A - Town Council Meetings

TOWN OF MOUNT PLEASANT SPECIAL TOWN COUNCIL MEETING Monday, December 2, 2024 11:00 a.m. Municipal Complex, Council Chambers 100 Ann Edwards Lane, Mount Pleasant, SC 29464 MINUTES PowerPoint Presentation 1. Call to Order Mayor Haynie called the meeting to order 11:09 a.m. Daniel Brownstein, Howard Chapman, Laura Hyatt, Guang Ming Whitley, Jake Rambo, Gary Santos, and Carl Ritchie were all present. John Iacofano was absent. 2. Public Comments Jimmy Bagwell, 41 Vincent Drive, and member of the board for the National Medal of Honor Center for Leadership, thanked the Town for what they have done for them over the last 5 years. He said he is here to speak in favor of the fee program, as it will do wonderful things for the Town, Patriots Point and the National Medal of Honor Center for Leadership. He said they have been working very hard for the last five years to put this program together. He said they are in the best financial shape they have been in for quite a while and this program will do a great deal to enable them to build the Center for Leadership at Patriots Point. He said it will also do a lot for the town, and tourism, for the College of Charleston facilities, and will improve the parking. Mr. Bagwell said he believes the Center for Leadership will be a fantastic draw for this area, adding leadership is drastically needed in this country today, and they will expand this program all over the country. He stated this program will allow them to build the building they have already designed. He said the fee will also allow them to have parking for the facility. He said this will be a fantastic facility and he is very excited about it. Tommy Baker, thanked Council for the opportunity to speak. He acknowledged it was cyber-Monday, and $13.2 Billion will be spent in America today, and between Friday until today, probably over a Billion dollars will be spent in America. He said today is the most prolific day in Mount Pleasant with this program. Mr. Baker said he has been associated with the Medal of Honor for five years, and one of the reasons he is here is because of Medal of Honor recipient General Livingston, a two star General. He said this is our big day, and we are so proud of Council and the decisions they make, and what is done today will write the history of Mount Pleasant. Andrew Hsu, President, College of Charleston and a proud resident of Mount Pleasant. He said on behalf of the College of Charleston he wants to express their support for the Tourism Development Fee and the Patriots Point development project. He stated College of Charleston athletics has a decades long history in Mount Pleasant, dating back to the early 1990’s when the soccer and baseball teams played at Remley’s Point. He said we have come a long way from that space, and in early 2000, the College of Charleston expanded their footprint at Patriots Point, and it now boasts a tennis center, soccer field, baseball field and softball stadium at the athletics complex. He said Patriots Point is a wonderful home for their student athletes and fans. He is proud to report that the College of Charleston has invested millions of dollars in the past few years, in upgrading the facilities there, and there are plans to do more. He said in higher education a strong athletics program contributes to the university’s ability to attract talented students, faculty and staff, while at the same time enhancing the overall quality of education and campus life. He said he is proud to be here to express the College’s support. Chaelyn Noone, 1645 Farmer’s Way discussed garage enclosure issues at Liberty Hill farms. They have incurred expenses due to mold on their items and they would like the Town to reconsider the flood ordinance. Helen Hill with Explore Charleston, thanked Council for the wonderful Visitor’s Center, and said it is a blessing to have that beautiful space to serve visitors every day. Ms. Hill said she wanted to thank Council for the opportunity for something very special in Mount Pleasant, the greater Charleston area and indeed South Carolina. She stated there are many aspects of this plan to love, but she wants to discuss the Medal of Honor Leadership Institute and Conference Center. She said this is a great opportunity to bring meetings and conventions to Page 2 of 20 Mount Pleasant, and to use the Medal of Honor to inspire those attendees. She said what better role models could we have for corporations and associations than the Medal of Honor recipients. She said in a very competitive world of meetings and conventions, she believes this will give us a competitive edge, and we all know that tourism is the first step in economic development because no one has ever brought their knowledge-based economy until they have come as a visitor first. She said all that will be obtained with a tax break to the citizens of Mount Pleasant and opening more of the waterfront to the people. She thanked Council for their consideration. Wayne Adams, Chair of the Patriots Point Development Authority, stated on behalf of the board he is here to support the project before Council. He said they think this is a tremendous opportunity. He said a number of years ago, they launched an effort to make Patriots Point a destination, which led to Patriots Annex, now in its early stages, and will be a mixed-use project. Mr. Adams said they are a world class Naval Museum which they are very proud of, and that will continue. He said they are home for the College of Charleston athletic activities, the Charleston Battery, home for several of the Town’s soccer fields. Mr. Adams said they have a beautiful golf course, a wonderful marina, hotels and much more to come, including the Center for Leadership. He said they think this project only enhances what they are doing there, and they think it will be the culmination of making Patriots Point a destination. He said by working together with the various stakeholders, we can accomplish so much more such as improving transportation, planning, public safety and improving the attraction. He asked the Town for approval, and said they look forward to working together. Bob Lawrence, 2217 Cultura Circle, stated they have done significant research into the Town website and the FEMA and CRS websites. He said leadership has been nonexistent, and communication has been poor. He said leadership has fallen short and reminded Council they are elected by residents. JR Rosenberg, 2263 Cultura Circle stated he moved here from Atlanta and purchased a townhome in Liberty Hill Farm. He stated there had never been a conversation about the garage mandate, or a non-enclosure agreement. No documents had been filed with the city, and he knew nothing about it. He asked Council to please find a resolution so they may continue to enjoy living in Mount Pleasant. Page 3 of 20 Rob Salvatore stated he is the controlling owner of the Charleston Battery, club chairman and managing partner. He said he is in support of the initiatives being considered by Council as the project will bring a lot of people to Patriots Point on a consistent basis. He said five years ago they bought the team, and the reason they were able to close the transaction is they had the ability to go to Patriots Point. He said it was a blank canvas, and they put millions of dollars of their own capital into it, and they could not have been more thrilled. He said they feel they have built a great community asset. Mr. Salvatore stated this project is transformational and they are happy to be in the middle of it, but he thinks it addresses two things they see with any professional sports team. He said one, it is very crowded, and he has expressed concern with the traffic getting in and out. He said when they have games he has police, private security, and his own staff. He said he is worried on Sunday mornings when the recreational teams are playing, and people are down there enjoying Patriots Point for what it is. He said the infrastructure work is foundational, and there will be more and more people visiting. He said the other piece is the recreation fields component as those fields are not up to the standard of the Town, and he hears from a lot of engaged parents, whether they are playing recreational or club, they talk about going to other communities regionally with much better facilities. He said we need to make the investment to better them as that piece is foundational, and that is a reflection on who the Town is. Mr. Salvatore said those fields can be used in a much more optimized and dynamic way, and if they are turfed they can host different activities. Mr. Salvatore said the kids can be inspired by the professionals playing next to them, and he hopes this project moves forward. Billa Sperry, 2248 Cultura Circle, in Liberty Hill Farm, stated she has concerns with garage enclosures. Ms. Sperry said when she and her husband purchased their townhome, they were told there would not be an issue with enclosing the garage. She said before moved to Liberty Hill Farm they resided in Rivertown and had enclosed their garage with no issues. She is concerned with critters and humidity destroying items in their townhome. She asked Council to consider extending the deadline until an agreement has been made. Laura Langevin, 2229 Cultura Circle, Liberty Hill Farm stated she had a contractor enclose their garage. She stated they contacted Page 4 of 20  their insurance company and were told they could proceed. Ms. Langevin said she was told she was non-compliant and there was a non-conversion agreement, however when she researched it, there is not one recorded for her lot. She stated she is having a difficult time understanding the regulatory standards. Robert Boyles, Director of the South Carolina Department of National Resources stated he is speaking on behalf of the agency, and he wanted to remind Council that they have some obligations they expect to enforce. He stated any definition of leadership includes the words Honor, Commitment and Integrity. He said DNR became aware of the draft amendments when they were posted on the Town’s website related to a special Planning Commission meeting. He said after careful review it appears the Patriots Point Development Authority intends to build a conference center, a Medal of Honor Museum, a fine arts gallery and a parking garage on property that is covered by an easement that is held by the SCDNR, which extends until January 20, 2048. He said the conservation easement does allow for activities involving education and public recreation, and the DNR does not believe that the erection of these facilities are minimal improvements and believes the construction would significantly impair or interfere with the conservation values of the easement property. He said the department’s interest is to ensure that we remain committed to the promise we made in accepting that conservation easement last year, that we honor the intention of that commitment and that we remain committed to improving the lives of Mount Pleasant residents and celebrating the tenants of leadership. Lisa Schnipke, 185 Mossy Oak Way, stated she is a fourth- generation veteran, and she and her husband were stationed at weapons station in Goose Creek in the 1980’s. She said when she has family here, they would often visit Patriots Point and having it in Mount Pleasant is a real gift. Ms. Schnipke said she understands the Patriots Point development would bring in much revenue for the Town, and several years ago when it was brought to Council it included an amphitheater and a good bit of green space. She said she hopes that is still there, and asked Council to make sure this development adds to what we currently have at Patriots Point and does not start to detract from that wonderful opportunity. 3. Review of proposed project at Patriots Point Page 5 of 20 Video & Presentation. Mr. DeMoura and Ms. Farrell gave the following presentation. Page 6 of 20 Page 7 of 20 Page 8 of 20 Page 9 of 20 Page 10 of 20 Page 11 of 20 Page 12 of 20 Mayor Haynie said this would be a good place to reference state law about time requirements for implementation after notice is sent. Mr. DeMoura said that once notice has been provided to the state that the fee has been passed, it will be sixty days before the fee can be imposed. Mr. Chapman asked staff to show specifically where the waterfront access change would occur. Mr. DeMoura described where the promenade would go as well as a brand-new passive waterfront park with waterfront access on that property near the conference center or closer to the Yorktown property near Patriots Annex. Mr. Chapman asked if the waterfront access would be the largest single waterfront access, in all of Charleston County. Mr. DeMoura said he could not say for sure, but if it is not, it is close. He said it is the largest access to the waterfront that we have in Mount Pleasant. Mr. Chapman stated it would rival the waterfront park in downtown Charleston and Mr. DeMoura concurred. Mayor Haynie stated that as Mayor he sits on both the Center for Leadership and Patriots Point boards would like to discuss parking. He said under this plan, if Council passes it, the Town will own the parking garage for our citizens, and instead of there being a hodgepodge of surface parking for things that are not town events or Page 13 of 20 properties, there is one footprint and a thousand cars in one place. He said our citizens are already paying for that through the fee, so when there is a recreational activity, this will cover that, and the Center for Leadership as well, and this is an opportunity for the citizens to own that garage, which is a lifelong income-producing asset. Mr. Brownstein said the development within Patriots Point is anticipated to generate $33.5M in property tax over twenty years, $17M in Accommodations Tax, $6.5M in Hospitality Tax, and when this is fully built out, are we anticipating an average tax revenue generation in the neighborhood of $3M a year, and Mr. DeMoura responded in the affirmative. Mr. Brownstein said it does generate a significant amount of impact fees at $8M, $850K in development fees, and nearly $30M for capital improvement projects in the area, with a total of $38.75M. He asked if there are additional economic benefits beyond those numbers. Mr. DeMoura said Mr. Brownstein covered them very well and said we plan, as part of our negotiation with stakeholders as far as use of the money, to make sure that a payment in lieu of taxes is included. He said the land is owned by the State of South Carolina so the land would not be taxable, and that would be the one major item he would add to Mr. Brownstein’s list. Mr. Brownstein asked if there is any idea of what sort of revenue a parking garage of that size would generate. Mr. DeMoura said he does not have that information today as the focus has been on the cost estimates for the project, but we will study that in detail to get that number. Mr. Brownstein said right now there seems to be a contingency estimate of about $48M as the cost is uncertain, and he would like to push for keeping these numbers at their budget and not spend some of the contingency, to possibly look at additional property tax relief to our residents. Mr. Brownstein said with the Tourism Development Fee, we will be crediting twenty percent to the residents and asked if that would essentially make them whole, so that they would break even with what they are paying into the fee. Mr. DeMoura stated he believed it would, adding the state requires a four percent reimbursement to taxpayers, and the Town will go beyond that as we are trying to arrive at a number we felt was reasonable for what the additional sales tax impact would be on our homes. He said we cannot know that number perfectly as it is determined by consumption habits in every household. He stated we feel confident Page 14 of 20 we are giving back an amount that he thought most people would say is reasonable for the additional burden they have to endure because of this fee. Mr. DeMoura stated the state required refund would amount to $800K a year, but we are in the $2M range, so we are exceeding what is required by the state to make the residents whole. Mr. Brownstein said he thinks there are clearly many benefits to what is being proposed, not only from an economic standpoint and diversifying our base, but one of the comments he said he hears from around town is that they want more entertainment options, and this certainly delivers on that with the improvements to the recreation facilities, opening up additional waterfront park space, and the Medal of Honor Leadership Center. He said there are a lot of positives, but one thing that concerns him is that for the Town to break even on the services it is providing to its residents, which is in the neighborhood of a $1.2M tax assessed house, so it is important for us to broaden and diversify our tax base as it puts us in a position that later on we will not have to raise taxes to maintain the current levels of service. Mr. Brownstein said this will bring a lot of economic activity to the Town, and hopefully we can do some great things with the increased revenue. He said many people are concerned with the pay for first responders and making it affordable for town employees to live in the town they serve, and in his mind this is a mechanism that would allow us to do that in the future. Ms. Whitley asked about the oversite the Town would have with respect to the funds to build the parking garage, the Medal of Honor Center and all of these other renovations. Mr. DeMoura said that would be done through an agreement. He said we understand this is our residents’ money going into this project and so oversite is key, and the mechanism we feel is best able to oversee the expenditure is through agreements with the stakeholders, in which the details and expectations would be laid out. Ms. Whitley asked if, for example, for the parking garage, the Town would lease that land from the Patriots Point Development Authority, and we would build and own the structure. Mr. DeMoura responded in the affirmative. Ms. Whitley asked if there would be an agreement with the College of Charleston and the Battery, where we would give them money to do the renovations. Mr. DeMoura said that would be done through a different mechanism, mostly a naming right opportunity, but essentially it is the same thing. Ms. Whitley asked if, Page 15 of 20 for the Medal of Honor Center for Leadership facility, a check would be cut to the Medal of Honor nonprofit. Mr. DeMoura said by law the money that is collected is given to a regional marketing agency, which is Explore Charleston, and they would ultimately be providing them that money. Ms. Whitley said our oversite would be through agreements and contracts with Explore Charleston, and Mr. DeMoura responded in the affirmative, that they would be governing the distribution of that money. Ms. Whitley asked if the same was true for the boardwalks, roads and paving. Mr. DeMoura said we plan to do that, so our public improvements, in addition to the parking garage are the boardwalks, the park, and the circulation system for the roadways. Ms. Whitley said we had public comment earlier from someone speaking on behalf of the Department of Natural Resources about a conservation easement, and this is the first she has heard of it. Mayor Haynie said the property is owned by Patriots Point Development Authority, and he has expressed the same concerns to them and at the Center for Leadership. He said we do not control that but there are options, and board members of both organizations are in that conversation, and they, along with the Town, think there are options for putting more property under conservation that will have more acreage and higher conservation values. Mayor Haynie said this is only the beginning, and all of that cannot be worked out until we pass this. He said we just transferred one from there to the waterfront, which is a better conservation value and more visible to the public, where before it was behind a road. He said the precedent is there if DNR agrees that what can be offered is better, and if they do not, then we regroup. Ms. Whitley said then if we vote in favor of this, go through first and second reading, it is still possible that DNR could come back and say no to the project. Mayor Haynie said they could say no to building on what is under easement. Ms. Whitley asked if the entire 74 acres is under easement, and Mayor Haynie responded in the negative. Mayor Haynie said Explore Charleston wants to market the entire project and brand it around having a Center for Leadership there, which fits the business model for the Center for Leadership as it is not a museum. Page 16 of 20 Ms. Whitley said she was able to speak to someone on the Center for Leadership Board, and having been to many board retreats, it is incredibly important to have something like this as there is not anything like it on this coast. She said it would be a huge boon to our community and a huge draw for corporate retreats to build off of the leadership training. She said it is a very interesting and complex project. Ms. Hyatt asked about the conservation and Mayor Haynie said there is one in question needs to be worked out which is where the parking garage and conference center are scheduled to be placed. He said there is another conservation easement out there. Ms. Hyatt asked if the center is remaining on the waterfront and not getting moved and Mayor Haynie said by agreement with Patriots Point, that is where it will be. Ms. Hyatt asked if there is a consideration to locate it near the conference center and Mayor Haynie said that is for those boards to decide, but we needed to make sure whatever planning we did enabled those opportunities. Ms. Hyatt asked for confirmation that the board does have an interest in a conservation easement, but we may rearrange where that space is located. Mayor Haynie said there is a precedent for that, but DNR can decline if they chose. Mr. Rambo confirmed that the Town would be owning and operating the parking garage, and asked if we would own and operate the convention center. Mr. DeMoura responded in the negative. Mr. Rambo asked if Explore Charleston would be the owners and operators of that and Mr. DeMoura responded in the affirmative. Mr. Rambo asked if the Patriots Annex Development will be able to count some of that parking in their requirements and Mr. DeMoura responded in the negative. Mr. Rambo said then they will still have to meet their parking requirements and Mr. DeMoura responded in the affirmative. Mr. Rambo said there are many elements of this project that he likes, and he is very excited that it would result in resurfacing and putting artificial turf on those soccer fields which are in bad condition, and the partnership with all of these local entities. Mr. Brownstein asked if there would be a future availability to pick up the boardwalk where it terminates near Hog Island and extending it around to connect to our existing Shem Creek Park. Mr. DeMoura Page 17 of 20  said that has been discussed in the past as Mr. Santos brought that idea up, however there are several logistical challenges to doing that. He said if they were able to be overcome, there would not be enough money to cover such an extension. He said we plan to continue to look at it, but as of today, as to this proposal, it is not included. Mr. Brownstein asked that it be kept as a potential goal in the future. Mayor Haynie said he wanted to point the Council Members to the letter in their notebook from the Medal of Honor Center for Leadership which states that part of the second floor would be an art gallery with a patriotic theme for the Town, so this would be our first big foray into something officially in the arts through a partnership with the Center for Leadership. He said our aspiration is to get the nationally famous Mary Whyte collection in there, but that has not been worked out at this time. He said that would draw people to the Center for Leadership. Mayor Haynie asked in the economic study that was done, what percentage of the retail sales tax paid in Mount Pleasant is paid by non-residents. Mr. DeMoura said it is almost two thirds. Mayor Haynie said by doing this fee and giving our citizens a rebate on their property taxes, we are harnessing the tourism dollars and delivering these things for our citizens. He said he was not around when the legislature passed the Tourism Development Fee Act, but he thinks it was designed for this type of scenario where the citizens benefit because the tourists are actually paying for it. There being no further discussion, Mayor Haynie moved to the next item on the agenda. 4. First Reading: An Ordinance to enact Chapter 40.22 of the Mount Pleasant Code of Ordinances to impose a local option tourism development fee Mr. Santos moved for first reading to enact Chapter 40.22 of the Mount Pleasant Code of Ordinances to impose a local option tourism development fee as discussed by Council, seconded by Mr. Chapman. Mayor Haynie asked Mr. Pagliarini if the Latin term mutatis mutandis refers to change, and Mr. Pagliarini responded in the affirmative. Mayor Haynie said that means that further identification of this point- of-sale jurisdiction mutatis mutandis, those can change. Mr. Pagliarini responded in the affirmative. Page 18 of 20  Mr. Rambo said the fee would be imposed sixty days after it is finalized, but the project and conservation easements are not worked out. He asked what the approximate timeline would be the residents and businesses would start seeing this fee. Mr. DeMoura said when final reading occurs, that does not mean it will be imposed immediately. He said there is time given to the local government to work out more details, and time for businesses to configure such an imposition of a fee. He said based on our estimates, it could take six to eight months to be in a position to start charging this fee, so it would be around summertime that would be the earliest he imagines the fee would likely be imposed if everything went according to plan. Mr. Rambo said we would have first and final reading of imposing the fee, and asked if Council would have a further vote months from now to decide the start date. Mr. DeMoura said after second reading, the imposition of the fee is allowed by Council, so as we get closer to working out some of the details in the agreements, we would be in a better position sometime in the summer. He said it would not take an additional Council vote, but the progress would be communicated with Council every two weeks, so Council would know well in advance how things are moving, and whether we would be able to impose the fee in the summertime. Mayor Haynie said by state law, it takes a two-thirds majority of Council, and we are short a Council Member, which means we would need six votes in the affirmative to pass first reading. He said it is anticipated that second reading would be in early January. Mayor Haynie called for the vote and all present voted in favor. The measure passes with a vote of 8-0. 5. First Reading: An Ordinance providing for an Amendment to the Patriots Point Planned Development District Mayor Haynie stated for clarification that this is not the Annex where the development has already been approved. Mr. Pagliarini stated that is correct, and there will be a public hearing at the Planning Commission meeting tomorrow evening. Mr. Chapman moved for first reading, seconded by Mr. Santos. All present voted in favor. The motion carried 8-0. 6. Adjourn Page 19 of 20 There being no further business, the meeting was adjourned at 12:25 p.m. Respectfully submitted, Christine Barrett Clerk of Council December 2, 2024 Page 20 of 20