Hilton Head Town Council met privately with second island officials

Unbeknownst to the public, Hilton Head Island Town Council members met with developers and resort officials in the months leading up to a decision to start an annexation process for a second island.

The private meetings, held in locations such as a board room at Sea Pines Resort, started as early as June with representatives of Bay Point Island LLC and Six Senses Hotels Resorts Spas out of Bangkok, Thailand, council members told The Island Packet and The Beaufort Gazette.

The South Carolina Press Association’s attorney contends those meetings were illegal, while the executive director of Common Cause South Carolina, a government watchdog organization, says such type of meetings create an “insider game” atmosphere.

Town Council members have argued the meetings were legal and needed to protect the confidentiality of private business while the legitimacy of the proposal was being vetted.

The meetings consisted of individual council members or small groups no larger than three. Every council member confirmed they attended at least two meetings with developers and resort officials.

The meetings also included tours of the 347-acre Bay Point Island with the developers. Tours were not offered or given to town staff, Town Manager Steve Riley said when contacted by the newspapers.

The first trace of the proposed annexation was released to the public via a town council agenda issued Sept. 16.

Four days later, the council unanimously approved the annexation petition despite residents calling for it to be tabled. Residents said during the meeting they needed more time to understand the proposal.

Mayor David Bennett said the approval only started the process, which will consist of public hearings throughout the next four to five months. The hearings will be for zoning and a development agreement for the property.

“No firm decision has been made,” Bennett said. “There is plenty of opportunity for the public to let us know their thoughts before a firm decision will be made, and I am very interested in those thoughts.”

Town staff denied a request by the developers to put a first ordinance reading to annex the property on the town’s agenda for Tuesday, Bennett said.

“We rejected that request,” Bennett said. “This is only a vote of affirmation that we are willing to enter into discussions.”

Private meetings are sometimes needed with developers before projects move forward, Bennett said.

“It puts some meat on the bones, “ Bennett said. “You listen to what they are proposing and can ask questions. They can go get that information and provide you the answers.”

Every member of the council contacted by the newspapers shared similar reasons for the private meetings. But Jay Bender, attorney for the South Carolina Press Association, said the meetings would be considered “secret government activity” and in violation of state law.

“The law is very clear that no chance meetings or scheduled meetings should be used to circumvent the law,” Bender said. “Citizens need to be calling their council members telling them, ‘This smells bad — you had all these secret meetings — how much were you paid for your vote?’”

Hilton Head Town Attorney Brian Hulbert said, however, the discussions Town Council members had with developers and resort officials were not illegal. He said more than one board member can meet with other board members if a quorum is not met. For Hilton Head Town Council, a quorum is four or more members.

Scott Slatton, legislative and public policy advocate with the Municipal Association of South Carolina, said municipalities in the state gather information in different ways.

“If the council and staff are gathering information, that seems appropriate before they make decisions in a meeting,” Slatton said. “Gathering information is whatever works best for a particular city and town.”

John Crangle, executive director of Common Cause South Carolina, said it is not unusual that town officials would meet with developers in private.

“Towns defend this by saying the company they are trying to recruit would be delayed by the public learning of it,” Crangle said. “Maybe there is some validity to that; maybe it would scare them off. Even so, it creates an environment where insiders can take advantage of the situation.”

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This story was originally published September 24, 2016 at 4:21 PM with the headline "Hilton Head Town Council met privately with second island officials."