Whitehall developers want city, county help to build public park
The developers under contract to purchase Whitehall Plantation want a commitment from local governments and nonprofit groups to help pay for a public park on the property before they close the deal.
Developers Steve Tully and Dick Stewart are asking for $3.3 million in public and nonprofit organization money to create a public waterfront park on Whitehall, which is located on Lady's Island just across the Woods Memorial Bridge from downtown.
The park would be a little more than 4 acres and would require the Beaufort County to donate the .64 acres it owns.
"It's a bargain for the community," Tully said. "If the city and county and state step up and fund it, great. If they don't, it won't be a public park. It will be something else -- probably not something Dick and I would develop."
Outside of the small tract the county owns, the rest of Whitehall's 19 acres are in the city.
The developers plan about 76 homes on the property, which they are buying in a short-sale from Aslan Whitehall LLC.
Various owners have attempted to develop the property in the past. Stewart's 303 Associates previously owned the property, selling in 2005 after it was annexed into the city.
Stewart and Tully had their 3 1/2 acres for the proposed park appraised at $3.8 million.
Another estimated $1.8 million for infrastructure for the park would build a road with parking on both sides, a public pier and a boardwalk connecting Whitehall to the Richard V. Woods Memorial Bridge.
Paying for it
The developers say they will contribute $2.3 million of the park's estimated $5.6 million cost.
They asked Beaufort City Council at a work session last week to lead the push for the rest of the funding, by either buying the 3 1/2 acres for the park or paying for its infrastructure.
They suggested using money borrowed on future tax gains expected from the new homes or establishing Whitehall as a multi-county business or industrial park, in which community residents would be charged a payment in lieu of their property taxes that would pay down the development debt.
The city would have to ensure that whichever method is used, the revenue is enough to cover the debt and not incur costs to taxpayers, city manager Bill Prokop said.
Separate from whatever financing method eventually funds the park Whitehall property owners would each pay the city an annual fee estimated at $1,200 -- or about $90,000 total each year from the 76 planned lots -- to cover maintenance of the park and the development's roads.
In order to pay for the park, Tully is also seeking contributions from entities such the Beaufort County Open Land Trust, the county's Rural and Critical Lands Preservation Program and the S.C. Conservation Bank.
The developers next plan to meet with Beaufort County Council's finance and natural resources committees.
'We need champions'
Beaufort's civic master plan includes a Whitehall Waterfront Park along side a traditional neighborhood setting and envisions the project completed with public and private investment.
Under the master plan, the park would be a passive green space and the Whitehall development a complement to downtown that doesn't compete with the historic district.
"I don't think there is anybody that doesn't want to see this happen," Mayor Billy Keyserling said during the work session this week.
Keyserling said Thursday that the only way the city could contribute is from reliable revenue created based on the future growth of the development.
The 76 proposed home sites are less dense than previous development plans.
Jim Hicks, who pens a newsletter for the Lady's Island Business and Professional Association, wrote this year that Aslan had planned 300 condominiums, 92 homes, 25,000 square feet of commercial/retail space with lofts and a cafe in addition to a waterfront park.
Hicks, a former Metropolitan Planning Commission member and Beaufort County Planning Commission chairman, said property values were so high during past efforts that density had to also be high to cover costs.
Traffic is also a concern, Hicks said. A new Walmart is being built a little farther down Sea Island Parkway near the proposed Whitehall development.
"It doesn't take a genius to know the Lady's Island community is for a public-private venture that will allow the property to be used as a park," he said.
If the park doesn't happen, whoever develops the property would might extend lots across Harborview Drive to build waterfront homes and maximize potential returns, Tully said.
He and Stewart hope to have the money for the park committed before closing at the end of the year.
"Things are moving, but we need champions," Tully told City Council. "We can't do it by ourselves."
Follow reporter Stephen Fastenau at twitter.com/IPBG_Stephen.
Related content:
- Whitehall Park plan moving forward; developer says potential buyers showing interest , Jan.8, 2015
- Developers team up to develop vacant Whitehall Plantation , Oct. 31, 2014
- Civic Green meeting focuses on Whitehall, Waterfront Park, parking , Aug. 21, 2014
This story was originally published August 23, 2015 at 6:40 PM with the headline "Whitehall developers want city, county help to build public park."