[10.a. Consideration of an Ordinance Authorizing and Directing the Town of Hilton Head Island to Enter into an Intergovernmental Agreement Relating to South Carolina Local Revenue Services; to Participate in one or more Local Revenue Service Programs; to Execute and Deliver one or more Participant Program Supplements; and Other Matters Relating Thereto – Second and Final Reading - John Troyer, Director of Finance]

SEEING WE'LL BRING IT BACK AND WE'LL CONTINUE ON WITH UNFINISHED BUSINESS.

OKAY. YOU CONSIDERATION OF AN ORDINANCE OFF THE WRITING AND DIRECTING THE TOWN OF HILTON HEAD ISLAND ENTER INTO AN INTEGRAL INTERGOVERNMENTAL AGREEMENT RELATING TO SOUTH CAROLINA LOCAL REVENUE SERVICES.

TO PARTICIPATE IN ONE OR MORE LOCAL REVENUE SERVICE PROGRAMS. TO EXECUTE AND DELIVER ONE OR MORE PARTICIPANT PROGRAMS SUPPLEMENT. AND OTHERS RELATING SECOND AND FINAL READING JOHN TROYER THIS ITEM PRESENTED TO FINANCE ADMINISTRATIVE COMMITTEE ON JULY 18TH WITH A RECOMMENDATION TO FORWARD TO TOWN COUNCIL FOR APPROVAL.

THIS ORDINANCE WOULD ALLOW US TO ENTER INTO AN AGREEMENT THAT AGENCY TO CONTINUE THIS COLLECTION EFFORT. I DO HAVE WITH ME OUR REVENUE SERVICES MANAGER AND WE'RE AVAILABLE FOR ANY QUESTIONS AND THERE'S BEEN NO CHANGE FROM FIRST READING.

IF THERE ARE NO QUESTIONS ANY QUESTIONS I WOULD MOVE COUNCIL ,AUTHORIZE AND DIRECT THE TOWN OF HILTON HEAD ISLAND TO ENTER INTO THE INTERGOVERNMENTAL AGREEMENT RELATING TO SOUTH CAROLINA'S LOCAL REVENUE SERVICES EXCEPT EXCEPT OTHER THAN FAVORITE PLEASE RAISE YOUR RIGHT HAND. WHAT OTHER COMMENT? THANK YOU FOR THANK YOU TO ANY PUBLIC COMMENT. ALL RIGHT. WE'LL BRING IT BACK IN ANY

[11.a. Presentation by the Coastal Community Development Corporation – John Troyer, Director of Finance]

DISCUSSION. OKAY. ALL THOSE IN FAVOR PLEASE RAISE YOUR RIGHT. SOME OF NEW BUSINESS BY THE COUNCIL COMMITTEE DEVELOPMENT CORPORATION JOHN TROYER. THANK YOU, MR. MAYOR. WE HAVE A PRESENTATION FROM MR.

[01:15:01]

ALAN WOLFE. GOOD AFTERNOON EVERYONE. I'M THE CHAIRMAN OF THE COASTAL COMMUNITY DEVELOPMENT AND PRESIDENT OF RESEARCH GROUP. I GET TO DRIVE THIS PRESENTATION BUT THIS IS A PDF JUST SCROLL DOWN YOU GOT IT. THIS IS NOT THE ONE THAT WE REVIEWED WITH THE FINANCE AND ADMINISTRATIVE. THAT'S THE ONE THAT WAS SUPPOSED TO BE UP PROBABLY ON THE COMPUTER SOMEWHERE OR IT WAS ATTACHED TO OUR AGENDA TODAY RIGHT HERE THREE 2923. I CAN TAKE IT THROUGH 155 PAGES LIKE I THINK WHAT'S UP THERE? BUT I HAD A NICE BRIEF ONE THAT WE HAD REVIEWED WITH MR. THAT YOU'RE NAMING THE ONE THAT WAS THAT AND I GUESS THANK YOU ON AUGUST 15TH THAT CORRECT YES. YES YES.

THE POWERPOINT REPLY THAT RIGHT . RIGHT I'M SORRY I DON'T HAVE IT ON THE PDA ON THE BACK. YES THAT IT ALAN HAS 43 SLIDES AND IF PULLED IT OUT BASED ON SUFFERING JUST SOME IF YOU PUT IT UP ON ANTHONY KIM SO ONE MORE THING AND FOLDER AND YEAH WE CAN ROLL WITH THIS OKAY THANK YOU FOR HAVING US. WE EXPLAINED THE COASTAL COMMUNITY DEVELOPMENT CORPORATION IN SEPTEMBER OF LAST YEAR THE CHIMNEY COVE RESIDENTS WERE ISSUED NOTICES AND THE COMMUNITY WAS REMINDED OF HOW FRAGILE THE WORKFORCE MARKET IS. I THINK THAT CRISIS CAME A DIALOG WHICH SPARKED VISION AND BROUGHT US TO THIS REALITY THAT WE'RE SHARING WITH YOU TODAY TO EXISTING HOUSING FOR SALE IN OUR MARKET WITH THE INTENT OF IT BEING MADE AVAILABLE FOR RENT TO THE LOCAL WORKFORCE.

OUR APPROACH COMBINES LOCAL AND REGIONAL BANKS PROVIDING MORTGAGES ON THE BUILDINGS AND HOUSES WITH, ALTRUISTIC INVESTMENT FROM THE COMMUNITY BUSINESSES AND MUNICIPAL NEEDS TO CREATE A TRULY COMPREHENSIVE COMMUNITY APPROACH AND AFTER SIX YEARS OF STANDING HERE ADVOCATING FOR WORKFORCE HOUSING FOR OUR COMMUNITY I BELIEVE THE NEXT 10 MINUTES YOU'LL UNDERSTAND THAT WE HAVE A VIABLE SOLUTION FOR ADDRESSING THE SHORTAGE THAT OUR COMMUNITY FACES ARE DISTRIBUTED IN PRINTED VERSIONS FOR EACH OF YOU AS LONGER AND MORE CHEAPLY AS THE WHAT WE'LL COVER TODAY. BUT THAT DOCUMENTS IS COMPREHENSIVE REVIEW OF HOW THE COASTAL COMMUNITY DEVELOPMENT CORPORATION HAS PERFORMED WORK OF SECURING HOUSING FOR THE WORKFORCE FOR THE NEXT 99 YEARS.

OUR PRACTICE CAN DO SO AT THE OF COUNCIL CONFERENCE PLAN FROM OCTOBER 2020 AND AS YOU'LL SEE OUR EFFORTS TIMES SEEM TO BE FINDING WORK FROM NOVEMBER 2022 AND INDEED THE FORMATION OF THE ABC IS A RESPONSE TO THE WORK THAT THE TOWN HAS DONE OVER THE SIX YEARS THAT BEEN UP THERE TALKING WITH COUNCIL. SO THANK YOU COUNCILMAN BROWN AND THE FINANCE ADMINISTRATIVE COMMITTEES FOR BRINGING US HERE AND THANK YOU MAYOR PERRY. AGAIN, WE'RE GOING TO GIVE YOU A HIGH LEVEL OVERVIEW OF OUR APPROACH AND ANSWER ANY QUESTIONS THAT YOU HAVE.

I'M HAPPY TO GO THROUGH ANYTHING THAT'S IN THE DOCUMENTS FOR YOU NOW IF THERE'S ANY CHANCE FROM THE PRESENTATIONS THAT WOULD BE HELPFUL.

BUT IT'S GOING GOING SO WHO WE ARE WE HAVE THE BOARD OF SEVEN COMMUNITY MEMBERS WITH EXPERIENCE AND NONPROFIT ADMINISTRATION FINANCE, HOUSING TAX CREDIT PROGRAMS, DEVELOPMENT CORPORATE AND REAL ESTATE LAW AND ENTREPRENEURSHIP.

IT WAS THANKS TO THE WORK OF THIS BOARD THAT YOU SEE ON THE SCREEN THAT WE'VE ABLE TO GET THIS THING TO WORK SO QUICKLY. WE FILED FOR A NONPROFIT STATUS OF 2023 AND RECEIVED THE IRS APPROVAL IN MAY OF THIS YEAR. YOU SEE OUR MISSION ON SCREEN THERE WE SIMPLY SEEK TO INCREASE THE AVAILABILITY OF HOMES FOR OUR LOCAL REGIONAL WORKFORCE BY NUMBER ONE PRESERVING EXISTING HOUSING NUMBER TO REDEVELOP AN EXISTING

[01:20:01]

PROPERTY AND THEN LOOK AT NEW DEVELOPMENT OPPORTUNITIES TO THE DEMAND OF OUR WORKING RESIDENTS. YOU KNOW WE HAVE A NUMBER OF THAT WE'VE IMPLEMENTED TO ENSURE THAT THE WORKFORCE HOUSING GUIDELINES WERE MET AND YOU CAN SEE THE FIRST ONE WOULD BE TO PROVIDE RENTS BETWEEN 50 AND 120% CONVERSION TAKES THAT UP TO 150% AND TALKING TO LOCAL BUSINESSES WE UNDERSTAND THAT 120% OF THE DEMAND IS GOING TO SATISFY THE NEED ACROSS ALL THE UNITS WILL BE DEEMED RESTRICTED . OUR GOAL IS 99 YEARS THAT'S SOUTH CAROLINA TOP END THAT WE CAN GET AND THAT WOULD ALSO BE IN LINE WITH ANY FUNDING SOURCE REQUIREMENTS. WE HAVE AN APPLICATION PROCESS THAT MOST IMPORTANTLY HAS BEEN VETTED FOR FAIR HOUSING LAW REASONS AND WHAT WE CAN DO IS PRIORITY WORKERS WHO LIVE OR WANT TO LIVE IN THE COMMUNITY WITH WHICH THEY WORK. AND THEN THE LAST PIECE IS OUR FOCUS ON LONG TERM RENTAL AND PURCHASE OPTIONS FOR ALL RENTERS THE TOP TWO STRATEGIC PRIORITIES OF THE TOWN OF HILTON HEAD WHICH GROWTH MANAGEMENT AND WORKFORCE HOUSING. IN MANY CASES WE WOULD ABLE TO REMOVE SHORT TERM RENTALS FROM MARKET AND OF COURSE WE HAVE NO SHORT TERM RENTALS IN THE INVENTORY THAT WE MANAGE TO THE BEAUFORT COUNTY HOUSING NEEDS ASSESSMENT PRESENTED THESE NUMBERS WHEN WE START ALL OF THIS IN 2017 THE PROJECTED 202,335 RENTAL UNITS NEEDED AT THE DIFFERENT HOMES IN RENTAL SPOTS THAT YOU SEE ON THE SCREEN. WE BELIEVE THAT THOSE NUMBERS CANNOT BE OBTAINED AT ISLAND SIMPLY THROUGH DEVELOPMENT AND REQUIRING ALTERNATIVE APPROACH AND THAT'S REALLY WHAT HAS BROUGHT US HERE. WE HAVE BUILT AND WE'VE BUILT CVC SEEKS TO LEVERAGE A HOST OF COST CURVE BENDING STRATEGIES.

WE'VE BEEN WORKING FEVERISHLY TO INCLUDE THOSE. THE FIRST ONE IS THE DEVELOPMENTS OUT OF IT. IT IS A NONPROFIT WE STARTED ON THIS PATH ALMOST A YEAR AGO.

WE WEREN'T SURE IF THIS WOULD BE A FOR PROFIT OR NONPROFIT FUTURE AND WE REALIZED THAT THAT DEVELOPMENT PROFIT HAD TO COME OFF PRETTY TO MAKE THE NUMBERS WORK AND THEREFORE IT HAS THE SECOND ONE IS PROPERTY TAX ABATEMENT. THE SOUTH CAROLINA LEGISLATURE PERMITS A PROPERTY TAX ABATEMENT ON UNITS THAT SERVE BETWEEN 50 TO 120% OF AMI.

IN THE INSTANCES THAT OUR UNITS WOULD BE ABOVE THOSE PERCENTAGES THAT WOULD BE PAINFUL PROPERTY AND THEN WE'VE ALSO TAKEN THE TIME TO ENGAGE LOCAL BUSINESSES AS WELL AS BANKS AND THERE'S BEEN SOME STATEMENTS ABOUT MARKET RATE THAT'S NOT THE CASE AT ALL.

WE'VE MET WITH COASTAL, REGIONAL AND LOCAL BANKS THAT ARE WILLING TO PROVIDE LOW MARKET MORTGAGES WHICH IS WHY WE CAN MAKE THIS VERY DIFFICULT TASK.

IT'S WE'RE HOLDING OUR COMMENTS. YES.

THANK YOU KNOW OUR INTENTION IS TO REVIEW THE MODEL THAT'S PRINTED OVER THERE ON THE CORNER OF THE TABLE AND THAT IS CERTAINLY GOING TO HAVE TO BE PULLED UP BEFORE I GET INTO THAT BECAUSE IT'S NOT YOU KNOW, THIS IS FROM MARCH ABOUT SIX MONTHS OLD I CAN GO BACK ON MY EMAIL FORWARDED TO SOMEONE THIS THING YES THERE IF THERE ARE HARD COPIES OF US MAYBE IT WOULD BE HELPFUL FOR US TO HAVE THOSE HARD COPIES. NOW AS YOU GO THROUGH THE REASON BUT IF WE CAN GET THOSE THAT WOULD BE HELPFUL. COULD I HAVE JUST A MOMENT OF YOUR WISH LIST JUST? HAVE THANK YOU ALL OKAY. PLEASE ACCEPT YOUR APOLOGY.

ALICE SUFFERED FROM PARKINSON'S BUT MY TREATMENT. YEAH SHE'S THERE I'M NOTING HE'S DONE REALLY WELL UP THROUGH PAGE NINE OF WHAT WE'VE BEEN HANDED

[01:25:02]

LOOKING AT PAGE TEN WHICH SAYS HOW ARE WE DOING IT IN OTHER PHASES YOU KNOW AGAIN THAT PRINT PRESENTATION WE HAVE IS LITTLE MORE THAN YOU PROBABLY WANT ME TO COVER BY SLIDE BUT IT WAS REALLY THERE FOR REFERENCE AS YOU ALL DIG INTO THIS WITH ANY QUESTIONS IF YOU ARE FULL SCOPE OF EXACTLY WHAT WE'RE TRYING TO DO. MARK, HAVE YOU RECEIVED SEE THAT REPORTED ON SO WE TAKE A QUICK FIVE MINUTE BREAK. EXCEL SHEET AS EXCEL SHEET.

YEAH, WELL WHY DON'T IF WE COULD GET EVERYBODY TO TAKE THEIR I'LL BE GREAT BUT EVERYBODY GET IN THERE IT COMFORTABLE ALL RIGHT IF YOU WOULD LIKE TO START OVER FEEL FREE TO BUT IF YOU FEEL LIKE YOU MOVE FORWARD AND THAT'S THAT'S GREAT ALSO WE'LL PICK UP HERE WE WERE TALKING ABOUT COST CURVE BENDING STRATEGIES AND I DIDN'T WANT TO MISS ONE OF THE MOST IMPORTANT ONES WHICH IS THE ALTRUISTIC INVESTMENT PIECE OF THIS TO ACCESS LOW COST CAPITAL. THE BOARD HAS DEVISED A PLAN GO OUT AND SPEAK WITH GATED COMMUNITIES, BUSINESSES AND COMMUNITY FOUNDATIONS TO LOOK FOR LOW COST CAPITAL.

AND WE'RE HAPPY TO REPORT WE'VE RECEIVED SOFT COMMITMENTS OF OVER $2 MILLION ALREADY WHICH WILL FAR AND AWAY HELP US ACHIEVE WHAT WE'RE TRYING DO BEYOND THIS MODEL THAT WE'RE TALKING ABOUT HERE TODAY. WE ARE HERE TODAY TO TALK THE REQUEST FOR $600,000 OF FUNDS TO ASSIST US IN IMPLEMENTING OUR FIRST PHASE OF ACQUISITIONS WHICH WOULD INCLUDE 13 UNITS ON HEAD ISLAND. THE OVERALL BUDGET AS YOU SEE IS $3 MILLION MEANING FOR EVERY $1 OF MUNICIPAL FUNDING WE WILL SECURE $4 OF PRIVATE FUNDING THE CDCR WOULD RECOMMEND TO REIMBURSE THAT PROGRAM IN WHICH THE $600,000 OF COMMITTED FUNDS ARE REIMBURSED AS WE PURCHASE UNITS VERSUS HAVING OVER AS A ONE TIME GRANT THAT IS CAPITAL WOULD BE USED STRICTLY FOR ACQUISITION ACQUISITION AND AS YOU'LL SEE WE HAVE FULLY FUNDED ADMINISTRATIVE BUDGET FOR THE NEXT 15 PLUS MONTHS. IT WOULD NOT BE USED ADMINISTRATIVE PURPOSES.

I WOULD LIKE TO INTRODUCE DAVE WETMORE WHO'S GOING TO REVIEW THE MODEL WHICH HE SPENT 17 VERSIONS ON FINALLY TUNING IN. SO IT'S READY FOR YOU TODAY, DAVE, AS A BOARD MEMBER OF THE CDC, HE'S PASSIONATE IN HIS ADVOCACY SOLVING THIS CHALLENGE AND HIS KNOWLEDGE AND INSIGHT HAVE BEEN INSTRUMENTAL IN THIS AT THIS POINT. SO DAVE AND THANK YOU ALAN.

THANK YOU MAYOR PERRY AND COUNCIL MEMBERS THAT YOU MENTIONED MY NAME IS DAVE WETMORE, A 25 YEAR RESIDENT OF LONG COVE . I'M A RETIRED CPA EXECUTIVE AND I'M ABOUT TRYING TO SOLVE THIS PROBLEM. THE CONCEPT WE CAME UP WITH THE ONLY WAY YOU CAN MAKE THIS THING WORK IS YOU'VE GOT TO BEND THE COST.

PRIVATE DEVELOPERS ARE NOW DOING IT IN A WELL WORKFORCE HOUSING REQUIRES A 30 TO 50% RETURN SO IF YOU PUT A 50 TO 50% RETURN IN MODEL IT BASICALLY DOESN'T WORK.

YOU CAN'T DO IT. SO WE CAME UP WITH THIS THAT WE WOULD BUY THE STATE PROPERTIES AND WE WOULD FINANCE THEM THROUGH ALTRUISTIC INVESTMENT SO WE'RE ASKING INVESTORS TO TAKE A 3% RETURN IN THE HOPES OF TAKING LESSER RETURN THAT IT WOULD HELP SOLVE THE PROBLEM IT POTENTIALLY CAN AFFECT THEIR LIFESTYLE AND PROBABLY MORE IMPORTANTLY THEIR PROPERTIES NET WORTH OF PROPERTY VALUES A PERIOD OF TIME IF IN FACT OUR ISLAND BECOMES LESS DESIRABLE OUR PROPERTY VALUES ARE GOING TO SUFFER. SO THE CONCEPT WE TOOK THE MODEL WE TOOK MLS DATA SO THIS IS REAL AND THIS EXISTS IN TIME BUT IT WON'T NECESSARILY BE THE PROPERTIES IT WILL PURCHASE BECAUSE MLS EVERY DAY IS THAT WE NEEDED TO GET A HANDLE ON WHAT PROPERTIES WERE ON THE MARKET AND WE USE BUT AT ANY ONE POINT IN TIME YOU CAN WHAT 600 PROPERTIES THAT CHANGED HANDS YOU NO CONDOS LOST LAST YEAR IN THE 200 TO $300000 PRICE RANGE AND SO JUST BASED ON 1313 OUT OF 600 IS NOT A SIGNIFICANT ITEM.

ALAN I AM GOING GOOD SO WE'RE ACTUALLY REAL DATA FOR THIS SO WE WE USED ACTUAL RENTS THESE RENTS ARE GENERALLY BELOW MARKET THAT'S WHAT WE'RE AFTER .

WE'RE INCREASING THOSE RENTS IN THE MODEL ONLY IT FOR .17 PERCENT PER YEAR SO THE MODEL WORKS THE 4.17 IS MAGICAL BECAUSE IT IS THE AVERAGE RATE OF APPRECIATION ITS VALUE FOR COUNTY REAL ESTATE THE LAST TWO YEARS IF YOU TOOK THAT NUMBER FOR THE LAST FIVE YEARS IT'S IN

[01:30:08]

EXCESS OF 50%. IF I'M GIVING YOU LAST TEN YEARS IT'S IN EXCESS OF 10%.

SO IT'S A VERY REALISTIC ASSUMPTION AND IF YOU TALK TO OUR RENTERS ON THE ISLAND AND SAID WE'RE ONLY GOING TO INCREASE RENTS 4% OVER THE NEXT TEN YEARS, I THINK YOU MIGHT SEE SOME VERY HAPPY TENANTS ALSO PART OF OUR GOAL IS TO RECEIVE COST CONCESSIONS FROM EVERYBODY WHO PARTICIPATES IN THE PROCESS. SO PROPERTY IS GENERALLY AVAILABLE AT 1% PER YEAR. WE HAVE RECEIVED A CONCESSION FROM A WELL KNOWN PROPERTY MANAGER TO REDUCE THAT TO 10%. WE BASICALLY TO ANOTHER ONE THIS MORNING HE WAS WILLING TO REDUCE IT TO 8% IN THE FIRST YEAR AND 9% IN THE SECOND YEAR. BUT BASICALLY EVERYBODY THAT WE DO BUSINESS WE'RE TO ASK THEM TO PUT SOME SKIN IN THE GAME. THERE'S SMALL MANAGEMENT PROCEDURE SO WE CAN HELP FUND THE RUNNING OF THE ORGANIZATION REPAIRS AND I'VE HEARD THIS MENTIONED SEVERAL TIMES THE DAY THAT THE TOWN WOULD BE SOMETIMES RESPONSIBLE FOR REPAIRS AND IT'S JUST AFTER ALL THE REPAIRS AND MAINTENANCE THAT'S RESPONSIBLE, EASY AND THERE'S INDUSTRIES STANDARD REPAIRS. MAINTENANCE GENERALLY ARE 12% OF RENTS BECAUSE WE ARE GOING TO INSPECT THE RENTAL PROPERTIES WE'RE ONLY GOING TO BUY PROPERTIES THAT WE BELIEVE GET OUR QUALIFICATIONS. WE'RE NOT GOING TO BUY A PROPERTY WE CAN EITHER BUY IT IF THE MARKET RATE OR WE CAN PUT ENOUGH MONEY INTO IT TO, GET IT UP TO OUR STANDARDS AND HAVE THAT GET THE MARKET RATE. SO FOR THE FIRST YEAR I MEAN IT'S A 3% SECOND YEAR AT 6%, THIRD YEAR IT'S 9% BECAUSE WE'RE GOING TO DO ALL THAT.

WE'RE GOING TO BUILD UP WE NEED TO DO OWNERS, INSURANCE REGIMES THESE ARE BUILDING THERE AS YOU PROBABLY KNOW INSURANCE ON TOP HAVE GONE THROUGH THE ROOF. WE'VE GOT THAT SO THAT WE'VE REFLECTED A LOT OF THE CHANGES REFLECTED IN LAST YEAR AND NOW WE'RE HOPEFUL THAT THE INSURANCE MARKET WILL COME DOWN BUT AS YOU CAN SEE FROM THE MODEL WE ARE THE POSITIVE CASH FLOW WE CAN PAY OFF OUR INVESTORS AND AT THE END OF TEN YEARS WE ARE ABLE TO PAY BACK OUR RETURN ON INVESTMENTS IN OUR INVESTMENT THE 3% RETURN AND DEPENDING ON THE RATE OF APPRECIATION A POTENTIAL UPSIDE IF RATES ARE AN EXTRA 4.7%.

SO WE'VE RETAINED THE RESPONSIBILITY TO MAKE THIS THING WORK.

WE'RE COMMITTED TO HAVING REASONABLE RENTS FOR OUR RENTERS WE BELIEVE WE HAVE A FINANCIAL MODEL THAT MAKES SENSE BASED ON REAL DATA MORE OF SO THIS IS THE SOURCE OF FINANCING BASICALLY WE HAVE TALKED TO A NUMBER OF INDIVIDUAL ALTRUISTIC INVESTORS COMMUNITY FOUNDATION OF THE LOW COUNTRY IS LIKELY GOING TO BE ONE OF THOSE INVESTORS WE TALKED TO LOT OF INDIVIDUALS OF A LOT OF THOSE INDIVIDUALS WANT TO SEE AN INVESTMENT FROM THE CAPITAL AND JUST HAPPY PEOPLE WE'VE PUT THE RESPONSIBILITY TO ADDRESS THIS PROBLEM. IT'S BEEN IDENTIFIED AS A SIGNIFICANT PROBLEM IN THE COMMUNITY FOR A LONG TIME. WE THINK WE HAVE A SOLUTION THAT CAN START TO ADDRESS IT.

IT DOESN'T ANY DEVELOPMENT IT DOESN'T INVOLVE ANYTHING THAT WE HAVE TO DO ALL WE HAVE TO DO IS SECURE CURRENTLY EXISTING SO I'LL BE HAPPY TO ANSWER ANY QUESTIONS ON THE FINANCIAL SIDE OF IT. OKAY, LET'S FINISH UP WITH THE PRESENTATION AND WE'LL COME BACK WITH THOSE QUESTIONS. I'LL COVER A LOT OF GROUND TO DATE SINCE OUR INCEPTION WE HAVE GENERATED $225,000 OF DONATIONS 125,000 THROUGH BUSINESSES AND INDEPENDENTS ALONG WITH $100,000 GRANT FROM THE COMMUNITY FOUNDATION BELOW COUNTRY WE HAVE LINKS TO THE GENEROUS GENEROUS WORK OF ONE OF OUR BOARD MEMBERS AND THEIR FOUNDATION CLOSE ON THREE UNITS ALREADY HERE ON HILTON HEAD ISLAND ARE THE FIRST TWO OR THINK THEY HAD EXISTING WORKERS ALREADY IN PLACE WE WERE TO PRESERVE THOSE OPPORTUNITIES FOR THOSE WORKERS.

THE THIRD ONE WAS ON OUR SIDE. YOU KNOW, WE'RE SOMEONE WHO MOVED TO TENNESSEE AND THEN THE PROPERTY IS KNOWN TO THE WIDER MARKET. WE WERE ABLE TO SECURE IT AND INVITE A LOOK WORKER TO BE THE TENANT WHO WAS LIVING AT THAT EXTENDED STAY HOTEL APARTMENT TYPE PLACES LIKE MCDONALD'S AND BLUFFTON. SO I'D LIKE TO SHARE THAT TESTIMONIAL QUICKLY WITH YOU OUT HERE FROM COLUMBIA, SOUTH CAROLINA ABOUT A YEAR A HALF

[01:35:08]

AGO I WORKED ON THE ISLAND AT ONE OF THE LOCAL LAW FIRMS. I AM A PARALEGAL AND WANTING TO PURSUE MY EDUCATION AND GET MY LAW DEGREE EVENTUALLY AND BECOME AN ATTORNEY.

THERE WAS NOTHING AT THE TIME MOVED IN TO THE ONLY THING I FOUND WHICH WAS OUT IN BLUFFTON AND RENT WAS JUST VERY EXPENSIVE TO BE IN A STUDIO APARTMENT A LOT OF EMPLOYERS ON THE ISLAND NEED QUALIFIED YOUNG ENERGETIC PEOPLE AND THEY'RE NOT LOOKING TO HELP THEM BECAUSE THEY CAN'T AFFORD THEY'RE MOVING OFF ISLAND AND MOVING FURTHER AWAY BLOCKCHAINS YOU KNOW, JUST ON THE OTHER SIDE OF THE BRIDGE HOWEVER COMING ONTO THE ISLAND AND LEAVING THE ISLAND AT THE EXACT SAME TIME EVERY DAY IT COULD BE AN HOUR TO HOUR COMMUTE EVERY MORNING. SO WHEN YOU START FIGURING OUT HOW MUCH TIME YOU'RE SPENDING COMING AND FORTH YOU'RE NOT GOING TO MAKE THAT DECISION. YOU'RE GOING TO FIND ANOTHER JOB SOMEWHERE ELSE. SO THIS IS A WAY TO BRING SOME OF THOSE PEOPLE BACK AND TO HELP THE BUSINESS COMMUNITY THRIVE. I WANT TO SAY THIS I WANT YOU TO SEE THIS WELL, HAD A BRAND NEW UNIT FOR US. IT'S ONE BEDROOM, ONE BATH.

IT'S OVERLY BIG. IT'S ABOUT 800 SQUARE FEET. MADISON QUALIFIED FINANCIALLY AND SHE'S THE QUINTESSENTIAL CANDIDATE WE'RE LOOKING FOR. THAT'S REALLY NICE.

IT'S A GREAT SPACE. THERE'S A WALK CLOSET, NEWER FURNISHINGS IN BOTH THE LIVING ROOM WITH THE BUILT IN BOOKSHELVES AND THEN APPLIANCES AND THE KITCHEN.

IT'S JUST A GREAT SPACE TO LIVE IN MADISON I'M YOUR NEIGHBOR. I LOVE THE NEIGHBORHOOD.

YEAH, IT'S VERY EXCITING. THESE GUYS ARE TRYING TO PUT TOGETHER 4050 UNITS AND THEY'RE TRYING TO MAKE IT WHERE THE CAN AFFORD TO LIVE ON HILTON HEAD AND WORK ON HILTON HEAD.

I'M GOING TO BE PAYING JUST THE FLAT 600 A MONTH AND I'M CLOSER TO WORK SO GAS I'LL BE SAVING ON TIME I'LL BE SAVING TIME IS MORE VALUABLE THAN ANYTHING IN THE WORLD BEING ABLE TO A PART OF THIS PROGRAM IS SAVING ME SO MUCH MONEY THAT WAY I AM ABLE TO CONTINUE TO WORK AND NOT HAVE TO LEAVE HILTON HEAD I CAN STAY IN THIS AREA, INVEST OR IN THE COMMUNITY, GET MORE INVOLVED IN THE COMMUNITY AND NOT HAVE TO PAY $3,000 WHICH UNFORTUNATELY IS NOT AFFORDABLE FOR YOUNG PROFESSIONALS LIKE MYSELF. SO I'M EXCITED TO JUST GET EVERYTHING UNPACKED, GET EVERYTHING WHERE IT NEEDS TO GO AND JUST START FROM THIS NEW BEGINNING. SO THANK YOU FOR LETTING ME SHARE THAT.

MAYOR PERRY IT'S A NICE WIN FOR ONE OF OUR FIRST THREE UNITS THAT WE WERE ABLE TO PURCHASE TODAY. WE WOULD LIKE THE SUPPORT OF THE TOWN HALL AND COUNCIL FOR OUR REQUEST FOR THE $600,000 FROM THE CURRENT FISCAL BUDGET I BELIEVE WAS ALLOCATED THE $3 MILLION FOR WORKFORCE HOUSING. WE BELIEVE WE ARE BECAUSE OF THE ISSUES UP ON THE SCREEN IN THE BEST SPOT TO PROVIDE AN IMMEDIATE OPPORTUNITY THAT SUPPORT WITH A STRATEGY WHICH SUPPORTS THE GROWTH MANAGEMENT CONCERNS OF OUR TOWN THE 99 YEAR COVENANTS THAT ARE TIED TO MEDIAN PROVIDE A LONG RANGE SOLUTION NOT A SHORT TERM SOLUTION. WE HAVE A PLAN TO PRIORITIZE HOMEOWNERSHIP WHEN SOMEBODY EARNS OUT OF AN INCOME BRACKET BECAUSE THEY'VE MADE MORE MONEY IN THEIR JOB THAT IS A HUGE WIN AND WE HAVE A PLAN TO PROVIDE A RUNWAY FOR THOSE FOLKS TO BUY THE UNIT THAT THEY'RE LIVING IN OR ANOTHER ONE FROM THE INVENTORY ALONG WITH THEIR OPPORTUNITY TO BUILD UP EQUITY TOWARDS THE DOWN PURCHASE PRICE TRULY AS A COMMUNITY SOLUTION WE HOPE THAT YOU ALL WILL JOIN US FOR THAT. SO ANSWERING QUESTIONS AND ANY QUESTIONS FROM COUNCIL JUST ONE THING MR. WOLF YOU MENTIONED THAT 50 TO 150% BUT ALSO WHAT ARE YOUR SLIDES.

THE COPY I HAVE IS PAGE EIGHT OF SHOWS. I'M NOT SURE WHAT PAGE IT'S ON HERE BUT THIS INDICATES THAT UNITS MUST BE RENTED AT DEFINED IMPLIES THAT 20% MUST BE AT 50% AM I? YES SO ARRANGE AND THEN 55% CAN BE UP TO 80% SO THAT 75% UP TO 80% AS OPPOSED TO THINKING OF THE HIGHER RANGE OF 150%. SO THAT PARTICULAR PRESCRIPTION AND WE CAN THANK THE GREENVILLE HOUSING FRONT FOR OPENING OUR EYES TO IT IT'S THE IRS FAIR, HARVARD LAW AS WELL AS THE STATE LEGISLATURES FOR THE PROPERTY TAX ABATEMENT.

SO ONLY IF YOU OWN UNITS THE SWATHS IN THOSE RATIOS CAN YOU QUALIFY FOR THE PROPERTY TAX ABATEMENT AGAIN ANYTHING THAT WOULD BE OVER THAT WE WOULDN'T BE APPLYING FOR THE PROPERTY TAX ABATEMENT WHICH IS DONE THROUGH COLUMBIA AND HONORED BY THE COUNTY.

SO 75% OF THE UNITS WOULD BE UP TO 80%. YES.

AND EXACTLY THAT IN THIS 13 INCH MODEL ANY TIME HAVE A PROPERTY TAX PAYMENT AND IF THERE'S MUNICIPAL FUNDS THAT'S WHAT WE'RE GOING TO DO. WE WOULD OBVIOUSLY SERVE THE LOWEST ENDS OF THE SPECTRUM AND THEN ALSO THE RESTRICTED ARE GOING TO GO IT'LL BE RESTRICTED

[01:40:04]

FOR UP TO 99 YEARS WHICH IS THE MAYOR ACTUALLY CAN PROVIDE SO THAT WILL EXCEED THE CURRENT ELEMENT OF LANGUAGE ABSOLUTE I MEAN THAT'S THE INTENTION OF THE OF THE NONPROFIT.

THAT'S CORRECT. THE ONLY THE ONLY COVENANT THAT WE'RE REALLY PRIORITIZES IS ENSURING THE BANK NEEDS TO HAVE BECAUSE THEY'RE PUTTING MORTGAGES ON THE PROPERTIES A CLEAR PATH THAT IF THERE WAS A DEFAULT THEY COULD REMOVE THE COVENANT FOR THAT PURPOSE.

AND CAN YOU SAY A LITTLE BIT MORE ABOUT THE RUNWAY A PROPERTY OWNERSHIP? YEAH, WE WE LOOK AT IT AS A 3 TO 5 YEAR WINDOW IF SOMEBODY HAS EARNED OUT OF THE INCOME BRACKETS AND EVEN IF THEY HAPPEN TO BE IN THE SAME INCOME BRACKET AND THEY WANT TO BUY THE UNIT THAT THEY'RE IN, WE'VE SET ASIDE ROUGHLY 2000 TO 20 $500 PER YEAR IN OUR MODEL THAT CAN BE USED TOWARDS A REDUCED PURCHASE AND BECAUSE OUR MODEL ONLY DEMANDS OF 4.17% THE 20 YEARS ORACLE AVERAGE WE CAN OFFER A SALE PRICE THAT'S WELL BELOW MARKET LIKELY IF YOU THE PROPERTY VALUES CONTINUE TO RISE THAT COULD HAPPEN AND THE RETURN TO INVESTORS IS OVER A TEN YEAR PERIOD. YEAH THAT'S CORRECT. AND INVESTORS A STRANGE WORD.

YEAH. FROM THE BUSINESS SIDE IT SOUNDS INVESTMENT THE CDC HAS DRAFTED DISCLOSURE DOCUMENTS AND A PROMISSORY NOTE AS THE VEHICLE TO COLLECT DEBT AND SO IT'S REALLY NOT AN INVESTMENT. YOU CAN'T INVEST IN A NONPROFIT WE USE THE TERM LOOSELY AROUND INVESTMENT BUT IT'S REALLY A PROMISSORY IT'S A DEBT INSTRUMENT.

THANK YOU. ANOTHER COMMENT QUESTIONS. YES, THAT'S A UM.

WELL, THANK YOU ALAN FOR YOUR PRESENTATION. I KNOW THERE'S NOT A LOT OF WORK AND THOUGHT HAS GONE INTO THIS SO I DON'T AGREE AND THERE ARE A NUMBER OF REASONS WHY BUT MY FIRST ASK YOU A QUESTION IF THERE WAS SOMEONE WHO HAD THAT RUNWAY TO HOME OWNERSHIP YOUR PROGRAM AND YOU HAVE A 99 YEAR OR THEREABOUTS COVENANT ON THE PROPERTY, WHAT DOES THAT DO TO THEM? IT SURVIVES SALE. IT SURVIVES THE TIME HORIZON WE LEARNED IN OUR WORK PRIOR TO THROUGH THE BUSINESS WORKFORCE COALITION WE STARTED ASPEN.

THEY PUT A 25 YEAR DEED RESTRICTION IN PLACE FOR WORKFORCE HOUSING IN THE LATE EIGHTIES AND THEN YOU KNOW, 25 YEARS LATER THEY ALL JUMPED TO MARKET PRICE AND THEY SOLD AT THE TOP OF THE MARKET AND THERE WAS NO WORKERS LIVING IN A MINUTE AND DIDN'T WORK.

SO WE'VE TAKEN A LONGER HORIZON AND ENSURED THAT BASED ON THAT FAILURE THAT THE COVENANT WILL TRANSFER OVER ANY SALES. DO THEY HAVE ANY OPPORTUNITY FOR HOME EQUITY GROWTH? YES THERE IS ABSOLUTELY JUST AT THE RESTRICTED APPRAISAL SIDE AND ALSO DEPENDING AM I THE FAMILIES WERE TO DOUBLE THEY'D HAVE A LOT OF EQUITY OPPORTUNITY INCREASE.

THAT'S CORRECT BUT IT IS ALL TIED TO AMI. IT WOULD BE RESTRICTED THAT LEVEL OF OKAY LET ME JUST START AND THERE WAS A CORRECTION THAT SOMEONE WAS TRYING TO MAKE WITH REGARD HOME MAINTENANCE AND REPAIRS. I THINK THAT THE POINT THAT WAS BEING MADE IS THAT THERE'S A REQUEST TO BE ABLE TO UTILIZE FUNDS THROUGH OUR TOWN OF HILTON HEAD FOR MAINTENANCE PROGRAM. I EXCUSE ME I HAVE A COMMENT THAT WAS OFFERED THAT WAS POINTED OUT DURING ONE OF OUR EARLY MEETINGS I THINK IT WAS IN MAY WITH A COUPLE OF TOWN MEMBERS IN WHICH THEY SAID THAT THAT WAS AN OPPORTUNITY THAT'S NOT CURRENTLY AVAILABLE TO BE USED A PROGRAM LIKE OURS. BUT THEY WERE BEING SUGGESTED THAT IT MAY BE A SHORT STEP TO MAKE OUR PROGRAM ELIGIBLE FOR IT BUT IT'S CERTAINLY NOT A REQUIREMENT AND IT'S NEVER BEEN PROPOSED FROM OUR SIDE. OKAY.

AND BECAUSE ARE OUR CONCERNS RIGHT THERE LIMITED IN SCOPE? NO IDEA.

AND ONCE WE HAVE SPENT THOSE THERE IS NO PROVISION FOR THAT TO LIVE ON AS I UNDERSTAND SO THOSE MAINTENANCE FEES ETC. ARE WERE PUT INTO PLACE WITH A ARPA FUNDS TO HELP RESIDENTS ON THE ISLAND WHO HAVE BEEN LIVING WITHOUT PROPER ROOFS, DOORS AND WINDOWS ON THEIR HOME AND AND WE DON'T WANT TO SEE THOSE FUNDS DILUTED ARE THOSE PROPERTY OWNERS ON ISLAND CURRENTLY SO A NOTICE IN THE PAPERWORK ALSO THAT THERE IS A PREFERENCE TO HILTON HEAD ISLAND SLASH BLUFFTON SO WHAT ASSURANCES ARE THERE THAT THIS IN FACT IF THIS CAME TO FRUITION AND $600,000 WERE GIVEN TO A NONPROFIT WITH NO PUBLIC EQUITY OWNERSHIP AND IT ENDED HOW COULD WE ENSURE THAT THESE ARE HILTON HEAD ISLAND RESIDENTS WHO ARE TAKING ADVANTAGE THAT WE'RE HELPING YOU KNOW THE RESTRICTION IN THIS CASE WOULD APPLY THAT IT WOULD ONLY BE ELIGIBLE WORKERS ON HILTON HEAD ISLAND TO THE EXTENT THAT THERE ARE WORKERS

[01:45:01]

WHO NEED THE HOUSING AT WHICH POINT IF THERE WAS NOBODY APPLYING ANY LONGER THAT WAS WORKING ON HILTON HEAD ISLAND, I COULD SEE AN OPPORTUNITY FOR THAT TO TO A BUSINESS THAT HAS AN EMPLOYEE WORKING HERE BUT SOMEBODY THAT'S LIVING CURRENTLY OFF ISLAND IS AN OPPORTUNITY FOR THEM TO COME TO THE ISLAND BUT IT WOULD THOSE WHO LIVE AND WORK ON HILTON HEAD FIRST. IS THAT WRITTEN INTO YOUR DOCUMENTS? YES, WE HAVE SIX PRIORITIES. THE FIRST PRIORITY IS FOR ANYONE WHO HAS BEEN DISPLACED WHERE WILL IMMEDIATELY FACE DISPLACEMENT FROM THEIR CURRENT HOME OF RESIDENTS SEE THE CHIMNEY COVE CRISIS. THAT'S HOW WE GOT THERE. ON THE SECOND ONE WOULD BE FOR ANY BUSINESS WHO WOULD HELP US AS AN AFFILIATE SPONSOR AND HELP PROVIDE THE DOWN PAYMENT EQUITY FOR A UNIT. FOR INSTANCE, IF GIUSEPPE'S WAS BY A UNIT THEY WOULD NOT GET A PREFERENCE BUT IF THEY BUY TWO THEY GET A PREFERENCE ON ONE. SO WE'VE ASKED BUSINESSES TO SOLVE THAT FOR THEMSELVES BUT ALSO FOR THE WIDER COMMUNITY AT THE SAME TIME AND THEN AFTER THAT ARE IF YOU LIVE AND WORK IN THE COMMUNITY THAT THE UNIT THE UNIT IS LOCATED IN AND THESE PROPERTIES YOU'RE PURCHASING WOULD THEY THEN BE RENTED OUT AS A SINGLE UNIT OR WOULD THEY BE RENTED OUT BY BEDROOM SINGLE UNITS? SO IF HAD A TWO OR THREE BEDROOM PROPERTY THEN YOU'D BE LOOKING FOR A FAMILY THAT FAMILY OR IT COULD BE TWO OR THREE SERVERS THAT WANT TO BE ROOMMATES THAT'S OUTSOURCED TO THE LONG TERM MANAGEMENT COMPANY WE'D HAVE NO NO CHANGE THERE BUT WE'RE NOT RENTING BY BEDROOM.

OH IT'S THROUGH THE MANAGEMENT COMPANY THAT INDEED YOU WOULD BE LEASE AND SOMEBODY'S GOING TO BE RESPONSIBLE FOR THAT LEASE AND ONE OF THE THREE OF THEM IS RESPONSIBLE.

THAT'S THE ONLY ONE THAT I'M SURE THE MANAGEMENT WOULD RECOGNIZE.

YEAH, THAT'D BE GREAT IF WE HAD ROOMMATES IF THAT'S WHAT YOU'RE GOING TO OH I'M GOING TO ADD SOMETHING A LITTLE BIT DEEPER AND THAT IS THAT THESE PROPERTIES THAT YOU ARE PURCHASING ARE THROUGHOUT ANYWHERE ON THE ISLAND WHERE THERE ARE RESIDENTIAL NEIGHBORHOODS WHERE IT'S EXPECTED THAT A FAMILY UNIT WOULD BE MOVING INTO THE PROPERTY AND THAT THAT PROPERTY WOULD GAIN A SPECIFIC AMOUNT OF EQUITY AS APPROPRIATE OVER TIME. THAT IS PART OF THE RELATIONSHIP TO THE COMMUNITY ITSELF THE NEIGHBORHOOD ITSELF IN TERMS OF THEIR OWN EQUITY AND I THINK THAT THE AND I THINK THAT YOU BREAK YOU BREAK A PROMISE NOT YOU SPECIFICALLY THAT THERE'S A PROMISE BROKEN TO HOMEOWNER WHEN THEIR COMMUNITY CHANGES IN THIS REGARD AND I'M CONCERNED ABOUT THAT BECAUSE IT HAS BROAD AND LONG LASTING IMPLICATIONS FOR THE NEIGHBORHOODS SO THAT IS THE DEEPER POINT THAT I'M TRYING TO MAKE MAKE YOU I WOULD BE VERY CONCERNED ABOUT THE FAIR HOUSING LOANS THAT WOULD BE ASSOCIATED WITH THAT THERE'S NO COMMUNITIES THAT ARE EXCLUSIVE TO FAMILIES THAT I'M AWARE OF THERE CERTAINLY MAY BE BUT I UNDERSTAND THAT MY POINT BEING THAT YOU'RE NOW PURCHASING HOME THAT'S GOING TO BE RENTED OUT BY THE ROOM POTENTIALLY POTENTIALLY AND CHANGES THINGS A LITTLE BIT DIFFERENTLY.

I UNDERSTAND YOUR POINT WITH REGARD TO FAIR HOUSING AND TO UNDERSTAND MINE AS WELL.

I'M SURE ADDITIONAL ADDITIONAL WHILE IT'S A GOOD IDEA WHAT YOU'RE DOING I UNDERSTAND IS WHAT YOU ALSO DOING. YOU'RE TAKING HOMES THAT ARE WITHIN A SPECIFIC RANGE I'VE LONG TALKED ABOUT WHAT DO WE DO WITH HOUSING RIGHT? WE PROVIDE THESE RENTAL OPPORTUNITIES AND IN MY MIND WE'RE LOOKING THE NEXT STEP AS PEOPLE MOVE UP IN THE PROFESSION THEY EARN MORE MONEY, THEY GET MARRIED, THEIR FAMILY INCOMES GREATER AND THEY NO LONGER WANT TO LIVE IN AN APARTMENT SETTING. WHAT IS THE NEXT STEP AND I'VE SAID AS IN CURRENT STATUS THAT THERE AREN'T A LOT OF THOSE NEXT STEPS ON THE ISLAND SO.

THERE ARE THERE ARE SOME AND BY TAKING THESE HOMES OFF THE MARKET YOU'RE REDUCING THAT FURTHER. AND SO HOW YOU ACCOUNT FOR FOLKS WHO ARE LOOKING TO MOVE ALONG IN THEIR PROFESSIONAL GROWTH, THEIR FAMILY GROWTH AND DEVELOPMENT OVER THE COURSE OF TIME WHERE DO YOU WANT THEM TO GO WITH YOU'RE BUYING THE PROPERTIES THAT ARE THAT NEXT BAND OF HOME OWNERSHIP AND ISN'T OWNERSHIP WHERE WE WANT FOLKS TO GET TO RIGHT IT'S THE AMERICAN DREAM. IT'S HOW IS HOW YOU DEVELOP GENERATIONAL WEALTH AND ON THE ONE HAND YOU'RE GIVING THEM A LITTLE BIT OF HELP. GOT IT.

BUT IN THE LONG I THINK YOU'RE HURTING THEM AND I THINK YOU'RE HURTING ACROSS BOARD THE COMMUNITIES THAT THESE HOMES WOULD BE BEING PURCHASED IN ON HILTON HEAD AND JUST TO

[01:50:02]

CLARIFY, WE CANNOT AFFORD HOME ON HILTON HEAD. THERE'S NOT A SINGLE ONE FOR SALE NOR HAS IT BEEN FOR A NUMBER OF YEARS. SO I THINK WE'RE USING THE TERM HOME WELL WE'RE TALKING ABOUT CONDOS. IT'S ALL THE SAME.

HOWEVER IN BLUFFTON WE CAN'T AFFORD SINGLE FAMILY HOMES THREE OR FOUR OR FIVE BEDROOMS BELIEVE IT OR NOT. SO YOU KNOW, FOR SOMEBODY WHO HAPPENS TO STILL QUALIFY A 50 TO 150% OF OUR MIND THAT MAY BE AN OPTION BUT IDEALLY AS SOON AS YOU EARN OF THE 150% AMI YOU CAN AFFORD A HOME ON HILTON SO THAT WOULD BE 150% A-LINE THERE'S AND WE'VE HEARD FOLKS COMMENTING HERE TONIGHT THERE BEEN CONTROVERSY FOR A COUPLE OF YEARS NOW TALKING ABOUT AND PUSHBACK EVEN AGAINST OUR COUNSEL WHO ARE NOT IN FAVOR 15D HOLDING AND PRIVATE DEVELOPERS FEET TO THE FIRE WHO'S NOT COME TO US ASK FOR ANY PUBLIC FUNDS .

I WOULD ENCOURAGE THEM AS THEY'RE SUPPORTING THIS PROJECT HERE AT THE CDC THAT THEY CONSIDER THEIR POSITION AND VOTE YES AT THE NEXT OPPORTUNITY BECAUSE THOSE ARMS ARE HELD AT 120% CURRENTLY. SO THE INCONSISTENCY IS NEEDS TO BE REAL A LITTLE BIT MORE PAPERWORK IN TERMS OF WHAT DOES OVERALL AND SOMETHING ON YOUR PREVIOUS QUESTION.

SO WHAT'S HAPPENING IN THE MARKET IS THESE PROPERTIES ARE BEING BOUGHT AND PUT IN A LOT OF BEING PUT IN SHORT TERM STATUS AIRBNB AND VIRGO WE JUST TALKED TO SOMEBODY THIS MORNING THAT HAD A NUMBER OF PROPERTIES 46 AND EVERY EVERYBODY THAT'S TAKING A LOOK AT BUYING THESE IS TAKING A LOOK AT PUTTING THEM IN AND TAKING THEM OFF OF THE LONG TERM RENTAL MARKET AND PUTTING THEM INTO THE SHORT TERM RENTAL MARKET WHICH EXACERBATES OUR PROBLEM AND SO IT'S I, I DON'T THINK ANYONE THAT WE'VE TALKED TO THESE ARE NOT HOMES THAT ARE AVAILABLE.

THESE ARE THESE ARE INVESTORS ARE BUYING THESE BECAUSE THE RETURNS ON THESE THINGS BEEN UNBELIEVABLE WHICH IS SUBJECT TO CHANGE YEAR OVER YEAR RIGHT MARKET DECISION WHEREAS IN THIS CASE YOU'RE COMMITTING IT TO A 99 YEAR COVENANT SO THERE IS NO OPTION FOR THAT TYPE OF CHANGE IN ANALYSIS AND ANALYSIS OF WHAT A PRIVATE OWNER WOULD DO WITH THEIR BOOKS.

SO WE APPRECIATE YOUR POINT. THANK. AND THE OTHER CONCERN THAT I HAVE IS WITH REGARD TO TAXES SO AS A5013 SEE I UNDERSTOOD YOUR EX EXPLANATION THAT IF IT WERE TO GO BEYOND 120% AMI YOU WOULD INDEED BE PAYING PROPERTY TAXES WHICH OBVIOUSLY OUR RESIDENTS AND EVERY MEMBER OF THIS COUNCIL APPRECIATES. WE'RE LOOKING TOWARDS OUR BUDGET AND WHAT WE CAN SPEND MONEY ON TO THE BENEFIT THAT THE QUALITY OF LIFE OF THE RESIDENTS. BUT WHEN YOU'RE UNDER THAT 120% IT'S LOST REVENUE FOR THE COMMUNITY AND I THINK THAT'S A CONCERN THAT WE ALL HAVE TO APPRECIATE.

AND EVEN IF YOU WERE TO DISCUSS THE TRANSFER FEE TAXES WHICH I SAW WAS IN SOME OF YOUR THAT'S ANOTHER LOSS IN REVENUE FOR THE TOWN AND SO YOU KNOW WE HAVE TO BE PRACTICAL RIGHT EACH AND EVERY TIME WE TALK ABOUT GIVING AWAY MONEY TO A GROUP WE'RE TAKING AWAY PUBLIC FUNDS TO THE BENEFIT OF OTHERS AND. THAT AND THAT'S A BIG QUESTION. SO THOSE ARE A NUMBER OF THINGS IN TERMS OF LOST REVENUE THAT I HAVE TO BE COGNIZANT OF AS I REPRESENT TO MY CONSTITUENTS AND THE RESIDENTS ACROSS THE ISLAND THAT I AM BEING FIDUCIARY RESPONSIBLE WITH WHAT THEY'RE GIVING US TO SPEND AND SO THAT HAS TO BE NOTED AS WELL I THINK AGAIN I'M GOING TO LET SOME OTHER FOLKS TALK TO THEM. I MY MY RIGHT TO STOP AGAIN BUT ONE OF THE THINGS WITH REGARD THAT MONEY I'VE HEARD IT MENTIONED AND THIS MAY OR MAY NOT BE TRUE BUT I'VE HEARD IT MENTIONED THAT INDEED THE $600,000 WOULD BE TWO THINGS NOT JUST ONE YEAR BUT YEAR OVER YEAR REQUESTED THROUGH AN AFFILIATED AGENCY PERHAPS I OR MAYBE JUST LIKE NOW COMING IN OUT OF SEQUENCE WHEN THE MONEY IS HAS ALREADY BEEN ALLOCATED AND ASKING FOR MONEY AND I THINK THERE WAS SOME CHATTER ABOUT WELL THIS IS A TAX MONEY SO IT'S NOT REALLY RESIDENTS TAX MONEY BUT EVERY TIME WE DIP INTO THAT TAX MONEY I HOPE EVERYONE WHO SUPPORTS THAT IDEA AS THOUGH IT'S FREE MONEY NOT RESIDENTS. SO DON'T YOU WORRY YOURSELF ABOUT IT. IT INDEED IS MONEY THAT HAS ALREADY BEEN ALLOCATED TO GOOD PROJECTS AROUND THE ISLAND ENTITIES AROUND THE ISLAND TO TO SERVICE THE VISITOR SO AS WE GENERATE THAT TYPE OF CYCLE BACK THROUGH AND MANY IN FACT THE BOYS AND GIRLS CLUB IS A

[01:55:05]

RECIPIENT OF A SIGNIFICANT GRANT THAT VERY WELL COULD BE IMPACTED BY THE LOSS OF A TAX MONEYS GIVEN TO AN ORGANIZER SUCH AS THIS WHERE YOU OWN ALL THE AND THE RESIDENTS GET NOTHING TRULY TRULY AND I KNOW WE WOULD PROBABLY THAT IN TERMS OF WHETHER OR NOT HAVING A SERVICE WORKER HERE ON THE ISLAND IS A BENEFIT TO THE COMMUNITY AND I GET A LITTLE UNEASY MY SKIN CRAWLS A LITTLE BIT BECAUSE I HEAR FOLKS TALKING ABOUT HOW WITHOUT SERVICE WORKERS FOLKS THAT WE'RE PLUGGING INTO PLACES AND CONTINUING TO CREATE A RENTER CLASS WITH THAT OPPORTUNITY TO ACHIEVE THE AMERICAN DREAM THAT WE'RE TALKING ABOUT OUR LIFESTYLE ALL THAT WE ARE TALKING ABOUT THE SERVICES THAT WE EXPECT I WOULD ASK EVERYBODY STOP DOING THAT IT'S AN ELITIST ATTITUDE THAT THESE FOLKS WHO WORK HERE AND WE WANT TO BE PART OF OUR COMMUNITY ARE HERE TO SERVE US UP SO OUR QUALITY OF LIFE CAN BE AT A HIGHER LEVEL AND I FIND IT OFFENSIVE SO WITH THAT I'LL STOP OTHER COMMENTS YES.

MR. C ON PAGE 14 AND FOUR AND DOWN PAYMENT YOU'VE GOT GRANTS AND DONATIONS AND BUSINESSES, LOCAL CHURCHES, ALTRUISTIC INVESTORS. I ASSUME THAT IF THEY DON'T MEET THE CONTRIBUTION LEVEL THAT YOU WOULD LIKE TO GET FROM THEM THE IMPACT WILL BE ACQUIRING FEWER APARTMENTS. YUP. AND THE EXACT OPPOSITE OF EXCEEDED THAT'S CORRECT. HAS THERE BEEN ANY CONSIDERATION OR WOULD YOU BE WILLING TO GIVE CONSIDERATION TO USING TOWN FUNDS IF ANY ARE GRANTED TO YOU AS INCENTIVES? IN OTHER WORDS THE TOWN WILL GIVE X DOLLARS YOU RAISE Y DOLLARS FROM THIS GROUP.

HAS THERE BEEN CONSIDERATION THAT OR IF NOT WOULD YOU BE WILLING TO CONSIDER IT YET? THE MATCHING IDEA WOULD MAKE SENSE. THAT'S HOW WE DID OUR FIRST ADMINISTRATIVE GRANT AND OUR MOUNTAINS BUILT THAT WAY. SO YES WE WOULD BE UP TO THE CHALLENGE. I'VE LISTENED TO A LOT OF THE AUDIENCE DISCUSSION TODAY AND THE ISSUE IS BEING RAISED BY A NUMBER OF IN THE AUDIENCE ISN'T SO MUCH WHETHER THIS IS A GOOD PROJECT OR WHETHER IT'S WORTHWHILE AND PRODUCE A BENEFIT TO THE TOWN AND ITS RESIDENTS. BUT WHETHER IT OUGHT TO BE FINANCED PRIVATELY OR OR TO SOME EXTENT PUBLICLY WOULD BE VERY DESIRABLE IF WE COULD FINANCE PROJECTS PRIVATE HAS BEEN INDICATED HERE THE RETURN ON INVESTMENT OFTEN IS NOT ENOUGH TO GET THE PRIVATE SECTOR INVOLVED. WE HAVE SEEN PRIVATE SECTOR INVOLVEMENT IN THE WORKFORCE HOUSING BUT ESSENTIALLY I DON'T FEEL AND I'M NOT SURE OTHERS WOULD FEEL IT ISN'T ENOUGH THE PRIVATE SECTOR SECTOR'S INVESTMENTS IN WORKFORCE HOUSING IS GREAT BUT IT ISN'T ENOUGH TO SOLVE THE PROBLEM AND TO A SIGNIFICANT EXTENT THE TOWN IS ALREADY TAKING THE POSITION THAT IN ADDITION TO PRIVATE SECTOR FUNDS THERE NEED TO BE PUBLIC SECTOR FUNDS INVOLVED AS WELL. WE ARE WORKING ON THE NORTH POINT PROJECT.

WE'VE GOT A VERY SIZABLE AMOUNT OF MONEY ALLOCATED EVERY YEAR KEEP THE CONCEPT OF WORKFORCE HOUSING. THIS IT SEEMS TO ME FITS IN AND I DO NOT HAVE A PROBLEM WITH USING PUBLIC FUNDS. WE'VE ALREADY MADE THAT DECISION AND WE NEED TO DO THAT . SO I HAVE A DIFFERENT APPROACH THAN PERHAPS OTHERS HAVE STATED IN OTHER COMMENTS WHICH WAS ABOUT COMMON SAYING THAT PUBLIC COMMENT YEAH.

CAN I JUST PICK UP ON ONE THING THAT YOU MENTIONED WITH POINT WE HAVE MADE AN INVESTMENT AND THAT INVESTMENT PRIMARILY IS THE LAND THE 11 ACRES WORTH OF LAND WHEN EVERYTHING IS SAID AND DONE AS I UNDERSTAND IT WE STILL OWN THE LAND SO WE HAVE SOMETHING OF VALUE THAT FROM WHAT WE'VE COMMITTED TO THE PROJECT WHEREAS HERE IT IS A GIFT OF DOLLARS AND OWNERSHIP OR ANY ASSET THAT OUR EQUITY THE TOWN RETAINS. I'M GOING TO PUT UP FOR PUBLIC COMMENT SINCE YOU HAD YOUR HAND UP REAL QUICK DO I SAY THE NAME AGAIN?

[02:00:07]

I THINK I SAY THE NAME AGAIN. ANTHONY HUTCHINS SHIPYARD. SO THIS IS FABULOUS.

I LOVE I LOVE A LOT OF THIS. BUT MY BIGGEST CONCERN IS KEEPING THINGS SIMPLE.

IT JUST SEEMS TO ME LIKE THAT THERE'S A LOT OF WAYS THAT OVERALL THERE'S REAL MUCH PUSH TO THAT'S REALLY BAD. THERE'S NOT A BIG PUSH TO KEEP THINGS AS SIMPLE AS POSSIBLE IF YOU HAVE FUNDS THEN WHAT OTHER GOVERNMENT EMPLOYEES WOULD YOU NEED TO HAVE TO OVERSIGHT? HOW MANY OTHER THINGS WOULD THIS BE DIVERTED FROM? BUT I'M ALSO REALLY INTRIGUED WITH WELL I WANT TO BACK UP FOR 1/2 HILTON HEAD I SWEAR HILTON HEAD ISLAND HAS MORE NONPROFITS PER INCH THAN ANYWHERE IN THE WORLD AND IT SEEMS LIKE Y'ALL HAVE DONE A GOOD JOB OF TAPPING INTO THOSE IT FEELS A LITTLE BIT TO ME LIKE SHARK TANK WHEN SOMETIMES THEY HAVE SOMEBODY WITH A REALLY GOOD IDEA PITCH IT AND THE SHARKS ARE LIKE WELL YOU'RE DOING FINE ON YOUR OWN.

YOU NEED TO KEEP GROWING ORGANICALLY RATHER THAN INVOLVE WHOLE BUNCH OF OTHER RED TAPE AND THAT'S AGAIN LIKE I LIKE SIMPLE BECAUSE SIMPLE IS UNDERSTANDABLE.

SIMPLE GETS PEOPLE IN THE COMMUNITY INVOLVED. SIMPLE CONTINUES TO GROW AND AND THEN I'M CONCERNED THAT THIS WOULD OPEN THE FLOODGATES FOR OTHER NONPROFITS BECAUSE IF THEY KNOW THE GOVERNMENT'S FUNDING SOME NONPROFITS DO THEY DO MORE.

I'M ALSO VERY, VERY, VERY INTRIGUED AS TO AND I'VE ASKED A LOT OF DIFFERENT OFFICIALS THIS QUESTION AND WHEN YOU BROUGHT UP THE LONG TERM RENTAL SITUATION WE HAVE ACROSS COUNTRY AND IN THIS AREA PARTICULARLY A LONG TERM RENTAL SHORTAGE AND PERSONALLY AS REALTORS WHEN WE TALK TO INVESTORS COMPARING TO BE SOMEWHAT EQUITABLE IN TERMS OF HAVING A GOOD LONG TERM VERSUS SHORT TERM RENTALS BECAUSE THERE'S PROS AND CONS TO BOTH BUT REALLY ADDRESSING THE ELEPHANT IN THE ROOM IS THAT THE CDC IMPOSED AN IN MY OPINION A LEGAL MORATORIUM OF 15 MONTHS ON PEOPLE THAT DO OWN LONG TERM RENTALS AND TO THAT'S DRIVEN A LOT OF PEOPLE OUT OF LONG TERM RENTAL OWNERSHIP WHICH IS PART OF THE PROBLEM OF THE SUPPLY ISSUE ON THE ISLAND BECAUSE THEY DON'T KNOW IF SUDDENLY THEY'RE GOING TO BE PAYING BILLS THAT ARE INCREASING ESPECIALLY INSURANCE WITH NO IN SIGHT OF WHEN THEY'RE GOING TO GET PAID RENT AGAIN. AND SO I'M CURIOUS AS TO HOW THAT WOULD INTERACT WITH ALL THIS. SO THAT'S A WHOLE LOT OF THINGS BUT I THINK IT'S A GREAT IDEA. I JUST HATE TO SEE GOVERNMENT INVOLVED IN ANYTHING THAT CAN STAY OUT OF IT. THANK YOU. THANK YOU, MR. HOAGLAND.

OKAY. LET ME GIVE YOU THE NOT CONSPIRACY THEORIES OR OPINION JUST BECAUSE SOMETHING IS WORTHY AND HEARTFELT DOES NOT MAKE IT LEGAL TO TAX FUN.

KIM LIKENS IN THE BOYS GIRLS CLUBS ARE A PERFECT EXAMPLE OF THAT.

THIS TYPE OF FUNDING IS GOING TO RESULT IN ANOTHER LAWSUIT THAT'S ALREADY BEEN FILED AGAINST YOU FOR THE $600,000 ISSUE TO SEA PLANS FOR THE DREDGING OF HARBOR TOWN.

YOU CAN THINK IT'S GREAT YOU CAN TAKE WHATEVER YOU WANT BUT THE FACT THAT IT'S ILLEGAL A CONSTITUTIONAL LAW OF SOUTH CAROLINA AND I HAPPEN TO HAVE BEING ONE OF MY LAWYERS AND NOTES LOT ABOUT THAT IT IS ILLEGAL TO USE PUBLIC FUNDS FOR PURPOSES IT'S NOT FOR THE PUBLIC GOOD REASON AND BENEFIT AND USE YOU CAN SAY WHATEVER YOU WANT THEY CAN PITCH THEY WANT

[02:05:40]

RIGHT ON THIS. THANK YOU. ALL RIGHT.

ANYBODY MARGARET AND GREAT NON-PROFITS I GIVE TO THE ONE I BELIEVE THEY SHOULD GET.

HOW CAN YOU SAY YOU'RE GOING TO GIVE TO ONE NONPROFIT? IT'S TO ANOTHER VERY WORTHWHILE NONPROFIT. YOU CAN'T THAT IT HAS TO BE EQUAL.

YOU HAVE TO GO AND SAY OKAY, WHAT I'M DOING THIS IS OUR EQUAL BOARD.

IF YOU GIVE TO ONE YOU SHOULD GIVE TO THEM ALL AND BEGIN WITH THAT MY I'M SORRY WHY DO THEY GET MUCH HIGHER AM I RIGHT TO SAY FOR THEIR RENDERS VERSUS THEY WANT THIS GREAT PROJECT 50 TO 120 0 TO 60 AGAIN THEY'RE JUST EQUAL. THIS COUNTRY HAS LIVED ON THE FREE MARKET SYSTEM OVER 245 YEARS. WE SHOULD CONTINUE TO TRY TO FOLLOW. WE NEED TO BE THE PEOPLE DO IT. THIS NEEDS TO BE NOT GOVERNMENT FUNDING. EVERY TIME I SEE GOVERNMENT FUNDING IT TO ANY FUTURE IT BECOMES DESTROYED IT BECOMES CORRUPT. THE FREE MARKET DOES NOT MAKE IT CORRUPT. I THINK OUR STANDARD OF LIVING HAS GREATLY INCREASED FROM THE PROJECTS PEOPLE THOUGHT THAT WAS A GREAT IDEA HOUSING BUT LOOK WHO HAPPENED TO THEM? IT WAS A DISASTER I THINK GOVERNMENT PUTS THEIR FINGERS AND I'M GOING TO INCLUDE OUR TOWN IF ANYTHING IT IS GOING TO INCREASE. I TRULY BELIEVE THAT WE SHOULD TRY TO GET AS MANY PEOPLE TO BUY THE HOUSES NOT JUST TO RENT, TO MOVE, TO DO WHATEVER WE NEED TO AND IMPROVE PEOPLE'S MORALE AND CONTINUE TO BE A FREE MARKET SOCIETY.

AND I THINK WE NEED TO USE DOLLARS WISE I THINK TO CONTINUE THIS IS LIKE PUTTING AN ANCHOR ON ME THROWING ME IN THE MIDDLE OF THE WATER AND SAYING OKAY SWIM.

I'M GOING TO CONSTANTLY BE NEEDING HELP TO GET UP THAT ANCHOR POINT ME JOHN WE START GIVING MONEY TO THIS. IT'S NEVER GOING TO END. I DO NOT THINK WE SHOULD DO THIS THANK YOU. THANK YOU. I AGREE WITH SHARING I RETRACT THE TRACKLIST MY SECOND HALF RETRACT IT TO MY THOUGHTS THE PROCESS BY FAR FROM THERE CHRISTOPHER AFTER OUR RETURN AMY BROUGHT UP SUCH EXCELLENT THANK YOU SO MUCH EVERYBODY ACTUALLY DID AND I AGREE WITH ANDREW ABOUT THE OVERSIGHT EVERYTHING IS SO KIND AND WHEN DO WE WHO'S GOING TO FIGURE OUT WHEN THE DONE THEIR EARNOUT OR THEY MADE IT MORE THAN ENOUGH MONEY TO THE FOR THE PLACE OF RENTING THEM WE GOT TO MOVE ON THERE'S A COST TO THAT THE GIRL THAT YOU SHOWED ON THE VIDEO SHE WAS TALKING ABOUT BECOMING AN ATTORNEY SHE DIDN'T SAY SHE WANT TO BE IN HOSPITALITY YOU KNOW, THE REST OF HER LIFE AND THEN IF THEY CAN IF I'M TAKING THIS RIGHT THEY CAN PURCHASE THE UNITS AFTER A FEW YEARS AND ONLY LIKE A 4% APPRECIATION. WELL THEN THE OTHER RESIDENTS IN THE AREA WHO WEREN'T AFFORDED THE SAME COURTESY ONLY YOU KNOW BEING ABLE TO BUY THEIR PROPERTIES LIKE THAT THEY CAN BRING THEIR PROPERTY VALUES DOWN. I'M JUST WITHIN THE AREA SO I DON'T THINK IT'S FAIR TO OTHER RESIDENTS AND THEN AS FAR AS SOME OF THESE NEIGHBORHOODS THAT THEY'RE PURCHASING THE PROPERTIES, I DON'T KNOW THEY'RE GOING TO ALLOW MULTIPLE NON-RELATED FAMILY MEMBERS IN THE SAME UNIT IF THERE'S FEW BEDROOMS. SO THAT'S SOMETHING I WOULD TRY TO KEEP IN MIND AND AS A REALTOR HERE I THINK THERE'S JUST A LOT TO IT'S NOT THAT THE HOUSING IS NOT AFFORDABLE AFFORDABLE WHICH I KNOW IT'S EXPENSIVE FOR ALL OF US BUT A LOT OF THESE YOUNG PEOPLE THEY DON'T WANT TO LIVE WITH THE OLDER POPULATION HERE. THEY OFTEN A YOUNGER DEMOGRAPHIC THERE'S NOTHING TO DO HERE EVEN THOUGH I MEAN WE FIND THEY JUST WANTED TO DO THE BEACH BUT THEY LIKE IT FURTHER

[02:10:06]

SO I DON'T KNOW HOW THAT'S GOING TO HELP. I MEAN WE HAVE LIKE 600 RESTAURANTS WE DO. THAT'S WHY WE CAN'T FIND A PEOPLE AND MAYBE WE DO NEED TO HAVE TOURIST TAX TO HELP PAY FOR SOME OF THIS STUFF BECAUSE .

I THINK ALL THOSE RESTAURANTS AREN'T JUST ACCOMMODATING THE RESIDENTS.

IT'S YOU KNOW, THE TOURISTS. THAT'S WHY WE NEED ALL THESE PEOPLE SO ANYWAY IT'S MEANT TO SOMETHING SO THANK YOU, SIR. MY NAME IS REGULA. I'M IN MIDDLE HALL.

I WANT TO SAY I WOULD I WOULD REALLY ENCOURAGE YOU GUYS TO TAKE ADVANTAGE OF THE OFFICE.

WAIT. GUY THAT WANTS TO DO IT WITH HIS OWN MONEY THIS WHOLE PROGRAM IS WITH MONEY AND WE DON'T KNOW WHERE IT'S GOING TO END THERE'S THAT THEY'VE DONE A GREAT JOB OF PRESENTING AND I KNOW THAT THEIR HEARTS INTO IT AND AND I JUST THINK THE $600,000 TODAY IT'LL BE 650,000 700,000 ANOTHER YEAR MAYBE A MILLION NEXT TWO YEARS NEXT THING YOU KNOW WE'RE GOING TO HAVE THESE PROPERTIES THAT HAVE NO APPRECIATION.

THE PEOPLE THAT ARE TRYING TO SELL THEM ONE NEXT DOOR CAN'T AFFORD TO SELL IT BECAUSE THEY'RE SELLING THESE THINGS FOR 300 GRAND BUT THEY OWE IT FOR 600,000.

IT'S JUST NOT GOING TO WORK THAT KIND OF PROGRAM DOESN'T WORK IF IF IF THIS GUY CAN OFF HIS WAY CAN SPEND HIS $30 MILLION TO PUT THIS LOOK PLACE ALL THESE PEOPLE TO GO AHEAD AND LIVE WHY WHY CAN'T WHY CAN'T CDC GET THAT KIND OF SPONSORSHIP? WHY DOES IT HAVE TO BE US? THAT'S THAT'S REALLY WHAT I REALLY WANTED TO SAY.

I JUST ENCOURAGE YOU NOT TO GO AHEAD AND SPEND OUR TAXPAYER DOLLARS WITH THIS PROGRAM.

THANK YOU. THANK YOU MY BUSINESS I'M CHEERING NORRIS SHIPYARD HAVE WONDERFUL PRESENTATION THAT WAS IT WAS REALLY WELL DONE TO ME I THINK YOU SOME EXCELLENT COMMENTS TO MAKE IN ASSESSING THIS AND WHAT REALLY STRIKES ME IS IF THIS IS NOT A GOOD INVESTMENT FOR PUBLIC BECAUSE THE RETURNS ARE SO LOW WHY WOULD WE AS THE GOVERNMENT TAXPAYERS MAKE THIS INVESTMENT WHEN THERE'S NOT ENOUGH RETURN GOVERNMENT IS A BANK AND THIS FEELS MORE LIKE A GIFT TO THIS PROJECT INSTEAD OF AN INVESTMENT.

AND I THINK WITH THAT YOU OPENED UP A HUGE CAN OF WORMS BECAUSE A LOT MORE NONPROFIT ORGANIZATIONS FOR ALL THEIR WONDERFUL PURPOSES WILL THEN BE FREE TO ASK FOR OUR TAXPAYER DOLLARS. BUT THE THE NORTHPOINT INVESTMENT WE HAVE SOMETHING TANGIBLE WHICH IS MORE THAN CAN BE REPURPOSED AND I'M NOT HEARING THAT IN THIS PRESENTATION WHAT DO WE HAVE THAT'S TACTILE? I LIKE THE IDEA THAT BUSINESSES CONTRIBUTE TO THIS PROJECT BECAUSE THEY HAVE MORE SKIN IN THE GAME FOR LONG NEEDS AND BENEFITS. I DON'T THINK OUR MONEY SHOULD BE USED FOR HOUSING EVEN THOUGH YOU COULD LEAN TOWARDS IT AS HELP TOURISM WHATNOT. I THINK THAT'S GOING TO TAKE AWAY FROM OTHER BENEFITS SPECIFICALLY CULTURALLY THAT THAT MONEY CAN BE USED FOR.

I AM A HUGE PROPONENT OF THE FREE MARKET AND LETTING THE PRIVATE SECTOR DETERMINE SUCCESS AND FAILURE OF BUSINESSES. I THINK THAT'S WHAT MAKES AMERICA GREAT AND I COMPETITION IS GOOD IN THE MARKETPLACE WHEN I HEAR A PRESENTATION LIKE THIS AND MY BACKGROUND WAS IN THE FILM INDUSTRY FOR MANY YEARS IT FEELS LIKE AN INDEPENDENT FILM OFFERING. IT LOOKS REALLY GOOD BUT YOU'RE INVESTING THERE IF THERE'S NOT A HISTORY AND YOU NEVER KNOW WHAT THE PUBLIC OR THE MARKET OR THE EMPLOYEES ARE GOING TO DEEM THAT'S GOOD FOR THEM. IT JUST DOESN'T FEEL LIKE A SECURE INVESTMENT FOR OUR TAXPAYER DOLLARS FOR THE TOWN TO ENTER THIS PROPOSITION I THINK WE'RE OPENING UP A BIG CAN OF WORMS. THANK YOU. THANK YOU THIS IS NOT THANK YOU

[02:15:15]

GRACE GO RUN AND I COULDN'T SEE THE WHOLE PRESENTATION. I THINK WE SHOULD HAVE SOME PRAISE AND I APPRECIATE YOU KNOW, TO USE THE OFFICE IN THERE BUT I DID HAVE JUST A COUPLE OF CONCERNS FIRST OF ALL I THINK REAL ESTATE IN THE FINAL SAY IN THE BOTTOM LINE IT'S A BUSINESS AND ON THE OFFICE THREE PROJECTS I NOTICED THERE'S A PRIVATE BUSINESS WILLING TO TAKE THE RISK AND AND CERTAINLY NOT WHOLE SITUATION AND THERE AREN'T BUSINESSPEOPLE ON THE ISLAND THAT HAVE COME FORTH AND OFFERED TO SUPPORT PRIVATE ENTERPRISE BUT I'M NOT SITTING IS BUSINESSES WILLING TO COME WITH THEIR WALLETS AND PUT IT BEHIND THIS PROJECT AND INSTEAD YOU'RE ASKING FOR THE 600 GRAND INITIALLY FROM THE TOWN IF IT'S SUCH A GREAT PROJECT WHY THE BUSINESSES THAT ARE SUPPOSEDLY GOING TO BENEFIT FROM HOUSING THEIR WORKERS IN THIS PROJECT STEPPING UP TO ADD SOME MONEY SO ALSO THE HOSPITALITY BUSINESS I'VE HEARD THAT TURNOVER RATES RANGING UP TO 70% ANNUALLY SO I'M JUST GOING CONCERN I HAVE SOME WORST CASE THEORY WHAT IF YOU GET ALL THESE PEOPLE INTO 12 UNITS AND THEN ALL OF A SUDDEN THEY GET A JOB IN BLUFFTON OR BEAUFORT OR WHATEVER AND THEY SPLIT AND THEY WERE PAYING THE RENT? WELL NO. WHO PAYS THE RENT AT THIS POINT WHEN GONE AND THAT IS A REAL FACTOR BECAUSE OF 70% PROJECTED TURNOVER RATE AND THEN WHEN I INITIALLY SAW THIS 99 YEAR COVENANT OF RESTRICTING USE OF ANY PROPERTY ON HILTON HEAD ISLAND WHETHER IT'S THIS PROJECT OR MY NEXT DOOR NEIGHBOR RESTRICTING WHAT HIS HOUSE COULD BE USED FOR FOR NINE YEARS SCARES THE OUT OF ME.

I REALLY DON'T LIKE TO SEE ANYTHING THAT'S THAT'S LOCKED DOWN FOR 99 YEARS.

I THINK THAT'S A REAL CONCERN AND A REAL ESTATE GUY I DON'T KNOW A LOT ABOUT IT BUT JUST AT THE GUT LEVEL THAT SCARES ME AND THOSE ARE MY COMMENTS THAT APPRECIATE YOU LISTENING.

THANK YOU. THANK YOU. SUE, DO WE HAVE ANY OTHER COMMENTS LIKE IT'S LIKE FOR THE RECORD AND EVERYONE GOOD AFTERNOON MAYOR TOWN MANAGER COUNCIL MEMBERS THANK YOU AS ALWAYS FOR THE OPPORTUNITY TO SPEAK IN IN DECEMBER LAST YEAR THE TOWN COUNCIL UNANIMOUSLY VOTED TO APPROVE THE TOWN'S WORKFORCE HOUSING FRAMEWORK AND TO ESTABLISH A HOUSING FUND TO SUPPORT IT IN 2023 THE COUNCIL MEETS IMPLEMENTATION OF THE HOUSING FRAMEWORK A STRATEGIC PRIORITY A PARTNERSHIP IS A STEP ONE WAY TO FULFILL FEELING YOUR COMMITMENT TO THE WORKFORCE, FAMILIES AND MOST SPECIFICALLY FOR THE GOAL IS TO PROVIDE SUSTAINABLE LONG MODEL FUNDING FOR HOUSING INITIATIVES AND, PARTNERSHIPS IDENTIFIED TO ACCOMPLISH THIS TOPIC IS TO ESTABLISH A NETWORK OF POTENTIAL FINANCIAL PARTNERS INCLUDING BUT NOT LIMITED TO PRIVATE INVESTORS, ORGANIZATIONS, BANKS ETC. TO SUPPORT WORKFORCE HOUSING AND ASSISTANCE BY PAIRING WITH THE SEE YOU ACCOMPLISH THIS BECAUSE WE ARE BRINGING PRIVATE INVESTORS, BANKS AND NONPROFITS WORKING INSTITUTIONS TO WORK COLLECTIVELY WITH THE TOWN ON THE WORKFORCE HOUSING SOLUTION OUR STRATEGY BRINGS THE COMMUNITY TOGETHER TO SOLVE A PROBLEM YOU RANKED EARLY ON FOR COLLABORATION SOLVE THIS PROBLEM WE LOOK FORWARD TO BEING PART OF YOUR TEAM TO HELP GET IT DONE.

THANK YOU. ANY OTHER COMMENTS FROM THE PUBLIC AND CAMPBELL OR WHAT YOU

[02:20:09]

USE? I AM FULL DISCLOSURE I AM ON THE BOARD I HAVE DECIDED TO BE VERY INVOLVED IN THAT BECAUSE BELIEVE IN THE MISSION. I HAVE JOINED WITH THIS COUNCIL TO BE PART OF THE SOLUTION AND TRY TO RESOLVE SOME OF THE PROBLEMS. WE I THINK EVERYBODY IN THE ROOM IS AWARE THAT WE HAVE A PROBLEM WITH WORKFORCE HOUSING.

HOW SO MANY WAYS YOU COULD BE SOLVED PRIVATE ENTERPRISE WHICH WAS MY BACKGROUND 50 YEARS SUCCESSFUL DEVELOPMENT COMPANY PRIVATE INDUSTRY DOES NOT SOLVE THE PROBLEM ON THE ISLAND OF PARK ROAD IS NOT WHAT THIS ROAD IS A MARKETPLACE PROJECT IT'S BUILT FOR PROFIT AND IT'S NOT BUILT FOR OR CHOICE. IT'S MARKET RATE IS NOT MARKET RATE OR WORKFORCE.

I CAN HELP EVERYBODY ON THE ISLAND SO I HOPE YOU CAN CONTINUE ALONG WITH THE ON PREVIOUS COUNCIL ALLOCATED FUNDS YOU ALLOCATED FUNDS AND I DON'T THINK THERE'S A LOT OF DEMAND FOR THOSE PEOPLE IN VERY FEW VEHICLES TO PUT THOSE FUNDS TO USE AND I THINK WE WILL DO A GREAT. ALL RIGHT. THANK YOU.

THANK YOU. ANY OTHER COMMENTS? I SEEING DONE? I'LL BRING IT BACK TO THE DAIS . I'VE GOT A FEW PLANS, MR. MAYOR . WANT TO ASK A FEW? GOOD.

OF AND THIS 13 UNIT MODEL THIS ONE BY ROSS NEFF WITH 75% OF THE HOMES HAVING TO BE UNDER THE 80% AND IT WILL BE NINE UNITS. YES.

AND COMPARED TO ALMOST ANYTHING THAT THE COMPANY PLACED IN I DO NOT USE TURISMO WHAT HAPPENS TO THE PROPERTY TAX IF THE UNIT IS PURCHASED OR IF IT MEANS THAT WOULD GO AWAY BECAUSE THEY WOULD THEY'RE NOT A NONPROFIT, THEY'RE INDIVIDUALS SO THEY HAVE TO PAY THE 4% RATE.

AND YOU MENTIONED EARLY ON IN THEIR PRESENTATION THAT THE NONPROFIT WOULD BE OPEN TO REIMBURSEMENT BY THE ATMOSPHERE FOR THE FUNDING THAT YOU REQUESTED.

ABSOLUTELY. AND THE FIRST PURCHASERS THAT YOU'VE DONE CAN YOU MENTION AGAIN WHERE THEY ARE. TWO OF THEM ARE IN THE WOODLAKE COMMUNITY OFF OF MATTHEWS DRIVE . THE OTHER IS SELLING OFF OF COUNTRY ROAD.

OKAY. THANK YOU. THANK YOU.

I'VE GOT A COUPLE OF QUESTIONS FOR THE STAFF, MR. ORLANDO BUT BEFORE I ASK QUESTION, I WANT TO MAKE A COUPLE STATEMENTS HERE WHEN WE TALK ABOUT THIS HOUSING CRISIS THAT WE'RE IN, I TEND TO REALLY THINK ABOUT PEOPLE AND NOT UNITS AS TEAMS. YOU CAN HELP WITH THIS SO FREQUENTLY WHEN HE WAS DEVELOPING PEOPLE AND AS HE ONLY PLANTATION WAS BEING DEVELOPED AND STAYING THAT THERE WERE UNITS THAT WERE SET THAT WERE AFFORDABLE FOR THAT WERE WORKING HERE AND THE FREE MARKET UNFORTUNATELY HAS GOBBLED THOSE UNITS UP TO A LARGE DEGREE. THEY ARE NOW MARKET RATE. ONE OF THE THINGS THAT REALLY BOTHERED ME WHEN CHIMNEY CALL WAS UP FOR SALE WAS THAT PEOPLE IN THAT COMMUNITY WERE GOING BE DISPLACED WITH NOWHERE TO GO AND HERE WE ARE WITH A PRESENTATION THAT IS TALKING ABOUT A FIRST CHOICE FOR THOSE THAT MAY BE DISPLACED. THAT DEFINITELY GETS MY ATTENTION. THAT'S MY QUESTION FOR STAFF. WE'VE GOT AN APPROVAL FOR $130 MILLION BUDGET AND THERE'S HOUSING FUND ATTACHED TO IT. IS THAT CORRECT OR ONE OF APPROXIMATELY $2 MILLION AND AT THE MOMENT DO WE HAVE ANY OTHER REQUEST IN FRONT OF US OR

[02:25:01]

HOUSING NOTHING FORMAL AT THIS TIME? OKAY.

WE AGREED THAT WE WANTED TO START THAT FUNDS AND WE INTENTIONAL ABOUT HOUSING THE EIGHT TAX LEGISLATION THAT WE'VE JUST PASSED. WE A COUNCIL AGREED TO SUPPORT THAT RESOLUTION THAT WE THAT AS A FULL COUNCIL I BELIEVE SO WE DID.

SO I'M INCLINED TO MOVE THIS FORWARD UNDERSTANDING THERE ARE BUCKETS OF MONEY AVAILABLE THAT WE CAN TAP INTO AND AS FAR AS THE EXPECTATIONS AS FAR THE ACCOUNTABILITY PIECE IS CONCERNED WE NEED TO WORK THAT OUT AS AS THIS ORGANIZATION BEING A PARTNER TO THE TOWN TRYING TO SOLVE A VERY VERY DIRE NEED IN OUR COMMUNITY. OTHER COMMENTS.

GO IN ORDER AND JUMP IN NEXT. SO AS I'VE SAID MANY TIMES BEFORE, I SUPPORT THE STRATEGY THAT THE TOWN COUNCIL ADOPTED OF WORKFORCE HOUSING. IT'S TIED WITH ME FOR NUMBER ONE WITH GROWTH MANAGEMENT ON THE ISLAND AND I AM COMMITTED TO DOING IT DURING THE CAMPAIGN . WE WERE ASKED A NUMBER OF TIMES ABOUT WORKFORCE HOUSING.

ALL THE COMMENTS WE RECEIVED WAS YES THERE IS A WORKFORCE HOUSING PROBLEM ON THIS ISLAND AND WHAT ARE WE GOING TO ABOUT IT? AND I SAID MANY TIMES THAT NO ONE CAN SOLVE IT ALONE. PRIVATE INDUSTRY CAN'T STANDALONE EITHER CAN'T SOLVE IT ALONE. IT TAKES A LOT OF DIFFERENT MODELS TO TRY TO SOLVE WORKFORCE HOUSING. I'M HAPPY TO HEAR ANOTHER MODEL TONIGHT.

I TO THE PRESENTATION THAT WAS MADE BEFORE THE FINANCE ADMINISTRATIVE COMMITTEE I'M IMPRESSED THAT PRIVATE CITIZENS HAVE STEPPED UP TO TRY TO ADDRESS THIS THROUGH FINANCIAL ANALYSIS. THE OF PACKAGES THAT WE RECEIVED IN THIS MODEL HAS HUSBAND HAVE FOUR RENTAL HOUSES TOGETHER. YES WE HAVE SOME WORKFORCE HOUSING IN OUR RENTAL UNITS. YES WE'RE PRIVATE INVESTORS. I WISH THAT I HAD SOMEBODY DOING FINANCIAL MODELS FOR ME. WE KIND OF DID IT AS WE LEARNED.

BUT I SUPPORT LONG TERM RENTALS BECAUSE YOU DO GIVE FOLKS A PLACE TO LIVE AND HOPEFULLY A SAFE, SECURE AND QUALITY PLACE TO LIVE. OUR FOLKS ARE PART OF THEIR NEIGHBORHOODS. THEY'RE PART OF THE WORKFORCE AND I SEE THAT HERE ON THE ISLAND USED TO LIVE DOWN SOUTH WE HAD WORKFORCE FOLKS LIVING ABOVE US AND AROUND US WE HAD FULL TIME RESIDENTS. WE HAD FOLKS WITH SECOND HOMES. WE HAD TIMESHARES.

I LIKE TO SAY I PROBABLY LIVED IN EVERY KIND OF HOUSING THERE IS ON AN ISLAND WITHIN ONE AREA. AND SO I TRY TO UNDERSTAND EVERYONE'S APPROACH AND EVERYONE'S ON THINGS THAT COME BEFORE US. BUT LOOK AT THE DATA.

I'M IMPRESSED THAT ALREADY THIS NONPROFIT HAS FOUND AND FUNDED THREE UNITS.

I WISH I COULD SAY THE SAME THING FOR THE TOWN COUNCIL. WE HAVE YOU SEEN I'M IMPRESSED BY THAT. I'M IMPRESSED BY THE COMMUNITY FINANCIAL MODEL.

I'M IMPRESSED BY THEIR WILLINGNESS TO STEP UP AND. AND I'M ALSO COGNIZANT OF THE FACT AS MR. BROWN HAS MENTIONED THAT WE DO HAVE FUNDS AVAILABLE TO SUPPORT WORKFORCE HOUSING.

WE FUNDED IT WITH THE INTENTION OF DOING SOMETHING WITH IT, NOT LETTING IT SIT THERE.

WHEN I LOOK AT THIS KIND OF PROPOSAL WE HAVE A NUMBER OF AFFILIATED THAT COME AND APPLY THROUGH THE ATX COMMITTEE SO WE'VE ALREADY PROVIDED MILLIONS OF DOLLARS OF FUNDS THAT WAY. THIS IS A STELLAR MODEL. I THINK THAT THE FINANCING INITIATIVE COMMUNITY COULD TAKE A LOOK AT HOW TO WORK OUT THE DETAILS.

THE FINANCE ADMINISTRATIVE COMMITTEE VOTED FOUR ZERO TO SEND THIS TO THE FULL TOWN COUNCIL SO BELIEVE MORE OF OUR TOWN COUNCIL MEMBERS ARE ALREADY CONVINCED THIS WAS A GOOD IDEA OTHERWISE IT WOULDN'T BE HERE TONIGHT. I'M GOING TO SUPPORT THIS REQUEST AND HOPEFULLY IT WILL GO BACK TO THE ADMINISTRATIVE COMMITTEE TO WORK OUT THE DETAILS. BUT WE NEED ALL DIFFERENT KINDS OF MODELS.

NO ONE NO ENTITY CAN SOLVE IT ALONE. AND I'M WILLING TO STEP UP AND SAY YES AND ANOTHER REASON THAT I WANT TO SAY YES TO THIS IS BECAUSE AM I AS I MENTIONED LAST QUESTION THIS MODEL SAYS THAT 5% OF THE UNITS AND THREE OUT OF EVERY FOUR UNITS MUST UP

[02:30:10]

TO 80%. 150% ABOVE THAT IS ONLY 25% OF THE UNITS AND THAT HAS TO BE DEALT WITH A DIFFERENT WAY WITH REGARD TO TAX PURPOSES. THERE'S 75 OF THE UNITS ARE GOING TO BE UP TO 80%. IT'S A DIFFERENT MODEL THAN WE'VE SEEN BEFORE WITH A COMMITMENT OF 99 YEARS WHEN ALL OF THE EXISTING POLICY OF THE TOWN COUNCIL AND THE LAND MANAGEMENT ORDINANCE SO PUTTING UNITS IN SERVICE RIGHT NOW BUT A COMMITMENT FOR 75% TO BE UP TO 80% AND FOR 99 YEARS WITHOUT A PATHWAY TO HOMEOWNERSHIP OR WORKFORCE IN OUR COMMUNITY.

TO ME A WIN. OTHER COMMENTS I DON'T WANT STEP ON AND USE TOO MUCH TIME BUT I DO WANT TO JUST ADDRESS A COUPLE OF COMMENTS THAT I'VE HEARD.

REIMBURSEMENT FOR PUBLIC FUNDS THE BANK OF HILTON HEAD ISLAND DOESN'T EXIST AND HILTON HEAD ISLAND DOESN'T EXIST AND I DON'T THINK THERE'S ANY EXPECTATION BY THE SEASIDE GROUP TO REIMBURSE THE TOWN FIRST AND THEN IN TERMS OF TAX MONEY AND HOW OTHERS APPLY TO AFFILIATED AGENCIES. WHILE THIS MODEL IS UNIQUE AND INTERESTING AND I THINK AS A PRIVATE ENDEAVOR WOULD HAVE MY FULL SUPPORT ADMIRERS PUBLIC PRIVATE PARTNERSHIP AND HERE'S ONE REASON WHY WHEN WE LOOK AT AFFILIATED WE LOOK AT PLACES LIKE THE COASTAL DISCOVERY AND AND GIRLS CLUB AND OTHER FOLKS. HOW MANY OF THOSE ARE DUPLICATED ONE AFTER THE OTHER ON THE WHEREAS THIS MODEL COULD BE EASILY DUPLICATED BY ANOTHER GROUP OF CIVIC MINDED INDIVIDUALS. TIME OVER TIME AND SO WOULD EACH ONE OF THOSE GROUPS ALSO COME FORWARD AND ASK FOR MONEY AND AND IN HOW MUCH MONEY DO WE HAVE AVAILABLE AND? AS I SAID BEFORE, EVERY TIME WE DO THIS WE TAKE MONEY FROM THAT BUCKET THAT DOESN'T HAVE A BOTTOM TO IT. THERE'S ONLY SO MUCH RESOURCE IT.

SO I JUST WANTED TO POINT THOSE THINGS OUT AS I HEARD THEM. THE OTHER COMMENT WAS ROBERT NO THAT'S GREAT. THANK YOU MAYOR. I HEARD MR. ALFORD MAKE COMMENT THAT I AGREE WITH. COUNCIL VOTED TO MOVE FORWARD WITH A PROGRAM TO SUPPORT WORKFORCE HOUSING. I HEARD MR. BROWN SAY THAT WE'RE TALKING ABOUT PEOPLE I GET REALLY ENERGIZED AND I HEAR PEOPLE SAYING THAT I CAN'T LIVE IN MY NEIGHBORHOOD.

WE NEED PEOPLE IN THIS COMMUNITY BRINGING ENERGY ACTIVITY AND SUPPORT AND ONGOING BASIS AND HOUSING FOR THOSE PEOPLE ARE ESSENTIAL. I THINK THAT THIS PRESENCE SORT OF SUMMARIZED MY COMMENTS AND SHE DID A GOOD JOB DOING IT. I'M NOT GOING TO TRY TO DEBATE FACTS AND FIGURES THAT HAVE BEEN REPRESENTED IN PUBLIC COMMENTS BUT I DO THINK IT'S TIME FOR THIS COUNCIL TO MOVE US FORWARD AND I HAVE A MOTION THAT I'D LIKE TO MAKE IF I MAY READ. I MENTIONED THE FUNDING REQUEST FROM THE COASTAL COMMUNITY DEVELOPMENT CORPORATION AND BE RETURNED TO THE FINANCE ADMINISTRATOR COMMITTEE ONE TO SEEK LEGAL OPINIONS REGARDING THE APPLICATION OF ACT 57 OF 2023 AND THE ABILITY TO USE ACCOMMODATION TAX WORKFORCE HOUSING TO DETERMINE SOURCES OF FUNDING IN SUPPORT OF THE CITY. C. C.

D. C PROGRAM AND THREE TO OUTLINE TERMS OF THE RELATIONSHIP FOR A SECOND PROGRAM A SECOND OC. ALL THOSE IN FAVOR PLEASE COMMENT.

WELL WE'VE ALREADY DONE PUBLIC COMMENT. I KNOW IN RESPONSE OKAY YOU KNOW SO ALL THOSE IN FAVOR PLEASE SIGNIFY BY RAISING YOUR RIGHT HAND ON THE PROPOSED.

[02:35:04]

I WOULD JUST LIKE TO MAKE A COMMENT THAT WHEN WE MAKE COMMENTS ABOUT NOT MY BACKYARD.

I WONDER HOW MANY PEOPLE BEHIND GATES WOULD LIKE TO PONY UP SOME LAND THERE SO PART IT'S GOING BACK TO THE HABITAT COMMITTEE WENT BACK TO THE FINANCE ADMINISTRATIVE COMMITTEE FOR FURTHER AND UNDERSTANDING AND LEGAL LEGAL INPUT AND FUNDING SOURCES AND A VOTE OF 5 TO 1 ON TWO OTHER BUSINESS. LET'S SEE WHERE ARE WE RIGHT AT THE RIGHT AT THE BEGINNING. RIGHT IF ANY CONSIDERATION OF RESOLUTION TO AUTHORIZE THE

[11.b. Consideration of a Resolution to Authorize Submittal of the CDBG Entitlement Program Consolidated Annual Performance Evaluation Report (CAPER) for Program Year 2022 to the U.S. Department of Housing and Urban Development – Marcy Benson, Senior Grants Administrator]

MIDDLE OF THE SEABEE CDBG ENTITLEMENT PROGRAM CONSOLIDATION ANNUAL PERFORMANCE ELEVATION EVALUATION REPORT CAPER FOR PROGRAM YOUR 2022 THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR RESIDENTS GOOD AFTERNOON.

FOR THE RECORD MY NAME IS MARCY BENSON SENIOR GRANTS INVESTIGATOR FOR THE TOWN BEFORE YOU TONIGHT IS THE RECOMMENDATION FROM THE FINANCE AND ADMINISTRATIVE COMMITTEE FOR APPROVAL A RESOLUTION AUTHORIZING THE SUBMITTAL OF THE PROGRAM YEAR 2022 COMMUNITY DEVELOPMENT GRANT CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT WHICH IS REQUIRED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR PARTICIPATION IN THE CDBG PROGRAM ON AUGUST 15TH THE FINANCING ADMINISTRATIVE COMMITTEE VOTED UNANIMOUSLY TO MOVE THIS ALONG TO THE FULL COUNCIL AND THE PAPER OUTLINES CDBG FUNDS WERE SPENT DURING THE PROGRAM AND THE PROGRESS THAT WAS MADE TOWARDS THE GOALS OUTLINED THE FIVE YEAR CONSOLIDATED PLAN AS WELL AS THE ANNUAL ACTION PLAN .

THE PAPER WAS RELEASED FOR ITS REQUIRED 15 DAY PUBLIC COMMENT PERIOD ON AUGUST 16.

ON THE SAME DAY A PUBLIC MEETING WAS HELD WE RECEIVED NO COMMENTS.

NO MEMBERS OF THE PUBLIC ATTENDED THE MEETING AND THAT WILL BE SUMMARIZED AT THE CONCLUSION OF THE MEETING TODAY AND IF YOU APPROVE THIS SUBMITTAL WHICH WAS SUBMITTED TO HUD BY THE SEPTEMBER 28TH I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

COUNCIL HAVE QUESTIONS FROM COUNCIL EMOTIONAL AND EMOTIONAL I'M COUNCIL AUTHORIZED TO ALL OF THE SINGLE DIGIT ENTITLEMENT PROGRAM CONSOLIDATED ANNUAL EVALUATION PAPER FOR THE PROGRAM YEAR OF 2020 TO SECOND OKAY IS THERE ANY DISCUSSION FROM THE PUBLIC SEEING THEM? WE'LL BRING IT BACK TO THE DAIS AND ALL THE TWO FAVORITE PLEASE SIGNIFY YES BY RAISING YOUR

[11.c. Consideration of a Resolution Extending the Term of the Memorandum of Understanding between the Town of Hilton Head Island and the Island Recreation Association – Josh Gruber, Deputy Town Manager]

RIGHT HAND THAT IS UNANIMOUS. THANK YOU AND SEE NEXT CONSIDERATION OF A RESOLUTION EXTENDING THE TERM OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF HILTON HEAD ISLAND AND THE ISLAND RECREATION ASSOCIATION. MR. GROUP GOOD AFTERNOON MAYOR AND MEMBERS OF COUNCIL. THE ITEMS IN YOUR PACKAGE INDICATE THAT BACK IN 2018 THE TOWN ENTERED INTO A MEMORANDUM OF UNDERSTANDING WITH THE ISLAND RECREATION ASSOCIATION THE TERM OF THAT AGREEMENT WAS TO RUN UNTIL SEPTEMBER 30TH OF THIS YEAR.

A COUPLE OF MONTHS AGO WORKING GROUP WAS CREATED CONSISTING OF MEMBERS OF TOWN COUNCIL MEMBERS, THE ISLAND RECREATION ASSOCIATION BOARD AND THEN STAFF FROM BOTH ENTITIES TO BEGIN DRAFTING A NEW AGREEMENT. WE ARE ACTIVELY IN THE PROCESS OF BRINGING THAT FORWARD.

WE ANTICIPATE AT THIS TIME HOPEFULLY BEING ABLE TO BRING THIS MATTER TO THE FINANCE AND ADMINISTRATION COMMITTEE AT OCTOBER 17TH MEETING AND THEN HOPEFULLY SOME TIME TO TOWN COUNCIL THEREAFTER. BUT GIVEN THAT THAT DOES CREATE A LITTLE BIT OF A GAP WE BROUGHT A RESOLUTION FOR TOWN COUNCIL TO AUTHORIZE AN EXTENSION OF THE EXISTING AGREEMENT ON ITS SAME TERMS AND CONDITIONS TO COVER THAT UNTIL A NEW AGREEMENT IS BROUGHT BEFORE TOWN COUNCIL FOR YOUR CONSIDERATION ANY QUESTIONS OR DISCUSSION WAS SEEN ON WE HAVE A MOTION YES I MOVE THAT COUNCILOR PREPARE A RESOLUTION EXTENDING THE TERMS OF THE MEMORANDUM OF UNDERSTANDING THE TOWN OF HILTON HEAD ISLAND AND THEIR ISLAND RECREATION ASSOCIATION THEY OKAY ANY DISCUSSION FROM THE AUDIENCE BEING DONE WILL BRING IT BACK TO THE DAIS ALL THOSE IN FAVOR BY RAISING YOUR RIGHT HAND UP MOVED 6 TO 0 MR. ORLANDO DO WE

[12. Executive Session]

HAVE A NEED FOR AN EXECUTIVE SESSION? YES SIR.

ITEM 12 ITEMS A THROUGH E ARE SHOWN ON THE AGENDA. OKAY I MAY HAVE COUNSEL INTO EXECUTIVE SESSION FOR THE REASONS CITED BY TOWN MANAGER ALL THIS ENDEAVOR PLEASE RAISE YOUR RIGHT HAND I'LL MOVE I YOU SURE

* This transcript was compiled from uncorrected Closed Captioning.

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Sep 19, 2023 Hilton Head Island Town Council

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