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Safe Harbor Marinas can move forward with redevelopment of Port of Port Royal

By Scott Graber

The Island News

On Wednesday, Feb. 12, the Town of Port Royal announced that it had reached a settlement with SHM Port Royal a/k/a Safe Harbor.

After an executive session that lasted 30 minutes, Town Council voted 3-0 to approve a settlement reached earlier this month after two marathon mediations in Columbia.

The disagreements between Safe Harbor and Port Royal officially began on Dec. 14, 2023, when Mayor Kevin Phillips wrote a six-page, single-spaced letter to Peter Clark at Safe Harbor.

The letter laid out the Town’s objections to the huge cranes and the fabrication of concrete docks then underway at the site. It also objected to the apparent decision to develop the Bluff Neighborhood as “build to rent.” There were also problems surrounding the location of the proposed easement for the Spanish Moss (Bicycle) Trail.

On March 20, 2024 the Town of Port Royal filed a Petition asking that the Court of Common Pleas grant a permanent and temporary injunction prohibiting Safe Harbor from using certain parts of its newly acquired property for “dock manufacturing”.

In it’s Petition, the Town alleged that the original Planned Unit Development Agreement dated Aug. 9, 2017, and thereafter amended, allowed commercial, retail, light industrial, among other uses, but the “Respondent began using the Property for the manufacture of large floating docks, an activity requiring large scale machinery and equipment …”

The settlement reached with Safe Harbor will give that company an 18-month-long permit to build its docks (and related structures) on the site.

It will cap the rental units throughout the project, including the Bluff properties, at 15%. Also, “Rental Units shall not include multi-level apartments or condominium developments, which shall be prohibited in the Residential Areas.”

It will give Safe Harbor five “townhouse lots” adjacent the Shed in exchange for what is called the “Beer Garden property” adjacent Sands Beach which is currently being used as a parking lot.

Safe Harbor will sign and deliver a 16-foot-wide easement that will allow the Spanish Moss Trail to cross over Ribaut Road and extend south along the old railroad right of way to Ritter Circle.

Safe Harbor will be allowed to maintain eight “Conex boxes” that will be screened from public view in order to service large, ocean-going sailboats.

There is still lingering concern about some items — like where the waterfront promenade will begin and end — that have yet to be worked out. But Mayor Kevin Phillips confirmed that “there will be a promenade and Safe Harbor will produce a Master Plan detailing all of the intended improvements within six months.”

Dean Moss, Executive Director of the Friends of the Spanish Moss Trail, said he was happy about the settlement even though “the process had consumed five years.”

There was also discussion about the new dock that will service the seafood processing facility and the shrimp boats in the area between the Fish Camp Restaurant and the Shellring Ale Works. This dock will be designed in a way that will allow the public to access the dock and, hopefully, to view a revitalized shrimp boat fleet up close.

Town Manager Van Willis also revealed the Town’s intention to extend the existing boardwalk that would effectively double its length and, perhaps, connect it with the so-called “Sands Park” located to the north of the Sands Beach Road.

Perhaps the most important item in the settlement agreement is the requirement that the Town and Safe Harbor meet every three months “to discuss the status of development.” As mentioned herein, there are unresolved items that will require discussion and resolution. Having a meeting every 90 days — and keeping the public informed — will help.

“A lot of hard work and productive compromise has produced a solid path forward where the Town of Port Royal and the Safe Harbor Marinas teams can work in unison on proposed development plans including providing an easement to extend the Spanish Moss Trail, a land swap to provide additional land to the Town, and residential development concessions. If approved by the Port Royal Town Council, the proposed settlement agreement establishes regular, joint meetings between the Town and Safe Harbor Marinas. We are grateful to be part of the Port Royal community, and we look forward to working together,” said Ron Gift, Regional Vice President, Safe Harbor Marinas.

Scott Graber is a lawyer, novelist, veteran columnist and longtime resident of Port Royal. He can be reached at [email protected].

The unspoken mood in the room at the Port Royal Town Council meeting Wednesday was “let’s finally get this going.”

Redevelopment of Port Royal’s prized waterfront — sometimes called its front porch — is now only months away from starting following decades of contention and failed negotiations.

The council approved a far-reaching settlement with developer Safe Harbor Marinas to resolve a litany of disputes and details and finally get the massive project moving forward.

With the agreement in place and approved Wednesday by the Town Council and Friday by Safe Harbor — the long-awaited beautification of two miles of waterfront at the Port of Port Royal can finally begin, town and Safe Harbor officials said.

Safe Harbor is now agreeing that at least 85% of the houses will be for-sale. All of the units would have been rentals under the initial plan, which caused an outcry from local residents. This was a key concession in the deal, which came after months of negotiations.

Safe Harbor also agreed to grant the town a critical easement needed to expand Spanish Moss Trail through the development. And a land swap, also included in the agreement, will provide additional properties to the town. On one of those locations, the town is planning to build a new shrimp dock. At another, the existing boardwalk will be extended through the marsh.

The settlement comes more than three years after Safe Harbor bought the shipping port once owned by the South Carolina Ports Authority but Port Royal residents have been waiting more than 20 years to see the town’s scenic waterfront properly developed ever since the state closed its shipping terminal in 2004.

City Councilman Jerry Ashmore characterized the settlement with Safe Harbor as “historic” with the land abutting Battery Creek months away from being transformed into a 140-slip marina and build out known as the planned unit development.

“It’s been a long-time coming,” said Councilman Darryl Owens, who described the settlement as a “great compromise” that will protect the town’s culture and natural environment.

Councilman Jorge Guerrero credited residents for speaking out, noting that the sight of large cranes on the waterfront prompted them to begin lobbying for changes in the development plans. “Your tenacity is what got us to this point,” Guerrero said.

Safe Harbor purchased the land for $20 million in 2021 but it wasn’t long before disputes arose over the proposed plan to build rental housing, a trail extension through its land and other issues like the construction of large docks on the site for use at other Safe Harbor locations. Little actual construction has occurred other then site clearing and the demolition of the former Ports Authority terminal as the two sides ended up in court followed by mediation that eventually led to the settlement.

“It was contentious at times but we worked it out,” Mayor Kevin Phillips said.

Phillips apologized to the public for not being more forthcoming earlier but said confidential negotiations limited what could be said publicly. The efforts included a 9-hour mediation session in Columbia in November that Phillips said set the framework for the agreement that the Town Council unanimously approved Wednesday.

“It’s huge,” Phillips said after the meeting, referring to the significance of the deal. “It starts the process of really working together on the development on this Port Royal property.”

Ron Gift, Safe Harbor’s regional vice president, said in a statement that “we’re grateful to be part of the Port Royal community.”

Here’s 10 highlights of the agreement:

The agreement settles a dispute over the type of housing that will be constructed in areas overlooking Battery Creek.

In August 2023, Charleston-based The Beach Co., working with Safe Harbor, outlined a plan to build 200 town houses and 30 single-family homes. All of the units would be “build to rent,” it said, which immediately sparked opposition. The town envisioned construction of owner-occupied single-family houses.

In the settlement agreement, Safe Harbor has agreed to limit rentals to 15% of the total residential units. Multi-level apartments and condominiums are prohibited.

Safe Harbor officials have indicated to the town that they eventually plan to sell the real estate part of the development, Phillip noted.

Another dispute that the agreement settles involves the Spanish Moss Trail.

In February, 2024, the Town Council was prepared to approve an easement with Safe Harbor that would allow about a quarter of a mile of Spanish Moss Trail to cross Safe Harbor land from Ribaut Road to Ritter Circle. But the deal fell apart.

Under the agreement, Safe Harbor will donate a 16-foot easement that will allow the trail work to proceed.

The town had owned one of the few publicly owned commercial fishing docks remaining in South Carolina. But it tore down the old rickety dock in 2023 and also removed dilapidated shrimp boats tied to it. That followed a 2021 vote by the Town Council to suspend shrimp processing after spending hundreds of thousands in public money since 2006 in an attempt to preserve the local cultural heritage of the industry.

A land swap is included in the agreement will give land known as Lot G, located between the Fishcamp on 11th Street restaurant and Shellring Ale Works, to the town where new shrimp docks and a new seafood processing facility are planned. An area where residents will be able to view the shrimpers as they unload their catch will be part of that development, Guerrero noted. A dock that the community can use also are part of these plans.

In the land swap, the town will also receive property known as the “beer garden,” and adjacent areas in the marsh. Having the beer garden property and “strips” of land through the marsh will allow the town to extend its existing boardwalk along Battery Creek to create a loop, Phillips said. “You’ll be able to go through the marsh eventually,” he said.

In return, Safe Harbor received five lots from the town behind the Shed building. The town also waived Safe Harbor’s $150,000 commitment toward building the seafood facility.

The town took Safe Harbor to court last March arguing it was breaking town rules by building large floating docks at the property. The town alleged the docks were not being built for the local marina construction but were being shipped to other locations. Safe Harbor responded with a lawsuit of its own that disagreed with the town’s stance.

The agreement calls for adding a revised “clarifying” definition of “light industrial” to the development agreement that excludes dock manufacturing.

The town will issue a temporary use permit to Safe Harbor for up to 18 months to build the docks for the Port Royal marina.

The settlement sets a deadline for Safe Harbor to deliver a “reasonably comprehensive master plan” to the town that includes a timelines for development of the marina. That deadline is six months.

The town now has three months to amend the current development agreement and planned unit development to included the settlement terms.

When the development agreement is amended, both sides will dismiss all the legal claims. “We are basically letting all that go,” Phillips said.

Safe Harbor has received permits from both the South Carolina Department of Health and Environmental Control and the U.S. Army Corps of Engineers for the marina, Phillips said. The company has said previously that it was attracted to Port Royal because no bridges will restrict the coming and going of boats, and by the depth of Port Royal Sound, which can reach 60 feet deep, making it the deepest natural harbor south of Chesapeake Bay. It’s location halfway between New York and Fort Lauderdale also will make it a convenient stopping point for coastal traffic, Phillips said.

“It’s going to be jewel to them,” Phillips said.

The agreement will allow Safe Harbor to have up to eight portable storage containers known as Conex boxes on the grounds. Conex boxes are a type of cargo container used to store supplies. These boxes will be used by the large sail boats that are expected to use the marina, Phillips said. The original PUD did not allow them.

After enduring months of communication breakdowns, officials with the town and Safe Harbor agree in the settlement to meet every three months to discuss status of the development. The joint meetings will “ensure open lines of communication continue,” Safe Harbor Marinas’ Gift said.

This story was originally published February 13, 2025 at 9:46 AM.

The Island Packet

843-256-3420

Karl Puckett covers the city of Beaufort, town of Port Royal and other communities north of the Broad River for The Beaufort Gazette and Island Packet. The Minnesota native also has worked at newspapers in his home state, Alaska, Wisconsin and Montana.

As the new year begins, Port Royal officials are guardedly hopeful that one of the most highly anticipated and most contentious developments north of the Broad River will finally get off the ground in 2025.

The area in question is where dolphins and boats cruise Battery Creek as cars cross the Russell Bell Bridge. People walk the beach or boardwalk. Patrons of shorefront restaurants enjoy a cocktail at sunset. Safe Harbor Marinas purchased land within this classic Lowcountry setting on the water in Port Royal with promises to build a world-class marina and hundred of units of residential housing. Three years later, there’s neither.

“There has been some meetings, there have been some talks and I think we’re all cautiously optimistic,” Councilman Jerry Ashmore said. “So stay tuned. I hate to say it. But stay tuned.” The public will wait and see if there’s any real progress on the horizon.

Ashmore’s comments came at a Town Council meeting Wednesday when Tricia Fidrych, a Port Royal resident who has previously criticized Safe Harbor’s plans and called for more transparency about them, urged town officials to share what they can about the latest developments.

The outlook of Mayor Kevin Phillips, piggybacking on Ashmore’s comments, also was positive.

“We’ve all been working very hard with them,” Phillips said, “and hopefully we can give a really great update really soon.”

Later, Phillips said the two sides never completely stopped talking even as the disputes over the development played out but talks picked up at the close of 2024.

“We are negotiating with them about issues we are trying to get resolved,” Phillips said. “And we feel like we are very close to that.”

Later in Wednesday’s meeting, Town Council members went into executive session, which is closed to the public, to discuss legal issues tied to the Safe Harbor development. “Hopefully — fingers crossed — it will be our last executive session” regarding Safe Harbor, Phillips said.

Safe Harbor initially ran afoul with the residents when a partner in charge of the housing proposed rental townhouses instead of owner-occupied houses. The town was also caught off guard when Safe Harbor began constructing large portable docks on the waterfront and shipping them to marinas it owned at other locations. The noisy industrial use of the waterfront violated the town’s rules, it argued.

After talks between the two sides a year ago, both sides expressed optimism. But in March, citing the violation of zoning ordinances, the town filed court documents intended to stop Safe Harbor from manufacturing large portable docks on the site.

Town officials said Wednesday that it’s been difficult to remain silent.

“I’m excited,” Phillips said.

“But,” Ashmore added, “we’ve been excited before.”

The land, which is located in the old village part of the town, abuts Battery Creek. It was once the home of a South Carolina Ports Authority terminal. A marina-centered development that includes retail and housing and improved public access has been talked about for years.

Port Royal residents, who are fiercely protective of the town’s vision for the property, see economic and quality of life benefits in developing the land around the port, which has been vacant since 2004. Besides investment in the marina and related businesses and the housing, a public park and promenade are part of the plan as well as improved docks for shrimp boats.

Safe Harbor Marinas announced in December 2021 that it had purchased 300 acres for $20.5 million from Grey Ghost Properties. About 50 acres of the marshy area is suitable for development.

Grey Ghost, which had bought the land from the South Carolina Ports Authority for $9 million in 2017, laid the groundwork before selling to the well heeled Safe Harbor, which operates a network of marinas across the country.

The purchase set the stage for development of a 150-200-slip marina that Safe Harbor said would be a “world class” boating destination because of the deep water of the Port of Port Royal and its location between New York and Key West, possibly even attracting an occasional “megayacht.”

Safe Harbor began operating an existing 240-boat dry stack storage business and getting the site ready for development, which included demolishing the 70,000 square-foot Ports Authority shipping terminal built in 1959. It’s also been trying to secure permits for the marina. But no construction has occurred.

Information about the plans has been hard to come by since the situation ended up in a legal tangle 10 months ago.

Fidrych, the Port Royal resident, showed up at a Wednesday’s Town Council expecting an update after hearing that a meeting between town and Safe Harbor officials was planned last week. Port Royal officials emphasized that they had to be careful about what they said but “we think we are very close to something,” Phillips said.

“That’s something,” Fidrych told council members.

December 2021: Safe Harbor Marinas announced it has acquired the former South Carolina State Ports Authority terminal in downtown Port Royal.

August 2023: The Beach Company unveils a plan to build more than 200 town houses and some 30 single-family homes. But the units, which will have enviable views of Battery Creek and the Bell Bridge crossing it, will be for rent, not for sale.

September 2023: Residents push back on a plan by The Beach Company that it must build 200 townhomes and some 30 single-family homes — and rent them all — in order to make a housing project along the town’s prime waterfront “pencil out.”

October 2023: Carrying signs that said “Please Care,” “Don’t Ruin Our Port” and “What Happened to the Dream,” Port Royal residents rally for changes in the port property as the Town Council discusses the issue in executive sessions.

December 2023: Port Royal sends a six-page letter to Safe Harbor Marinas demanding answers on why they’ve seen little progress in the two years since Safe Harbor purchased the property. The town also threatens breach of the development agreement if Safe Harbor keeps using the property to build docks that have nothing to do with the Port Royal redevelopment.

February 2024: Port Royal and Safe Harbor Marina officials say a Feb. 1 meeting called to air concerns about a marina-centered development on the town waterfront restarted a long-stalled dialogue.

March 2024: Citing the violation of zoning ordinances, the town filed court documents intended to stop Safe Harbor Marinas from manufacturing large portable docks on the developer’s property abutting Battery Creek, describing the use as illegal and a “dangerous activity” that’s already lead to one death and numerous public complaints. The docks being built are not intended for use in Port Royal but in other Safe Harbor facilities along the east coast.

August 2024: A potential move by Safe Harbor to switch residential developers for the housing planned on the shores of Battery Creek revises a previous path to build rentals. The old plan stirred up a hornet’s nest of opposition while the new one might go a long way toward easing the tension.

January 2025: Town officials say they are cautiously optimistic the town and Safe Harbor will work out their differences.

This story was originally published January 17, 2025 at 9:34 AM.

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