a LIBPA member with extensive experience as a pilot, has volunteered to represent us in this matter. Sams Point Road property cleared! The property next to the Exon Tiger Express convenience store across from New Point on Sams Point Road has recently been cleared causing many to ask what is scheduled for construction at the site. A quick check with the property owners indicates they are selling the timber from the property and to avoid leaving an “eye sore”, simply cleared the lot. They have no immediate plans for development of the property. Welcome Mr. Saleem Khattak, new Beaufort County Public Services Director. Mr. Khattak assumes the position previously held by Buz Boehm. Buz served as a past president of LIBPA. One of Mr. Khattak duties is the oversight of the road construction projects on Lady’s Island. Food Lion invest in Lady’s Island store. If you have recently visited the Food Lion grocery store on Lady’s Island you can’t miss the whole store renovation and upgrade in progress. It is impressive and indicates a corporate decision that the Lady’s Island market is worth substantial investment and that Food Lion intends to be a presence on Lady’s Island for the foreseeable future.

LIBPA Survey Shows Strong Opposition To Lady's Island Wal-Mart: In response to the Wal-Mart Corporation requesting approval from the City of Beaufort to build and operate a Wal-Mart store at the intersection of Sea Island Parkway and Airport Circle, the February LIBPA survey asked the community to comment on the question – Should a Wal-Mart super center be approved for Lady’s Island? The response was the largest of any survey taken by LIBPA to date and indicated very strong opposition to the location of a Wal-Mart on Lady’s Island. There were 169 residents who took the time to vote and 70 individuals expressed their personal opinions on the subject in the form of comments. Of the total vote 74% opposed the location of a Wal-Mart on Lady’s Island, 22% were in favor of it and 4% indicated a desire for additional information before making a final decision. Typical comments included: “I don’t understand why everyone is opposed to change. This (Wal-Mart) would save me and my family time on the road and gas.” (Ms. Rose Ewing) “No, environmental hazard, traffic congestion, overuse of bridges and loss of local businesses” (Mr. Ed Hill) If you would care to view all of the comments please click here and after taking this month’s survey there is a link to our previous two polls and the accompanying comments. A special thank you is extended to each of you who took the time to participate in the survey. There is a significant difference between being able to say “we think the community is against a Wal-Mart on our island” and “based on a recent survey 75% of those in our community are opposed to Wal-Mart being located on Lady’s Island”.

Will The Upcoming School Bond Referendum Get Your Vote? The Beaufort County Board of Education recently approved placing a $162.7 million bond referendum before the voters of Beaufort County on Saturday, April 26, 2008. Here is what the money is being requested for: - Construction 2 Elementary Schools and 2 Early Learning Centers in Bluffton ($68.1 million) - Purchase of Land ($43.3 million) Bluffton Elementary School $5.9 million Lady’s Island Elementary School $1.9 million Bluffton Middle School $14.8 million Bluffton High School $20.7 million - Additions and remodeling to existing schools to include Beaufort High Performing Arts Center, Battery Creek athletic facility, Broad River Elementary PE wing, Mossy Oaks PE and classrooms, McCracken MS band and drama room. ($15.5 million) - Renovations/modifications and maintenance improvements for existing schools for purposes of academic improvement, safety and health ($35.8) Approximately $109.4 million is being requested for new schools, expansion of existing schools and land for future schools in Bluffton. In northern Beaufort County the proposed bond would provide $2 million for the purchase of land for a future Lady’s Island Elementary School, $9 Million for a performing arts center at Beaufort High School, $2 million for a new Broad River Elementary School gym, $3 million for a new/replacement gym and additional classrooms at Mossy Oaks Elementary School, $900,000 for a new wrestling building at Battery Creek High School for a total of $17.9 million for northern Beaufort County projects. Approval of this bond would add somewhere between $16 and $24 to the tax bill for a $200,000 home. We are privileged to have a competent and conscientious School District Superintendent in Dr. Truesdale and a school board that is working with her to find solutions to the tough problems which exist in our school system. However, the following facts cannot be ignored: - The majority of the referendum money is slated for southern Beaufort County and is necessary due to excessive development, specifically the Bluffton area. - For whatever reason, in the past adequate basic maintenance has not been provided for the existing schools and this referendum does include funds to fix this very serious problem. For example, 10 out of the 17 schools in northern Beaufort County require full or partial roof replacement and funds for this and many other similar but very necessary projects is included in the referendum.. - We have overcrowding in our schools on Lady’s Island and the short term solution to this problem is not contained in this referendum. It does include funds for the purchase of land for future construction of a 3rd elementary school. Dr. Truesdale has held meetings with the parents and members of the Lady’s Island community to discuss possible solutions to the overcrowding other than building a new elementary school. - Funds ($9 million) are included for a 650 seat performing arts center for Beaufort High School. The last Beaufort County school bond referendum was held in 2006 and was decided by 13% of the registered voters. This is a very important election and deserves the consideration of all of us. Please plan on voting on April 26. In an effort to find out how you feel about the upcoming school bond referendum this month’s LIBPA survey question is: At this time, my first reaction to the April 26 School Bond Referendum is: a. I support the funding of our schools and will vote for the bond referendum. b. I do not support the bond referendum and will vote against it. c. I am undecided and desire additional information before I make a final decision. Please visit our survey page and let us hear your thoughts on this matter.

Another Housing Project On Lady's Island?: Mr. Ben Gecy recently requested the Beaufort County Development Review Board approve the construction of 34 new homes on 17 acres adjoining Francis Marion Drive. This proposed project, as presently designed, would have an entrance from Springfield Road. The Development Review Board deferred any decision pending receipt of additional information from the applicant regarding entrances and exits from the project. Another factor was the fact that a portion of the property in question is zoned Neighborhood Activity Center which is primarily commercial and would require rezoning to allow residential use.

Tourism In Beaufort County: by Carlotta Ungaro, President & CEO Beaufort Regional Chamber of Commerce  Tourism and the military are the two major economic engines in Northern Beaufort County. The Beaufort Regional Chamber did a study in 2004 on the impact of tourism and at that time, the economic impact of tourism on the County’s economy was $1.2 billion. That county-wide impact can be broken down to a total impact of approximately $175.8 million in Beaufort; $136.7 million for the region consisting of Lady’s Island, St. Helena Island, and the resort islands (Fripp, Harbor & Hunting); $70.1 million for the Yemassee, Seabrook, Laurel Bay, Dale and Lobeco areas and $23.4 million in Port Royal.1 What does this mean to the residents of our area? The obvious answer is jobs and business growth, particularly in the service sector. For every 100 tourism jobs in Beaufort County an additional 26 non-tourist related jobs are created. It also means tax savings. Industry research shows that in areas like ours, the sales taxes which tourists pay keep residential property taxes, on average, about $700 lower than would otherwise be necessary. 2 Sales tax collected on tourist expenditures equal about 30 percent of the total sales tax collected in Beaufort County, which is a great help, particularly for our road infrastructure. As our local governments tighten their belts to deal with state-imposed caps and the weakening economy, we anticipate our elected officials to look toward funds presently used for marketing our area as potential funding streams. On first blush, this may seem to be a reasonable decision but look again. Using tourism marketing funds for things other than marketing will likely result in higher costs for everyone. On average, in South Carolina, for every $1.00 in public funds (state and local) spent on tourism, an additional $2.46 is raised in tax revenues. 3 Tourism is one area we have success in attracting funds because local tourism funds are used for matching state grants. Targeted, effective marketing will help buffer our economy as the anticipated downturn approaches. Investing in a consistent message to attract visitors is the most effective way to market Beaufort, Port Royal, Lady’s Island, Harbor, Fripp and the rest of the County. Let us not be penny-wise and dollar-foolish by reducing the funds available to attract tourist and then be surprised because fewer tourist visit our area. 1 Economic Impact of the Tourism Economy and Tourism Profile of Beaufort County and the Surrounding Area, Bureau of Business Research and Economic Development, Georgia Southern University, December 2004. 2 TIA 3 Travel & Tourism in South Carolina, Feb. 2006, SC Travel & Tourism Satellite Account

A Look At The 2007 Lady's Island Business Picture: In 2007, based on business licenses issued by Beaufort County, Lady’s Island attracted 122 more businesses than the previous year but made $6.8 million less in gross revenue. It should come as no surprise to anyone that the real estate field had a tough year in that it saw 14 fewer license issued and a 39% drop in gross revenue. Professional services remained the second largest type of business in regard to total number of licenses but reflected a 60% drop in revenue in 2007. One of the factors that hurt Lady’s Island businesses in 2007 was the McTeer Bridge being out action for an extended period of time. Businesses that had a good year in 2007 included food and convenience stores, miscellaneous retail and health services. Following is a review of the number of business license issued by Beaufort County to businesses on Lady’s Island for the last 4 years.                                  It should be noted that businesses on Lady’s Island which have been annexed into the City of Beaufort are not included as part of the data presented in this article. If they were included they would include, as a minimum, 1 grocery store, 4 restaurants and 2 miscellaneous retail businesses which would increase the total gross revenue by approximately $4- $6 million. The City of Beaufort uses a different type of system than Beaufort County in accounting for their business licenses and for that reason is unable to provide information similar to that provided in this article. In summary, the number of businesses choosing to call Lady’s Island “home” continues to increase at a very healthy rate and 2008 should be no different. The 23,000 customer base comprised of residents of Lady’s Island, Fripp Island, Dataw Island and St. Helena Island who view Lady’s Island as their closest and most convenient source of goods and services make a very good reason to select the island for a business location. Editor’s Note: A very special thank you to Ms. Cheryl Hall, the past Director of the Beaufort County Business License Department, who provided the information contained in this article. She is relocating to Atlanta and we wish her every success in her future endeavors. We welcome Ms. Jeanett Roseberry as the new Director of the Business License Department.

Wal_Mart Status Report: The following information is provided to assist our members in understanding the factors involved in the recent denial and subsequent appeal of that denial of a request by Wal-Mart to establish a super center on Lady’s Island. The property on which Wal-Mart desired to locate their store was originally zoned by Beaufort County as a part of a Planned Unit Development (PUD) in 1994 (prior to the Comprehensive Plan) and authorized a combination of commercial and “light industrial” uses. The owner of the property in question requested to be annexed into the City of Beaufort in 2003. As part of the annexation process, the property owner requested and was granted by the City Council a development agreement and a Planned Unit Development (PUD) which laid out the basic concept by which the property could be developed. Planned Unit Developments, once approved, usually have no time limits. So the original Planned Unit Development, approved in 2003, is still in effect today and authorizes a large amount of commercial space spread among a number of commercial facilities. These facilities can be used for both light industrial and commercial uses. In addition to the PUD the property owner also received a development agreement. Development agreements are negotiated contracts between the property owner or developer and the permitting authority, which in this case was the City of Beaufort. Most development agreements are filled with legal terms and definitions but simply stated they are a negotiated deal. There are benefits and dangers to both parties and each one is unique and in all cases they are effective for a specific time limit. In this case, the time limit was 5 years with the expiration date being February 25, 2008. This development agreement contained a clause where by the agreement “shall” be extended for a period of 5 years unless the property owner “materially” breached the terms of the original contract. The Beaufort City Council has passed, by the first of 2 required votes, a motion to extend the agreement. This vote precluded the agreement from expiring on February 25. However, before the final vote is taken the members of City Council have indicated a desire to take a very close look at the details of the document and make such changes as may be deemed appropriate and necessary. Upon receipt of the Wal-Mart request, in a spirit of openness and full disclosure, the City of Beaufort placed, on their web site, all of the relevant documents pertaining to the annexation of the property in question and the proposed Wal-Mart super center. In addition, LIBPA received prompt, thorough and courteous replies to each and every query made to the various representatives of the City of Beaufort regarding the proposed store. After reviewing the type of development approved in the Planned Unit Development and what was being requested by Wal-Mart Ms. Libby Anderson, the City Planning Director and also the City Zoning Administrator ruled the request was not in conformance with the PUD, thus denying it. Wal-Mart could have (a) revised the application to better conform to the original PUD and reapplied or (b) appeal the decision to the City Zoning Board of Appeals, which they have done. If the Zoning Board of Appeals rules the decision by the Zoning Administrator was correct, Wal-Mart can then appeal that decision to the Circuit Court. If the Zoning Board of Appeals rules that the Zoning Administrator’s decision was in error, the application is returned to the Zoning Administrator for reconsideration in view of the Board’s ruling. If Ms. Anderson had not ruled against the application it was scheduled to be considered by the City Design Review Board. This board, which is composed of citizen volunteers and appointed by City Council, is established to ensure projects meet the established design standards. Its method of operation is a form of negotiation in that the board advises the applicant of what action is required to meet design standards and allows them to return at a later date to demonstrate compliance with the indicated standards. If a large number of residents had appeared at the meeting voicing disapproval of the entire Wal-Mart project it is questionable the board could have legally disapproved the project without providing an opportunity for corrections to be made. If they had denied the application Wal-Mart could have appealed that decision to the Circuit Court. As can be seen, the procedures established to ensure a property owner has a reasonable opportunity to obtain fair value for his land, the developer has clear standards which must be complied with to obtain development approval and the impact on the public is fully considered prior to a final decision requires very technical and often complicated procedures.

LIBPA Policy Regarding New Businesses On Lady's Island: by Rich Tritschler, President, Lady's Island Business and Professionals Association During the recent Wal-Mart incident it became obvious that LIBPA should share with our members and the community the manner in which we, as an organization, support or oppose those matters which effect our island. For example, it is the general policy of the Lady’s Island Business and Professional Association to actively promote the location and success of businesses on Lady’s Island. Exceptions to this policy are those businesses which would pose a threat to the basic infrastructure, environment or quality of life on the island. In those cases, LIBPA will actively oppose the location or operation of such businesses. Once the Board of Directors, with input from the general membership, determines that a proposed development or business would be detrimental to the island the next step is to determine what course of action is appropriate and has the highest probability of success. Usually, the courses of possible action fall into the one of the following categories: - Make those in authority (elected officials) aware of community concern. If, for example, a change of zoning is required and elected officials must vote to approve such action then this method is not only appropriate but often effective. The methods of communicating with the key elected officials can include petitions, letters to the editor, personal contact and significant numbers of private citizens attending and speaking at public hearings. - Insure all technical requirements are complied with and key elements considered prior to a final decision being made. This is much more difficult in that it requires access to information and technical knowledge of both the process and specific points of law. Usually, these types of cases are not decided by elected officials but rather a matter of public servants enforcing an existing law or ordinance. The recent Wal-Mart request fell primarily into the second category and some of the first. Since the first announcement of the Wal-Mart request, members of the LIBPA Board of Directors have worked with both the elected officials and staff members of the City of Beaufort. LIBPA’s concern regarding the failure of the initial traffic study to even address our bridge capacity was expressed to the City of Beaufort and was given official support. To insure the LIBPA position accurately reflected the feelings of the community a survey was taken on the LIBPA web site to ascertain how the community felt regarding the proposed Wal-Mart. On February 11 the City of Beaufort Zoning Administrator denied the Wal-Mart application on the basis that it did not conform to the basic planned unit development agreement. Also, the extension of the accompanying property owner’s development agreement is still another matter to be resolved by Beaufort City Council. These are complicated issues but they are being faced by both LIBPA and the City of Beaufort in a cooperative manner. One thing is sure; the question of a Wal-Mart on Lady’s Island has not gone away and there will be similar challenges in the future. The manner in which this challenge was handled to date, by all concerned, could well serve as a model for the future. That is, to listen to the members of the community, make key information 100% public, operate with a positive spirit of cooperation and try very hard to avoid repeating the errors of the past.

The Military Factor:  It is healthy for all of us that reside in the Beaufort area to pause from time to time and take a close look at the economic effect of the military presence in our community. For example, together the Marine Corps Air Station, Marine Corp Recruit Depot and the Naval Hospital employ 6,500 active duty military personnel and 1800 civilians with an annual payroll of over $375 million. Families who visit the area to see their son or daughter graduate from recruit training at Parris Island are estimated to spend over $7 million annually in the local economy. The effect of the military on the local housing market is both complex and dynamic. The government provides a limited amount of housing on each of the local bases. In the past, every study of the military base housing indicated a requirement for an additional 500 homes to meet the needs of the Marines and Sailors and their families assigned to the bases. In response to this shortage the military joined with the civilian sector in a joint public – private venture to build additional government housing. The concept of such a venture is that the government provides the property and the civilian company provides the funding, builds the houses and provides the maintenance and management for a set period of time. The government guarantees a set percentage of occupancy. As a result of this program there are a total of 1,718 government homes now available to military families in the area. This quantity of homes appears to be capable of meeting the needs and desires of military families in that a home can now be assigned, without a waiting period, upon their arrival. In the past with insufficient government housing available and a booming housing market many military families chose to purchase or rent a house in the civilian community. Lady’s Island, with its reputation for high quality public and private schools was one of the favorite places for military families. With the reversal in the general housing market and the increase in the availability of government homes, logic would indicate a probable reduction in the number of military families choosing to be home owners in the local communities; at least for the near future. As can be seen by the data contained in this article the military presence in northern Beaufort County constitutes a very large economic factor in our community. It should also be noted that it is a privilege and a pleasure to have them as neighbors and we are very proud of the contribution they make to our nation.

The Impact Of Poverty On Beaufort's Public Schools: When the board of aldermen or city council of Garner, North Carolina threatened to withhold a Certificate of Occupancy for a new school until the School District reduced to 40% or less the number of children qualified for the Federal Free or Reduced Cost Lunch Program assigned to each of the schools within the city limits – it caught our attention. Examples of those who are qualified for this program are the children of a family of 4 with an annual income less than $26,845 for free lunches and a family of 4 with an annual income less than $38,203 for reduced cost lunches. The story behind the story is that the aldermen believed that the more affluent parents were choosing to live elsewhere because of the poor reputation of their schools based on low test scores. The local realtors thought the homes in Garner were bringing lower prices due to the school situation. The low test scores were thought to be directly attributable to an excessively high “school poverty level.” The concept of a school “poverty level” came from a 1999 Wake County School District Evaluation and Research Department paper which defined a school’s “poverty level” as being the percentage of students eligible to receive free or reduced lunch. The study indicated that “Students’ achievement showed sharp declines when the school poverty concentration rose above 40%”. The reasons for this included teachers spending increased time on disciplinary problems and difficulty in attracting quality teachers in high poverty level schools. The report also indicated that students did academically better in a blended (affluent and less affluent) school when the “poverty level” did not exceed 40%. The Wake County School District accepted the general findings of the study but is struggling to find practical ways to keep the individual school “poverty level” under 40% since lower income housing is often centralized and can overwhelm a school attendance area. This is especially true in the case of neighborhood schools. The situation brings to mind two questions. (1) Is it true that when a school exceeds the 40% “poverty level” student achievement begins to decline? (2) Do Beaufort County public schools validate or refute this theory? To find the answers to this question the school comparative analysis provided by www.schooldigger.com was used to compare our public schools. The comparison was based on the percentage of the school population eligible for free or reduced price lunch and the individual school’s state ranking based on the combined total of the school’s average math and English test scores. The following chart sets forth, for the public schools north of the Broad River, the state ranking and the percentage of the student population eligible for free or reduced price lunch.                                 Based on the data set forth in the above charts it would appear there is a correlation between the “poverty level” of a school and its test scores. It also would appear, as shown in the case of Lady’s Island Elementary, that to some degree the poverty effect can be overcome through a combination of positive factors such as great teachers and innovative programs. However, the simple fact is that over 50% of all students attending Beaufort County schools are eligible for free or reduced lunches. That is a fact of life regardless of being designated a “wealthy” county for purposes of state school funding.

The Increase In Real Estate Inventory Is Slowing Down: by Everett Ballenger, President, Beaufort County Association of Realtors and BIC/Operating Principle Keller Williams Realty Ballenger Associates A basic fact of real estate is that the larger the inventory of available homes on the market the more intense is the pressure for prices to come down in order to be competitive. To provide a quick check as to direction of the of the local real estate inventory the following chart shows, by area, the inventory on one day (February 15) as it was in 2007 and as it was the same day in 2008. Comparison of active single family homes listed for February 15, 2007 vs. February, 15 2008.                  As can be seen above, in all but one area, inventory has increased year on year. But there are some encouraging changes to these numbers. Last year at this time the overall rise from the previous 12 months was 20 %, so this year’s rate of growth has halved over the past 12 months. Also of note is the non gain on Lady’s Island, which over the past has lead the way in inventory growth. The Mossy Oaks drop, although great to see, is not such a major event, as it is a very established older area in the most part, with not a lot of undeveloped property available for building. The Port Royal figure is the largest swing, at the same time last year there was a 11% drop – so a total change of + 41% year on year. Some of this can be explained with annexing, but we are actually talking about only 21 more properties on the active market that creates this swing. We should see a gradual evening out of these figures through this year. As in 2007 we were comparing a correcting market to 2006, with the first half year being the tail end of the real estate boom period. Encouraging news on the national level is that inventory has leveled off the last 2 months of 2007. The “experts” are saying that the first half of 2008 will be fairly even, with a stronger second half - only time will tell. On February 20, 2008 the Beaufort County Association of Realtors MLS reported 134 sales pending. This includes all kinds of property, not just single family homes. Naturally this figure fluctuates day to day, but compared to last month when the sales pending number seemed to stabilize at around the 115 mark the market in general does seem to be rising! There is no real good reason why buyers should not be getting into the housing market at this time. Prices are probably as low as they will ever be (as can be seen from the chart), inventory is very good at the moment, and mortgage rates are very competitive.

A Snapshot Of Lady's Island Bridges: The question of the impact on Lady’s Island of a Wal-Mart or similar type of store has pointed out how much we, as a community, are dependent on our bridges. Recognizing this, perhaps a review of what the Northern Regional Plan transportation study reported in regard to our bridges is in order. Wood’s Memorial Bridge – This bridge is capable of efficiently handling 16,800 trips per day and by 2025 is projected to see a traffic count of 26,400 trips per day. Asking an older bridge, which must open for boat traffic on the Beaufort River, to handle 9600 more vehicle trips per day than it was designed for is simply not going to work. McTeer Bridge – By 2013 there is scheduled to be a second bridge parallel to the present McTeer Bridge and when this bridge is available, along with the widening of Lady’s Island Drive to 4 lanes, it is projected to be able to handle 33,600 vehicle trips per day. However, by 2025, based on a conservative growth projection there will be 34,200 vehicles crossing the bridge. So as the Wood’s Memorial Bridge becomes less and less the route of choice off of Lady’s Island due to traffic congestion, the traffic will shift to the McTeer Bridge. In 2013, the widened McTeer Bridge should be able to absorb the increased traffic and continue to do so until sometime around 2025. Even then it is projected to be only 600 trips per day over its capacity. How we keep the future traffic from overwhelming our bridges is up to us but it will not be accomplished without some very tough choices.

Lady's Island Planning Facts:  Living Close To The Water: More than half of Americans live within 50 miles of the Atlantic, Pacific, Gulf and Great Lakes coast on just a one fifth of the country’s land. (Center for Environment and Population) Increase In Developed Land: Each American today occupies almost 20% more developed land (housing, schools, and roads) than 20 years ago. By the late 1990’s 1.7 acres of land was being developed for every person added to the population. This (1.7 acres) is the equivalent of about 220 parking spaces or 16 basketball courts. (Center for Environment and Population)