Hilton Head releases lock-out legal letter, just not the one they have

A legal letter about condominium “lock-outs” released by the Town of Hilton Head Island on Monday has only added fuel to a years-long burning debate.

Opponents of lock-outs say the letter gives them the ammunition to take the town to court. Proponents argue the letter states the town should stay removed from the private issue.

Both sides say they are frustrated that another legal letter given to Town Council in July by the Columbia law firm Robinson, McFadden & Moore remains private. The letter released Monday is a recap of the July letter, which hasn’t been released despite demands by the public.

Lock-outs divide condominium rental units into two or more by locking or caulking a door shut. The practice allows owners to collect more rent on a space. Opponents have argued it is a safety risk and increases crime.

The units are common in Oceanwalk Villas and Xanadu Villas in the Forest Beach Drive area.

“The letter is addressing there is a need to take the issue to circuit court,” Jack Daley, president of the Forest Beach Owners Association, said Monday. “The code has so many gaping holes that we need someone else to figure this out.”

The letter does not say the issue should be appealed in circuit court but instead notes that no one has appealed the town’s decisions.

Town officials repeatedly have said town and state codes allow the lock-out units. While the letter supports the town’s prior decisions, it doesn’t give a clear answer on the legality of lock-outs.

Bob Hopkins, an Oceanwalk lock-out owner, said the letter supports proponents of split units.

“The way I read this, Oceanwalk will get itself into gear and deal with its own problem,” he said. “It says the town will stay out of the way.”

Concerns about high crime related to lock-out units could be addressed if Oceanwalk regulates the way people rent those units, including a better screening process for renters, he said. Monday’s letter says the town might have to consider “further regulatory control” if public safety problems persist.

Town Manager Steve Riley said Monday the July letter contains private legal advice, which has been cited as a reason why Town Council has decided not to release that letter. The town hired the Columbia law firm for outside legal advice.

“I asked if we could instead release another letter,” Riley said. “We needed to get something out so that the public knows the conclusion on basic questions.”

Hopkins, who was denied a copy of the July letter after filing an open-records request, said Monday he still wants to see the original letter.

The public has no idea what is in the July letter, Daley said.

“I think there must have been more discussion about this going to circuit court,” Daley said.

This story was originally published October 3, 2016 at 4:50 PM with the headline "Hilton Head releases lock-out legal letter, just not the one they have."