Business owners uncertain after Beaufort annexes a chunk of Lady’s Island

Some Lady’s Island business owners expressed uncertainty Wednesday as to how one of Beaufort’s largest annexations might affect them.

The city of Beaufort added a private Lady’s Island golf community and numerous business properties along Sea Island Parkway on Tuesday. City Council voted to approve the annexation and associated zoning Tuesday.

Some business owners were still working out how new property taxes and business license fees would affect their finances.

Secession Golf Club and its associated private housing community asked to be brought into the city. City officials used the request to convince 11 businesses along Sea Island Parkway to join the annexation and fill in pockets of unincorporated Beaufort County between city properties.

The businesses to be brought into the city include Wells Fargo and CBC National banks, the Fillin’ Station, Butler Marine, Zippy Lube, a dentist office, gas station, dive shop, former movie theater and a tomato-packing facility.

The city laid out potential property tax and business license incentives if the businesses voluntary joined the annexation request.

“Early on it’s going to reduce some costs for us,” said Chris Butler, owner of Butler Marine on Sea Island Parkway. “But ultimately in the long run it will cost us more money.”

Butler estimated after the initial discounts that being in the city would begin to cost him more in about 12 years.

City attorney Bill Harvey wrote in letters to the business owners that the businesses could still be added to the annexation under state law, and that incentives wouldn’t be available unless the annexation was voluntary.

Butler said based on the scenarios, he had no choice but to join the petition. Opposing the annexation would have been a gamble and could have jeopardized the incentives, he said.

Butler, a Cat Island resident, wondered if his nearby community could be annexed under the same rules.

Larry Kizer, co-owner of Zippy Lube, said he also felt the city’s explanation left him little choice.

“It pretty much sounded to me like in the future you would not have a choice,” he said.

Kizer said he anticipates higher costs after the initial incentives but had not crunched numbers.

Beaufort Mayor Billy Keyserling said nobody was coerced and that no one spoke when the annexation was reviewed by a northern Beaufort County planning committee or during two votes by City Council.

A plan outlining city growth boundaries allows it to absorb almost all of Lady’s Island, from southern Cat Island to the northern tip. Keyserling said the city is only eying up to Miller Road on Sams Point Road and out to Chowan Creek Bridge on Sea Island Parkway, although there has been talk of limiting any growth beyond the new Wal-Mart development at Airport Circle.

The city anticipates about $125,000 in additional annual revenue from the new property. Beaufort officials say annexing the commercial property is part of a plan to fill in gaps of unincorporated areas between city property.

The 56 properties in the Secession Golf Club area include the private golf course and 15 homes and vacant lots in nearby Blue Gray Estates. One of the properties is Secession’s office and some are wetlands and lagoons.

Secession initiated the request in part because Beaufort County was going to require fire sprinklers in its member-owned golf cottages used by members and guests during visits. The city will not require the sprinklers.

“That was just one (consideration),” Beaufort city manager Bill Prokop said.

This story was originally published February 15, 2017 at 6:14 AM with the headline "Business owners uncertain after Beaufort annexes a chunk of Lady’s Island."