DUNES HOUSE UPDATE
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As promised, enclosed is an update on the reimagined Dunes House. This project gives us a great opportunity to finally have an owner's beachfront amenity, which has been a stated desire for many of you. We trust this update will provide you with comprehensive next steps for the proposed Dunes House project. A similar update was sent last year. Since that time, your board has continued to work hard to ensure input is incorporated, concerns are addressed, and to help move forward in building this gathering place to enjoy for many years to come! This information provides you with updates, new details about the project, and a timeline so you are fully informed. What's next for the proposed Dunes House?
We will be sending out a brief survey online for you to complete about the project. This is a major endeavor for the Association, and it is very important we get as many owners as possible to provide feedback by COMPLETING THE SURVEY in a timely manner. Please, take the time to read the details included here and let us know your interest in the project via the survey. Thank you for taking this request seriously - we want every owner’s voice to be heard. The results will help our board determine how this project moves forward. We are excited to have this opportunity to enhance our true piece of paradise here in Palmetto Dunes. Thank you for providing your feedback on this project. All the best,
Jerry Bowling
Jerry Bowling Chair, Palmetto Dunes POA
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NOVEMBER 2019 2018
Amenities survey conducted with Palmetto Dunes Owners. From those who responded, a beachfront clubhouse was the most desired amenity.
2019
Member Comment Period on whether owners wanted a Beachfront Amenity or 7 Lee Shore Redevelopment. Owners, who responded, overwhelmingly wanted to move forward with a beachfront amenity.
Palmetto Dunes Property Owners Association creates ad hoc committee to determine possible sites for future clubhouse. All options to deliver a beachfront clubhouse were explored, including buying property to develop. It was determined to not be financially feasible, so partnerships with existing venues became the only viable alternative. Committee agrees the current Dunes House location is the best option for a future clubhouse amenity since it is an accessible beachfront area and an already popular gathering spot for Palmetto Dunes owners and residents.
MAY 2021
Beachfront Clubhouse Amenity mailer sent to all owners and owner feedback provided to Board.
2020- 2021
Palmetto Dunes POA staff, board and Greenwood work in concert to determine best design for a future Dunes House/clubhouse. All agree Dunes House would be expanded with an updated commercial restaurant facility on the ground floor managed by Greenwood, with a second story and rooftop area built for Palmetto Dunes property owners use.
DUNES HOUSE
TIMELINE
JULY 2022 Palmetto Dunes Property Owners survey completed for board review.
JUNE 2022 Palmetto Dunes Property Owners Association updates members on the project and provides a survey for owner feedback.
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SUMMER 2022 Board reviews owners feedback and is presented with a draft lease for their consideration.
EARLY 2023
If approved, details finalized for Dunes House/Palmetto Dunes owners clubhouse capital project and ready for public review.
FALL 2022 If the Board endorses the lease and supports moving forward, Greenwood would submit the zoning application to the Town of Hilton Head Island.
SUMMER 2024 If approved, project completed.
SEPTEMBER 2023
If approved, construction begins on the new Dunes House.
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DUNES HOUSE UPDATE
WE LISTENED The Dunes House… a property owner’s place to gather! Whether you're looking to enjoy sunset cocktails with neighbors, a rooftop dinner with family and friends, your monthly book or bridge club, a weekly trivia night, the annual fall oyster roast, or even a community wine tasting…the possibilities for an expanded Dunes House are unlimited! While maintaining the same beach vibe we enjoy today, the new and improved first-floor venue will provide a larger, more expanded beachfront gathering space open to resort guests and owners. The Dunes House second-floor will be a climate-controlled area for property owners only, giving you a comfortable place to enjoy with family and friends. Amazing views of the beach can be seen from the owner’s only rooftop deck on the third floor, where you can have drinks and food while enjoying the beachside atmosphere. Many property owners have expressed a desire for these experiences and now we have the chance to make this a reality… The Dunes House Beachfront Clubhouse would be the only property owners’ club on Hilton Head Island with a second-story view, rooftop deck and ongoing food and beverage service. Regardless if you’re simply looking to savor the sunset, or find a comfortable spot to enjoy dinner with a view, the reimagined Dunes House will be the place for future memories to be made with family and friends, beachside.
Based on input from our Palmetto Dunes owners, we have made significant project updates over the past year: Rental Agreement: To keep expenses down for our owners, Greenwood has the option to rent the owners-only second floor and rooftop deck. However, there will be restrictions in place to ensure Palmetto Dunes owners maintain majority access to our beachfront amenities. Greenwood will be able to rent the space for a maximum of 40 days per year. From these potential 40 days, they will be limited to 30 Saturdays. *As it is today, the Dunes House is closed to private events 30-40 days per year. Maintenance of the building will be to the same condition existing at time of completion.
PAGE | 06 Rental Restrictions: Greenwood will not be able to rent for more than 4 days per month No consecutive rental days or more than 1 day per weekend No renting on certainly holiday weekends (Memorial Day, July 3-5, Labor Day) The owners-only parking lot will not be available for rent for these leaseback options Rental Revenue: Greenwood’s ability to rent the Clubhouse could provide substantial income to offset expenses. With a projected rental income of $120,000 per year, the Property Owners Association’s annual lease expense of $170,000 would be significantly offset. Atmosphere: While the reimagined Dunes House will feature an upgraded commercial kitchen with an expanded menu, Greenwood is fully committed to keeping the same relaxed, beachside feel we enjoy at the Dunes House today. Protecting the Environment: To ensure the preservation of our beautiful beach and shoreline, it is our goal to create a property that is more environmentally friendly than it is today. Since the original plans were released, the following changes have been made: Building height lowered 3.6 feet Second-floor deck significantly reduced Building has been moved back 6 ft from its current location Updated renderings and elevations can be found on our website Beach Access: During the construction, beach access will remain open. Upon completion of the project, the existing beach access will be replaced with an updated structure. Privacy: For Moorings and Beach Villa owners, we will be providing new controlled access gates into their parking lot, along with improved landscaping to create a privacy buffer between the new Beachfront Clubhouse and neighboring properties. These access gates will provide a solution to the parking issues that these owners have been experiencing for years.
DUNES HOUSE UPDATE
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Why would I want a Beachfront Clubhouse if I don’t believe I would use it? Given Palmetto Dunes is an oceanfront residential resort community, the opportunity to enjoy the beach from the comfort of an owners-only clubhouse is consistent with the reason most owners purchase here. Having a comfortable place to meet and gather will enhance the sense of community we already cherish at Palmetto Dunes. Beyond the social aspects, a Beachfront Clubhouse will increase the desirability of Palmetto Dunes, enhancing property values. How will the Greenwood partnership for this amenity work? Greenwood will continue ownership of the property, as they are not open to selling or giving up land ownership. Greenwood will pay all construction costs for the building. As they do currently, Greenwood will continue to operate the Dunes House's first floor as a commercial dining facility. In an effort to offset costs, Greenwood can and has the desire to rent the POA space for events. They could rent up to 4 days per month and a max of 40 days per year including 30 Saturdays. *As it is today, the Dunes House is closed to private events 30-40 days per year. They will not be able to rent the facility for consecutive days or more than 1 day per weekend. During the holiday weekends (Friday-Monday) of Memorial Day, Labor Day, and July 3-5, Greenwood will be restricted from renting the facility.
DUNES HOUSE UPDATE
Both parties agree to maintain the facility in a first-class manner. Maintenance of the building will be to the same condition existing at time of completion. What about the environmental impact of the new building? In an effort to protect the dunes, the building has been moved back 6 feet from where it sits today, away from the active dune system. Building height lowered 3.6 feet from the original plans. Second-floor deck size significantly reduced. The Association and Greenwood will be required to comply with the Town of Hilton Head’s ordinances, specifically the ‘lights out for turtles.' The Association is currently involved with and in support of the Sea Turtle Patrol and Turtle Trackers, and will not deviate from our mission “to protect the natural environment.” The new parking lot will have a 32% decrease in the impervious surface from the existing site, which significantly improves stormwater management. The property will be bike-friendly with ample bike parking and an electric car charging station.
What about parking? ·As it is today, the Dunes House parking lot will remain only accessible to property owners and resort guests. The general public does not and will not have access past the North Gate to park on Dunes House Lane. Dunes House Lane will be redesigned and repaved to improve traffic flow, improve safety, properly manage stormwater, and increase the pervious to impervious ratio. This will be completed whether or not the Dunes House project moves forward. The two tennis courts closest to the North Gate will be converted for bar-controlled, dedicated owner-only parking consisting of approximately 40 spaces. Property owners will obtain a barcode in the Pass Office for this owner-only lot, just like obtaining a property owner decal. The owner-only parking lot will not be leased out for private events at the Dunes House, allowing regular access only to owners.
What about food and beverage at the Dunes House? Same beach vibe with an expanded menu Opportunity for owners to rent the space Choice of Greenwood or two other preferred caterers as agreed upon by the Association and Greenwood Owners can bring food and beverage in before 5pm each day or receive service from the Dunes House After 5pm, food and beverage must be purchased from the Dunes House One selected evening each week owners can bring in their own food and beverage Who can use the Dunes House? The new second floor and rooftop Clubhouse is for Palmetto Dunes property owners (excluding Leamington and Shelter Cove), their accompanied guests, and officiallyrecognized Palmetto Dunes social groups.
PAGE | 08 As commercial property owners, the Self Family will be granted six special memberships for their family. Renters and vacationers will have access to the commercial operations of the Dunes House on the first floor as they currently do, but not the second floor or rooftop. The Association will utilize both staff and technology to control access to the upper floors. What happens to the Dunes House and adjacent properties during construction? Beach access will be provided during the construction of the project Existing beach access is being replaced after project completion. Landscape screening/buffering installed between the new Dunes House and neighboring properties Ingress/egress provided to Beach Villas and the Moorings during construction New controlled access gates for Moorings and Beach Villas owners to secure their parking lots How do we fund this amenity? The annual lease payment of $170,000 will be funded by the Community Enhancement Fee, with no impact on the residential assessment. To offset operating costs, there will be rental opportunities for owners as well as Greenwood to rent the second and third floors. Redevelopment of Dunes House Lane would be funded with the Repair and Replacement Fund with an estimated cost of $600,000. Conversion of the tennis courts for parking and expenses to furnish and add technology to the POA space would be funded with the Community Enhancement Fee with an estimated cost of $260,000. Initial costs for equipment and furniture for the upper floors is estimated to cost $150,000. Any additional expenses would be absorbed by the Operating Budget, resulting in no anticipated impact to residential assessment based upon financial assumptions.
DUNES HOUSE NEXT STEPS
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WHAT HAPPENS
N E X T
We need to hear from you! You will receive a survey within the next 7 days. Only one survey will be sent per property. To make sure your survey is sent to the correct email address, email Sara Manesiotis at smanesiotis@pdpoa.org to verify your primary email address. Please complete and return your survey. Your feedback is critical! The survey results, along with a draft commercial lease, will be presented to our Board for their consideration. If our Board votes to move forward with the project, the next steps would be: Finalize the execution of the Lease. Greenwood will submit the Zoning Map Amendment to the Town of Hilton Head for additional density. If zoning is approved, our Board would consent to the Dunes House Covenant Amendment. Phase II: Architect drawing and securing a General Contractor prior to the end of the year.
More FAQ with elevations and floor plans can be found at:
www.pdpoa.org/beachfront
843.785.1109 | 16 Queens Folly Rd. Hilton Head Island, SC 29928 | www.pdpoa.org