Feb 08, 2024 Town of Hilton Head Public Planning Committee

[1. Call to Order]

[00:00:03]

AND LIKE THE LEG. WELCOME TO THE FEBRUARY PUBLIC PLANNING COMMITTEE MEETING IN

[2. Adoption of the Agenda]

IS THERE A SECOND SECOND VERY MUCH MR. JAMES TO THE MOTION YOU MAY I'M GOING TO VOTE AGAINST THIS MOTION I'M NOT THE EXECUTIVE SESSION PART BUT BECAUSE WE'VE BEEN AT THIS LODGE FOR MONTHS NOW AND I RESPECT THE STAFF HAS GIVEN US SOME MORE INFORMATION BUT THE SECOND PROPOSAL THE NEW PROPOSAL EXISTS IN A DIFFERENT DIRECTION WHICH REQUIRES MORE ANALYSIS RAISES QUESTIONS I HAVE NOTWITHSTANDING THAT I HAVE MADE MY ANALYSIS I HAVE A LIST OF QUESTIONS AND I'M READY TO PROCEED. SO I'M GOING TO VOTE AGAINST THIS. THANK YOU. THANK YOU, MR. ROSEN.

I CALL THE QUESTION ALL THOSE IN FAVOR OF THE MOTION RAISE YOUR RIGHT HAND.

I SEE THREE ONE AGAIN. THANK YOU, KIMBERLY. DO WE HAVE CITIZENS WHO WISH TO SPEAK THIS MORNING WE DO. WE SHOULD PROBABLY APPROVE THE MINUTES FIRST.

[3. Approval of the Minutes]

[4. Appearance by Citizens]

THIS IS DONE. YES. ALL RIGHT.

SO MY NAME IS JAY SADOWSKI ON THE 28TH FLOOR OCCURRED WEST WESTERN CITY PINES AND I'M ALSO ONE OF THE OWNERS OF BEACH STATE ISLANDS. WE'RE SMALL BOUTIQUE SHORT TERM RENTAL PROPERTY MANAGEMENT COMPANY OF OUR HOUSES ARE IN SEA PINES.

I'M HERE TO TALK ABOUT THE PROPOSED SHORT TERM MAXIMUM OCCUPANCY REGULATIONS.

I DID ALSO SUBMIT SOME COMMENTS ONLINE SO IF YOU JUST LOOK AT THOSE TWO AREAS I WANT TO FOCUS ONE IS THAT JUST THE TIMING OF THE REGULATION CHANGES THAT YOU'RE TALKING ABOUT.

SO I UNDERSTAND THAT THE PROPOSED CHANGES STARTING MAY 1ST 2024 THAT'S ACTUALLY REALLY PROBLEMATIC I THINK FOR THE INDUSTRY AS A WHOLE THE BIGGER THE HOUSE THE MORE NUMBER OF PEOPLE COMING, THE FURTHER THESE HOUSES ARE BOOKED IN ADVANCE.

SO OUT OF THE 20 HOUSES THAT WE MANAGED I THINK WE HAVE ONE THAT MIGHT BE IMPACTED BY THE PROPOSED REGULATIONS AND THAT IS FULLY BOOKED MAY, JUNE, JULY, AUGUST.

SO WE'VE ALREADY SEEN CONTRACTS WITH THESE AND YOU KNOW, IT'S JUST REALLY, YOU KNOW, HARD TO HIT A MOVING TARGET BUT YOU KNOW, WE'RE ALL TRYING TO PLAY BY THE RULES HERE BUT IT'S VERY, VERY CHALLENGING WHEN WE'RE DOING BUSINESS ALL THESE GUYS CAN'T COME NOW YOU GOT TO GET IT OUT YOUR FRIENDS ON YOUR NEPHEW, RIGHT? I THINK YOU HEAR WHAT I'M SAYING. YEAH. THE SECOND IS, YOU KNOW, I QUESTION WHETHER THERE IS A NEED FOR ADDITIONAL REGULATION .

YOU KNOW, THE STAFF REPORT TALKS ABOUT CONTINUOUS CONCERN WITH PARKING AND SHORT TERM RENTALS. IT'S VERY LIGHT ON SPECIFICS ON SO I HAVE SUBMITTED A FOIA REQUEST AT THE END AUGUST JUST TO GET A LIST OF ALL THE OR CONCERNS THAT WERE SUBMITTED TO THE SHORT TERM HOT OUTLINE. SO ROUGHLY 6900 PERMITTED SHORT TERM RENTALS I'VE HEARD OF THE STATS THAT THERE'S PROBABLY 10,000 ON THE ISLAND IN GENERAL I'M YOU KNOW THROUGH AUGUST 2023 THERE WAS 215 COMPLAINTS FILED IN THOSE WERE ABOUT PARKING THREE ACTUAL VIOLATIONS

[00:05:08]

THANK YOU, PATRICIA COURTNEY THERE'S COURTNEY. I'M PART OF VRA AS WELL AS OWNS SOME RENTALS AND HOW MANY ARE DUNES? THEY HAPPEN TO BE VILLAS BUT I ACTUALLY WANTED TO ECHO WHEN HE SAID WE HAD BEEN PROMISED DATA AND WE'RE TRYING TO FIX A PROBLEM THAT YOU HAVE YET TO FIND THAT THE PROBLEM IS YOU PUT IN ALREADY ONE YEAR OF PERMITTING YOU HAVE THE DATA, YOU HAVE THE RESULTS AND IT'S NOT SPEAKING TO THIS MAJOR PROBLEM YOU'RE TRYING TO SOLVE. I THINK IN A WE IDENTIFY A PROBLEM AND THEN WE TRY COME UP SOLUTIONS. WE'RE COMING UP WITH SOLUTIONS WHERE WE HAVE AN AND SPELLED OUT EXACTLY WHAT THE PROBLEM IS GOING FORWARD TO LOOK AT LIMITING HOW YOU ALLOW BUILDS IN THE FUTURE THAT'S A DIFFERENT STORY BUT WHAT YOU'RE DOING WITH THINGS THAT ARE ALREADY BUILT WHEN YOU'VE ALREADY PUT IN AN ASKED YOUR AND IT IS WORKING BASED ON THE NUMBERS THAT WE HAVE GOTTEN FROM WE ALL REQUEST WHAT ARE YOU TRYING TO SOLVE BECAUSE I DON'T THINK YOU'RE SOLVING ANYTHING YOU'RE JUST PUTTING SOMETHING IN MOTION RATHER THAN DATA RATHER THAN EXPERIENCE. THAT'S ALL I'M SAYING. THANK YOU VERY MUCH ELIZABETH PEDRO, GOOD MORNING. THANK YOU FOR HEARING COMMENT AND WELL I HAD A STATEMENT PREPARED WHILE I WAS ON THE AGENDA. NOW THAT THAT'S REMOVED I WANT TO THANK YOU FOR MAKING THAT AGENDA AMENDMENT AND TAKING THE TIME THAT'S NEEDED TO TO RESEARCH THE DATA THAT WE HAVE WE'VE GOTTEN SOME DATA CLEARLY NOT ENOUGH BUT IN THE DATA THAT RECEIVED I DON'T UNDERSTAND AND CANNOT SEE WHAT HAS BROUGHT US TO THE NEED TO CHANGE THE CURRENT ORDINANCE AS IT SITS AS THE PREVIOUS PEOPLE THAT HAVE SPOKEN HAVE SAID THE DATA DIDN'T THAT THERE WAS A HUGE NEED FOR CHANGES TO THE CURRENT ORDINANCE SO I APPRECIATE YOU TAKING THIS OFF THE AGENDA AND TAKING THE TIME TO REALLY UNDERSTAND THAT TRYING TO IMPLEMENT SOMETHING IN A 90 DAY TIME PERIOD WE DO ALL HAVE FIDUCIARY ON TRACKS WITH ALL OF OUR CLIENTS AS WE'RE HAVING THEM TOWN SIGN ALL THE TOWN DOCUMENTS IN THE TOWN REQUIREMENTS WE'RE ALSO HAVING THEM SIGNED OUR RESPONSIBILITY TO HAVE THESE PROPERTIES AVAILABLE TO THEM AS THEY'RE ADVERTISED. AS HE THE GENTLEMAN SAID THEY ARE SIGNED MANY TIMES UP TO A YEAR TO A YEAR AND A HALF IN ADVANCE.

SO WHATEVER CHANGES WHILE WE HOLD THEM TO BE FAIR AND REASONABLE THEY NEED TO BE IMPLEMENTED IN TIME. THAT MAKES SENSE NOT AFTER PERMITS HAVE BEEN ISSUED.

THANK YOU. THANK YOU. LEE STEPHENS.

GOOD MORNING. GOOD MORNING. I WANT TO THANK YOU FOR TAKING ON THIS ISSUE. I'VE REVIEWED THE PLANS FROM THE LAST COMMITTEE FROM THE COMMITTEE AND ALSO THE START OF THE PLAN AND I THINK THE STAFF'S PLAN IS THE BETTER OF TWO. I THINK WHATEVER CHANGES COME MADE TO THEM HAVE TO BE MADE TO ADDRESS OCCUPANCY AND NEED TO BE BULLET AND CONSIDER ALL LOOPHOLES.

I'M NOT PRESIDENT OF A SMALL YOU KNOW INSIDE OF SEAPLANES 190 HOMES, ABOUT 40% OF OUR OWNERS RENT AND THE OTHER 60% IS SPLIT HALF BETWEEN FULL TIME AND THOSE THAT HAVE A SECOND HOME AND OCCUPANCY I THINK IS SOMETHING THAT NEEDS TO BE ADDRESSED.

I DON'T WANT TO I THINK A LOT OF THE THINGS THAT YOU PUT IN PLACE ALREADY ARE WORKING.

BUT FOR EXAMPLE, THERE'S A HOME IN SEA PINES, A THREE BEDROOM, TWO BATH HOUSE THAT LISTS ON LISTS FOR RENT FOR SLEEPS 24 BECAUSE THEY'VE TAKEN THE LIVING ROOM AND CONVERTED IT INTO A BUNK ROOM. SO I DO SEE OCCUPANCY AS AN ISSUE HOW YOU CONTROL IT.

I AGREE WITH SOME OF THE PREVIOUS SPEAKERS YOU NEED TO LOOK AT DATA BUT I THINK THAT THE STAFF'S PLAN OF COMBINING PARKING AND CAPACITY IS A GOOD THING AND IT'S SOMETHING THAT YOU SHOULD CONTINUE TO CONSIDER . I ALSO THINK THAT THE REASON I PREFER THAT PLAN IS IT ADDRESSES HOUSES OF ALL SIZES. I THINK PEOPLE ARE LOOKING AT THE BIG HOUSES BUT THE SMALL HOUSES ARE ALSO AN ISSUE BECAUSE PEOPLE TRYING TO JAM A

[00:10:05]

I HAPPENED TO HAVE REACHED OUT TO STEVE ALFRED LAST ABOUT THAT HOUSE AND SEE FINE SO I'M I'M GLAD THAT THIS HAS BECOME AN ISSUE THAT YOU'RE TALKING ABOUT.

THE OTHER THING I WOULD MENTION AS FAR AS PARKING IS THAT GARAGE PARKING SHOULDN'T BE CONSIDERED ONLY IN MOST CASES THE OWNERS LOCK OFF THE GARAGE AND DON'T MAKE IT AVAILABLE IF YOU CONSIDER THAT AS PART OF YOUR PARKING CAPACITY PARKING TO CAPACITY PLAN YOU'RE PROBABLY ELIMINATING ONE OR TWO PARKING SPOTS. SO THAT'S ALL.

THANK YOU. THANK SIR. MARTIN ROSEMAN.

MARTIN ROSEMAN. THAT'S ALL I HAVE. THANK YOU VERY MUCH, JIM.

[5.a. Consideration of an Ordinance to Amend the Town of Hilton Head Island Comprehensive Plan to Incorporate a Housing Impact Analysis - Missy Luick, Director of Planning]

ACTIVITY SEVEN ALLOWS LOCAL GOVERNMENTS TO UTILIZE A PORTION OF ITS STATE OR LOCAL ACCOMMODATIONS, TAXES OR BOTH TO BE UTILIZED IN THE DEVELOPMENT OF QUALIFIED WORKFORCE HOUSING AS A TOURISM RELATED EXPENDITURE THE ACT REQUIRES THAT A LOCAL GOVERNMENT ENTITY WHO WANTS TO UTILIZE STATE TAX FOR WORKFORCE HOUSING TO COMPLETE A HOUSING IMPACT ANALYSIS. SO THIS DOCUMENT BEFORE YOU IS LIKE THE PREREQUISITE REQUIREMENT THAT NEEDS TO BE ADOPTED AS AN AMENDMENT TO OUR COMPREHENSIVE PLAN TO BE ABLE THEN UTILIZE THAT ADDITIONAL FUNDING SO THAT HOUSING IMPACT ANALYSIS DOCUMENT ITSELF SERVES AS A FOUNDATIONAL TOOL TO INFORM DECISION MAKING AND POLICY.

AND THERE ARE SEVERAL TOPICS THAT WE'RE GOING TO GO THROUGH. AND WITHIN THOSE COMPONENTS IT SHOWS US A HOLISTIC UNDERSTANDING OF OUR COMMUNITY'S HOUSING LANDSCAPE AND HOW WE CAN IMPLEMENT TARGETED SOLUTIONS TO MEET OUR HOUSING NEEDS.

SO THE ACT ITSELF DEFINES WORKFORCE HOUSING AND IT IS DEFINED IN THE ACT AS HOUSING FOR RENT OR SALE THAT'S APPROPRIATELY PRICED FOR RENT OR SALE TO A PERSON OR FAMILY WHOSE INCOME FALLS WITHIN 30% AND 120% OF THE MEDIAN INCOME FOR THE LOCAL AREA WITH ADJUSTMENTS FOR HOUSEHOLD SIZE. ACCORDING TO THE LATEST FIGURES AVAILABLE FROM THE U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR HUD TO BOOK THE EXPENDITURES OF BOTH STATE AND LOCAL TAX ARE CAPPED AT 15% OF THE LOCAL GOVERNMENTS COLLECTIONS.

THE ACT DOES HAVE A SUNSET DATE AND AS WRITTEN THE ACT WOULD NO LONGER BE AS OF DECEMBER 31, 2030. AGAIN HOUSING IMPACT ANALYSIS DOCUMENT MUST BE COMPLETED PRIOR TO SECOND READING OF AN ORDINANCE TO TOWN COUNCIL FOR APPROVAL AND THE APPROVAL PROCESS IS AN AMENDMENT TO THE COMPREHENSIVE PLAN TO INCLUDE A HOUSING IMPACT ANALYSIS SO THE ACT TO FIND THE COMPONENTS THAT MUST BE INCLUDED IN THE HOUSING IMPACT ASSESSMENT AND THOSE INCLUDE THE COST OF DEVELOPING CONSTRUCTION REHABILITATING, IMPROVING, MAINTAINING OR OWNING SINGLE FAMILY OR MULTIFAMILY DWELLINGS. AN ANALYSIS OF THE RELATIVE IMPACT OF THE ORDINANCE ON AND MODERATE INCOME HOUSEHOLDS AND THEN SOME COST INFORMATION ON HOUSING RELATED TO ESTIMATES OF THE EFFECT ON HOUSING COSTS AND A NUMBER OF OTHER ANALYZES RELATED TO HOUSING COST. ANOTHER REQUIREMENT THAT THE HOUSING IMPACT ANALYSIS BE PROVIDED TO SEVERAL AGENCIES THE DEPARTMENT OF AND THE TOURISM EXPENDITURE REVIEW

[00:15:07]

SO THE HOUSING IMPACT ANALYSIS HAS FIVE AREAS OF FOCUS THAT ARE HIGHLIGHTED HERE EMPLOYING AN ANALYSIS HOUSING MARKET ANALYSIS HOUSING MARKET CONDITIONS, CONSTRUCTION AND DEVELOPMENT COSTS AND SOLVING THE HOUSING CRISIS. THE FOLLOWING SLIDES WILL GO THROUGH EACH OF THOSE SUBJECTS AND IT PULLS SOME OF THE HIGHLIGHTS FROM THE PLAN ITSELF AND. THE PRESENTATION. SO FIRST EMPLOYMENT ANALYSIS SUMMARY HIGHLIGHTS THE PERCENTAGE OF VARIOUS EMPLOYMENT SECTORS AND INCOMES THE REGION AND THE TOWN OF HILTON HEAD TOURISM SERVICE RELATED EMPLOYMENT SECTORS REMAIN THE TOP EMPLOYMENT SECTORS ON THE WHICH SHOWS THE NEXUS FOR THE NEED OF WORKFORCE HOUSING WITHIN THOSE SECTORS AND ALSO THAT HOUSEHOLDS ARE CONSIDERED TO BE COST IF THEY SPEND OVER 30% OF THEIR HOUSEHOLD INCOME ON HOUSING AND CONSIDERED EXTREMELY COST BURDENED IF THEY SPEND OVER 50% OF THEIR HOUSEHOLD INCOME. WE USE A LOT OF DATA AND STATISTICS IN THIS REPORT AND THE BUREAU OF LABOR STATISTICS INDICATED THAT WORKERS IN THE HILTON HEAD ISLAND BLUFFTON, BEAUFORT, SOUTH CAROLINA AREA AT AN AVERAGE HOURLY WAGE 2221 WHICH IS 25% BELOW THE NATIONWIDE AVERAGE OF $29.76. WHEN WE ALSO LOOKED AT AND ONE OF A COMMENT THAT CAME UP DURING THE PLANNING COMMISSION'S PUBLIC HEARING ON THIS TOPIC WHAT DID ADDITIONAL ANALYSIS ON OUR EMPLOYMENT SECTOR OVERALL AND I THINK YOU'RE AWARE THAT OUR COMMUNITY HAS JUST UNDER THOUSAND RESIDENTS THAT WE HAVE APPROXIMATE ONLY 24,400 JOBS TOTAL AND THAT OF THOSE JOBS 8800 OF THOSE JOBS ARE FILLED BY PEOPLE WHO LIVE AND WORK ON THE ISLAND AND 14,600 ARE JOBS THAT ARE FILLED BY PEOPLE WHO COMMUTE ONTO THE ISLAND. THE PREDOMINANT INDUSTRY SECTORS IS WE'RE A RESORT BASED ECONOMY ARE IN THOSE SERVICE RESORT ACCOMMODATION AND FOOD SERVICE SECTORS.

WE ALSO HAVE 34,000 HOUSING UNITS ON HILTON HEAD WE HAVE JUST OVER 7000 SHORT TERM RENTALS AND. WE ALSO HAVE 3 MILLION VISITORS WHO COME TO OUR ISLAND.

SO SOME OF THAT JUST BACKGROUND ON OUR DEMOGRAPHICS OF OUR ISLAND ARE IMPORTANT CONSIDERATIONS FOR THE EMPLOYMENT SECTOR THAT WE SERVE HERE ON THE ISLAND AND AND THE IMPORTANCE OF THIS WORK TO BE ABLE TO HOUSE THE WORKFORCE WE NEED.

SO AGAIN THIS SECTION PULLED DATA AGAIN FROM VARIOUS SOURCES THE BUREAU OF LABOR STATISTICS AS WELL. IT SHOWS SOME OF THOSE OCCUPATIONS, THE SECTORS IT SHOWS SOME HOURLY AND ANNUAL SALARIES AND WHAT HOUSING AFFORDABILITY WOULD BE BASED ON THOSE SALARIES AND THOSE OCCUPATION CATEGORIES AND WHAT THEY COULD PAY WITH A 30% HOUSING AFFORDABILITY RULE OF THUMB SO THEY'RE NOT COST BURDENED AND OR THE 50% RATE PER CURRENTLY ON THE ISLAND THE AVERAGE CURRENT MEDIAN RENT IS 1330.

I KNOW THAT THAT SOUNDS LIKE A LOW FIGURE BUT IN ACCOMMODATES THAT WE HAVE SOME EXISTING PROTECTED WORKFORCE HOUSING OR NATURALLY OCCURRING WORKFORCE HOUSING THAT IS VERY RARELY AVAILABLE ON THE OPEN MARKET AND SO MARKET RENTS WHAT YOU WOULD SEE ADVERTISED ON OR BY A

[00:20:02]

BUT THE DATA SHOWS US THAT THE CURRENT MEDIAN RENT IS 1330 ON THE ISLAND.

SO THEN WE MOVE TO THE MARKET ANALYSIS SUMMARY AND THIS CHAPTER HIGHLIGHTS THE CURRENT COST OF HOUSING ON THE ISLAND OF BOTH SINGLE FAMILY DWELLINGS AND CONDOS AND VILLAS AND THERE ALSO WAS NATIONAL REAL ESTATE DATA INFORMATION THAT WE SOURCED FROM THE REALTORS ASSOCIATION AS WELL AS THE LOCAL HOMEBUILDERS ASSOCIATION THERE.

SO THERE'S A REPORT THAT SHOWS HOUSING COST OVER TIME. THE CHART GOES FROM 2008 TO 2023. THE 2022 YEAR END MARKET TREND ANALYSIS INDICATED AN INCREASE SIGNIFICANTLY IN MEDIAN SALES COST ON THE ISLAND OF BOTH SINGLE FAMILY AND DETACHED HOMES BETWEEN 15 AND 20% INCREASES ALSO THERE'S A AFFORDABILITY INDEX THAT WE TO AS WELL IN THAT SAME TIME LINE THIS CHART SHOWS THE CONTINUING CONTINUING TREND OF HOUSING BECOMING LESS AFFORDABLE BASED ON AVERAGE INCOMES ON THE ISLAND THE LOWER NUMBER THE LESS AFFORDABLE THE COMMUNITY IN THIS PARTICULAR CHART THE HOUSING MARKET CONDITIONS SUMMARY HIGHLIGHTS VARIOUS FACTORS RELATED TO THOSE INCREASING HOUSING COSTS AND IT FOCUSES ON THE TENANTS HOUSING HOUSING COSTS VERSUS OTHER RAPIDLY GROWING MARKETS WITHIN SOUTH CAROLINA AND THESE COMMUNITIES COMPETE FOR THE SAME EMPLOYMENT SECTORS AND EMPLOYEES IN HILTON HEAD WAS MOST EXPENSIVE HOUSING MARKET WHEN WE COMPARED OTHER COMMUNITIES AS YOU CAN SEE ON THE SCREEN SO THAT'S A HOUSING MARKET CONDITION SUMMARY ALSO INTO DETAIL ON THE GROWTH IN HOUSING PRICES OVER THE LAST COUPLE OF YEARS.

BOTH OF THESE CHARTS SHOW THE TOP ONE SHOWS ALL HOME TYPES IN THE AVERAGE IS JUST UNDER 800,000 WITHIN JUST THE LAST THREE YEARS AND THE BOTTOM CHART IS THE SAME TIME TABLE JUST FOR SINGLE FAMILY HOMES AND IT SHOWS THAT AT THE END OF 2023 THE MEDIAN PRICE FOR A SINGLE FAMILY HOME ON HILTON HEAD ISLAND WAS OVER $1 MILLION .

SO THE CONSTRUCTION AND DEVELOPMENT COST HIGHLIGHTS SPECIFIC DEVELOPMENT COSTS IMPACTING HOUSING AFFORDABILITY AND IT COVERED A NUMBER OF SOME TOPICS AND IT'S I THINK IF ANYONE WHO'S BEEN WORKING ON THEIR HOME OR HAVE OPENED THEIR HOME INSURANCE, THEY UNDERSTAND THAT THERE ARE SOME CHANGES IN THOSE MARKETS. CONSTRUCTION COSTS HAVE INCREASED AS WELL AS MORTGAGE RATES AND INSURANCE COSTS. SO THE CHAPTER HIGHLIGHTS SOME FACTORS INCLUDING LAND COSTS. AND AS YOU'RE WELL WELL AWARE OUR ISLAND CONSISTS OF 70% OF ITS LAND AREA IS IN A PLANNED DEVELOPMENT WHICH MINIMIZES THE AVAILABILITY OF LAND THAT'S AVAILABLE FOR THE PRODUCTION OF WORKFORCE HOUSING AND IN MORE AFFORDABLE LAND THAT WOULD BE CONDUCIVE FOR A WORKFORCE HOUSING PROJECT .

ALSO WE IN THE RESEARCH THAT DEVELOPED THIS REPORT SPOKE TO SOME AREA LAND DEVELOPERS AND THEY INDICATED THAT THE LAND COST ALONE FOR AN APARTMENT OR A MULTI FAMILY DEVELOPMENT CAN BE VERY HIGH ON A PER ACRE BASIS. WE ALSO LOOKED AT CONSTRUCTION COSTS AND DEVELOPMENT FEES AND HOW THOSE CHANGING AS FAR AS CONSTRUCTION COSTS THE AVERAGE PLACE PER SQUARE FOOT THAT WE IDENTIFIED IN RESEARCH WAS 541 AND ADDITIONAL RESEARCH JUST SHOWS AN INCREASE IN THAT CONSTRUCTION COST FROM A POINT IN FROM 2021 TO 2023.

AND SO IF YOU WERE GOING TO EQUATE THAT TO A THOUSAND SQUARE FOOT HOUSE AND BETWEEN THAT TIME FRAME CONSTRUCTION CONSTRUCTION PRICING GREW FROM 279000 TO 540000 AND THAT IS NOT INCLUSIVE OF LAND USE INSURANCE AND THAT'S JUST CONSTRUCTION.

SO WE DO HAVE DEVELOPMENT FEES AND WE ANALYZE WHAT AN AVERAGE FEE BASIS WOULD BE FOR AN APPROXIMATE $20 MILLION DEVELOPMENT OF 50 DWELLING UNITS ON A SCENARIO THAT'S

[00:25:03]

SO THAT COULD BE AROUND $360,000 AND ALSO THERE ARE PERMIT FEES AND IMPACT FEES THAT CAN ADD UP TO TO EQUATE TO BE AROUND $3,000 PER UNIT. I BRIEFLY TALKED ABOUT THE INCREASE IN THE INSURANCE COST . THERE HAVE BEEN ARTICLES AND NOTES. INSURANCE COSTS HAVE RISEN SIGNIFICANTLY AND IN CASES 500% INCREASES. WE HAVE SEVERAL DATA POINTS THAT INDICATED THAT INSURANCE POLICIES ON THE ISLAND HAVE DOUBLED OR TRIPLED WITHIN THE PAST TWO YEARS.

ALSO MORTGAGE RATES HAVE BEEN INCREASING AS WELL AND THAT LIMITS AFFORDABLE HOMEBUYING OPPORTUNITIES. IN 2023 INTEREST RATES WERE AS HIGH AS 8% AND THE FINAL SECTION IN THE HOUSING IMPACT ANALYSIS IS SOLVING THE HOUSING HOUSING CRISIS SUMMARY AND CHAPTER HIGHLIGHTS PAST CURRENT AND FUTURE STRATEGIES THE TOWN HAS IMPLEMENTED OR WILL CONSIDER IMPLEMENTING CERTAINLY A POST FROM THE GUIDING WORKFORCE HOUSING FRAMEWORK THAT WAS ADOPTED IN NOVEMBER OF 2022 AS A KEY STEP IN ADDRESSING OUR HOUSING PROGRAMS AND POLICIES TO PRESERVE AND PRODUCE MORE WORKFORCE HOUSING ON THE ISLAND.

ALSO WITH THE ADOPTION OF THE HOUSING IMPACT ANALYSIS AND THAT ENABLES THE TOWN TO HAVE THE AUTHORITY TO UTILIZE UP 15% OF THE LOCAL TAX MONEY TO SUPPORT WORKFORCE HOUSING.

SO TIMELINE THAT WE THAT THIS WORK HAS HAS GONE THROUGH I GUESS I DID NOT GET ON THERE THE HOUSING ACTION COMMITTEE REVIEWED THE HOUSING IMPACT ANALYSIS AT TWO MEETINGS AND IN NOVEMBER AND THEN RECOMMENDED IT TO TOWN COUNCIL FOR APPROVAL IN AND THEN AFTER THE HOUSING ACTION COMMITTEE DID THAT THEN WE PUBLISHED THE LEGAL AT THE PLANNING COMMISSION'S PUBLIC HEARING WHICH WAS HELD ON JANUARY 17TH AND WE ARE HERE TODAY ON FEBRUARY 8TH AND ANTICIPATE IF THIS MOVES FORWARD THAT WOULD BE A PUBLIC REVIEW TIMELINE THAT REMAINS SO THAT KIND WRAPS UP MY PRESENTATION. DO YOU HAVE ANY QUESTIONS? LET ME ASK AGAIN WHAT I WOULD LIKE TO SAY MISSING YOU GUYS DID A GREAT JOB.

IT'S A GOOD REPORT AND I APPRECIATE THE EFFORT THAT WAS PUT INTO THANK YOU AND NO QUESTIONS FROM ME BUT A COMMENT WE JUST RETURNED FROM A MEETING OF THE MUNICIPAL ASSOCIATION OF SOUTH CAROLINA WHERE THERE WERE SESSIONS EDUCATING LOCAL GOVERNMENT OFFICIALS ABOUT MANY MATTERS. THIS IS ONE OF THEM AND I'M PLEASED TO SAY THAT THE TOWN OF HILTON HEAD IS A LEADER IN THIS ON PRESENTATION WAS DONE BY THE GENERAL COUNSEL OF MUNICIPAL ASSOCIATION AND OUR DEPUTY TOWN MANAGER JOSH GRUBER.

SO WE STAND IN THE STATE AS TAKING ALL THIS AND WE GOING TO BE LOOKED TO FOR AN EXAMPLE OF HOW TO DO A HOUSING IMPACT ANALYSIS BECAUSE IT IS SO WELL DONE AND KUDOS TO THE STAFF THAT WORKED ON THIS SO HARD. I THINK THAT WE LIKE TO BE AHEAD OF THE GAME AND TO PROVIDE LEADERSHIP HERE AND THE STATE. SO THANK YOU VERY MUCH FOR MOVING THIS ALONG ESPECIALLY AS FIRST OUT OF THE BOX ON MR.. DO YOU HAVE ANY COMMENTS OR QUESTIONS FOR MR.. YES I ASSUME YOU CAN HEAR ME. I WANT TO SAY THIS THIS IS AN OUTSTANDING WORK PRODUCT I COMPLIMENT YOU AND YOUR TEAM IN PUTTING THIS TOGETHER AND I WOULD SAY IT'S GOT TO BE PRETTY SCARY THE NUMBERS THAT WE'RE FACING HERE ON THE COST OF HOUSING AND THE COST OF RENTAL HOUSING ON THIS ISLAND AND SO WE NEED TO IMPLEMENT AS MANY TOOLS AS WE CAN DEVISE TO TRY TO MEET THIS PROBLEM.

AND I THINK YOU'VE GIVEN US A ROAD A ROAD PATH MOVING FORWARD.

SO THANK YOU VERY MUCH. GREAT JOB AS HE STAFF HAS DONE AN OUTSTANDING JOB ON I COULD CHALLENGE SOME OF THE ASSUMPTIONS IN IT BUT MY CONCLUSION IS THAT IT WOULD HAVE ENORMOUS IMPACT ON ANY SORT OF STRATEGIC DECISIONS THAT COUNCIL WOULD MAKE.

SO CONGRATULATIONS GOOD JOB AND YOU ARE FOR OUR APPROVAL OF AN ORDINANCE TO AMEND TITLE TEN CHAPTER TWO OKAY TITLE TEN CHAPTER TWO THANK YOU FOR AT AND THEN THE COMPREHENSIVE PLAN

[00:30:08]

IS THERE A MOTION TO DO SO? WE WANT TO AS FOR PUBLIC COMMENT FIRST BEFORE WELL NORMALLY YOU I THINK DO THE PROVIDE THE MOTION AND THE ALLOW THE PUBLIC COMMENT ON THE MOTION TO COMMENT ON THE MOTION IF YOU PREFER TO DO IT THE OTHER WAY MANNER I AM HAPPY TO PUBLIC GETS TO COMMENT YOUR WORK ON THAT AND THEN WE CAN AMEND THE MOTION IF WE NEED TO BUT WHILE I MOVE TO RECOMMEND TO TOWN COUNCIL TO ADOPT AN ORDINANCE TO AMEND THE TOWN IN HILTON HEAD ISLAND COMPREHENSIVE PLAN TO INCORPORATE A HOUSING IMPACT ANALYSIS GIVE US A SECOND CHANCE SO THE SECOND IMPACT ANALYSIS THEN DID I HEAR YOU? YES. SECOND AGAIN OKAY MY SECOND SECOND TIME FOR PUBLIC ON THE MOTION AND NONE NO VOTE ON THE MOTION AT THOSE AT THIS I WAS GOING TO WAIT TO MAKE MY COMMENTS UNTIL AFTER THE PUBLIC COMMENT SO IF THERE ARE NO PUBLIC COMMENTS IS TIME FOR THE COUNCIL TO MAKE SO IT WAS A WELL DONE REPORT AND I DO AGREE WITH YOU DAVID THERE ARE SOME ASSUMPTIONS IN THERE THAT I DON'T NECESSARILY AGREE WITH SOME THAT ARE VERY VARIABLE AND CHANGING AND SO TO RELY THEM AS A FORECAST EVEN TODAY VERSUS WHEN THIS WAS WRITTEN IS SOMEWHAT PROBLEMATIC. BUT TO TAKE NOTHING AWAY FROM IT WAS A WELL-WRITTEN REPORT FUNDAMENTAL. I DON'T BELIEVE THAT GOVERNMENT INTERVENTION IN HOUSING IS IS WHERE WE SHOULD BE. THIS IS NOT GOVERNMENT'S ROLE AND WITHIN THAT FRAMEWORK THE FURTHERANCE OF GROWING GOVERNMENT AND HILTON HAD TO FULLY DEVELOP A DEPARTMENT OF HOUSING WHICH SOME MAY SAY WE HAVEN'T DONE AND I WOULD ARGUE WITH THEM THAT WE INDEED ARE DOING JUST THAT IS NOT SOMETHING THAT I CAN SUPPORT. I DO THINK THAT MARKET CONDITIONS ARE IMPORTANT AND SOME THAT OFTEN TAKES CARE OF MANY OF THE WE ALSO HAVE OTHER WAYS THAT SOME OF THE ISSUES CAN BE ADDRESSED THAT ARE ADDRESSED HAVE NOT BEEN ADDRESSED AT ALL. WE TALK A LOT ABOUT SHORT TERM RENTALS AND WE ALL ACKNOWLEDGE THAT SHORT TERM RENTALS IS TAKEN OFF OF THE LONG TERM HOUSING OPPORTUNITIES FOR OUR THAT'S PROBLEMATIC AND YET WE'VE DONE NOTHING ABOUT BUT WE CAN WE CAN HAVE THAT DISCUSSION AND INSTEAD WE'RE RELYING ON THINGS THAT I THINK MANY DON'T AGREE IS THE RIGHT DIRECTION TO GO ON. WE CAN AS I HAVE DISCUSSED FOR YEARS IS TALK ABOUT PLANNING FOR RESEARCHING AT LEAST INVESTIGATING A TRANSPORTATION SYSTEM FROM OFF ISLAND WHICH ALLOWS OUR EMPLOYEES TO LIVE WHERE THEY WANT AND WHAT THEY WANT AND RAISE THEIR CHILDREN IN THE ENVIRONMENT THAT THEY WANT TO. BUT WE DON'T TALK ABOUT THAT.

WE TALK ABOUT EVER EXPANDING BRIDGE. WE TALK ABOUT CONGESTION.

WE TALK ABOUT EVERYTHING ELSE THAT AND SO IN MY MIND THERE ARE OTHER OPPORTUNITIES THAT SHOULD BE PART OF A SOLUTION BECAUSE I FUNDAMENTALLY DISAGREE WITH THIS APPROACH AND I FUNDAMENTALLY DISAGREE WITH 57 I WILL BE VOTING NO. I DO HAVE AN INCOME NOTHING ELSE. ME THANK YOU SIR. STAFFORD ANYTHING ELSE? NO, NO NOTHING FURTHER. THANK YOU. I HAVE JUST ONE QUESTION, MISSY. IT'S JUST MORE FOR PUBLIC INFORMATION.

HOW OFTEN WOULD THIS HOUSING IMPACT STUDY BE THE UPDATED WELL YES THIS IS A POINT IN TIME ANALYSIS AND IT WILL BE PART OF OUR COMPREHENSIVE PLAN AND THEN UPDATED ON THAT INTERVAL. HOWEVER WITHIN OUR HOUSING PROGRAM WE'VE THAT WE NEED TO

[00:35:01]

THANK YOU. ALTHOUGH IT'S NOT EXACTLY GERMANE TO OUR DECISION THIS MORNING THE SPEAKER MADE SOME STATEMENTS ABOUT THE SUPPORT OF THE PUBLIC TO INVEST IN HOUSING. I'M GOING TO MAKE A COUPLE OF COMMENTS ABOUT THAT.

THE TRANSPORTS AND ISSUE OF MOVING 15,000 EMPLOYEES TO THE ISLAND ON BUSSES THAT 50 PEOPLE MEANS THAT WE WOULD HAVE 300 BUSSES COMING TO THE ISLAND EVERY DAY TODAY LITTLE PALMETTO BREEZE, ABOUT 500 EMPLOYEES AND IT'S IMPRACTICAL AT THIS POINT IN TIME TO THINK THAT WE CAN MOVE THAT MANY PEOPLE ONTO THE ISLAND AND DISTRIBUTE THEM TO WHERE THEY NEED TO BE EMPLOYED.

I JUST THINK THAT IS A STRETCH BUT MORE RELEVANT TO WHAT I A HOUSING THAT THIS COMMUNITY NEEDS TO BUILD COMMUNITY IS YOUNGER PEOPLE COMING TO THE ISLAND GROWING WITH THE ISLAND PROVIDING THE SUPPORT THE ISLAND NEEDS BUT ALSO BECOMING A PART OF THE ISLAND.

WHERE DO YOU THINK OUR LEADERS WILL FROM IF WE AREN'T PROVIDING HOUSING THAT YOUNG YOUNGER PEOPLE CAN LIVE IN? SO I THINK IT IT IS AN EMPLOYMENT ISSUE OBVIOUSLY BUT FOR ME IT'S HOW DO YOU BUILD A STRONG COMMUNITY WITHOUT HAVING YOUNG PEOPLE IN IT TO GROW IN THAT COMMUNITY AND TAKE OVER LEADERSHIP OVER TIME? THANK YOU VERY MUCH.

I KNOW LET'S NOT LET'S NOT BUT I THINK THAT'S A GREAT DISCUSSION AND I THINK THAT'S KNOW THAT YOU HAVE BUT YOU BROUGHT IT UP AND SHE BROUGHT UP.

I JUST I'D LIKE TO ANSWER THAT . WITH REGARD TO THE TRANSPORTATION THERE ARE SHIFTS. IT'S NOT TO PAINT A MISLEADING PICTURE OF 14,600 PEOPLE TRYING TO ENTER THE ISLAND AT ONE TIME.

YOU KNOW, AS I DO THAT'S BIG NUMBER. BUT THERE ARE VARIOUS SHIFTS OVER VARIOUS DAYS SO IT'S NOT THAT FULL IMPACT ON A DAILY BASIS.

SO PUTTING THAT ASIDE, THE IDEA OF WHERE DO OUR FUTURE COME FROM? I AGREE 100% WITH YOU CHAIR THAT DO NEED TO PLAN FOR THE FUTURE AND PROVIDE OPPORTUNITY . WE DO WANT A YOUNGER POPULATION TO COME IN TO LIVE IN OUR COMMUNITY AND TO GROW BUT WITHIN A FRAMEWORK OF PROVIDING RENT CONTROLLED SUBSIDY TAXPAYER SUBSIDIZED HOUSING. WHAT IS THE NEXT STEP WHEN THEY DO GROW? WHAT IS THE NEXT STEP? AND FOR PEOPLE FOR HEARTBEATS AND I AND THE CONDO IS NO LONGER SUFFICIENT AND THEY WANT TO MOVE TO THE NEXT STEP. WHERE IS THAT OPPORTUNITY COME FROM BECAUSE THEY'RE GOING TO GO FROM THAT RENT CONTROL SUBSIDIZED HOUSING TO A MARKETPLACE OF 700 WHATEVER NUMBER SEVEN DOE 722,000 WHATEVER THE NUMBER WAS AS A MEDIAN INCOME. SO THERE'S A CAP SO WE LOSE THEM ANYWAY.

I AGREE YOU WITH REGARD TO THAT BUT THIS HASN'T STARTED IT. THANK YOU.

IF YOU CALL THE QUESTION AT THIS TIME ALL THOSE IN FAVOR OF THE MOTION RAISE YOUR RIGHT HAND AND IS YOUR RIGHT HAND UP? IT IS, YES. THANK YOU.

WE COULDN'T SEE IT AS IS THREE ARMY OF DAVID. IF THERE'S NO OTHER BUSINESS WE STAND IT. WE NEED TO MOVE. WE NEED TO BEG YOUR PARDON?

[Executive Session]

ADD AN EXECUTIVE SESSION FOR THE RECEIPT OF LEGAL ADVICE PROTECTED BY THE ATTORNEY CLIENT PRIVILEGE. IS THERE A MOTION TO GO INTO EXECUTIVE SESSION PURSUANT TO THE LANGUAGE YOU JUST READ OUT? THANK YOU. THERE A SECOND PAPER IN YOUR RIGHT HAND? THANK YOU. APOLOGIZE FOR THE MISSTEP THAT YOU COME BACK AND I'LL REPORT THAT NO ACTION WAS TAKEN IN THE EXECUTIVE SESSION. WE CAN STAND ADJOURNED AT THIS POINT

* This transcript was compiled from uncorrected Closed Captioning.