Palmetto Bluff homeowners could face a significant club fee increase. Here’s how much
People living in Palmetto Bluff, the giant private community in Bluffton, soon could see their $4,894 basic annual membership fee double — something that is not sitting well with residents.
Residents, some of whom are already involved in a class-action suit against the developers over access to club amenities, say a lack of transparency and a disregard for their input have left them weary.
“The members really feel like decisions are made and actions are taken that affect us either in the short term or the long term without them even knowing whether we want it or not,” said Jerry Mothershead, who has lived in Palmetto Bluff for 3 1/2 years. “No one’s ever asked me or anyone I know ‘What are the things that make this place unique that you’d like to see improved?’”
In an email to residents late last month, South Street Partners, the owners of Palmetto Bluff, said that doubling membership fees is an option they’re considering to “move towards a financially viable Club.”
“One way to meet the base Club’s current operating financial shortfall would be to significantly increase the base Club dues (as much as a 100%) in order to break-even,” the email read. “Increasing the dues at this level would place the Club in line with the regional average but still below the high-end industry standard.”
Palmetto Bluff is Bluffton’s largest private residential community with a golf club and resort totaling 20,000 acres in south Bluffton and space for more than 4,000 residential dwelling units.
In the past, fees were low to incentivize real estate sales, according to South Street. But now, South Street, which purchased the community in early 2022, is looking to have a model where membership dues adequately cover the club’s expenses, according to the email.
By comparison, Berkeley Hall, a smaller, private golf community in Bluffton that features two Tom Fazio golf courses, has a yearly membership fee of $24,230.
South Street Partners declined to comment about the potential fee increase.
Mothershead said one reason he and his wife chose Palmetto Bluff was the affordability of the club membership and the option to forgo access to the golf club if they want.
Mothershead, understanding the economic state of the world, said he “wouldn’t bat an eye” at a 10 to 30% increase, but 100% may be too much.
“I think most people down here do not want to see their dues dramatically go up by 100% in one year,” he said.
What makes the increase even harder for residents is their already tense relationship with the developers.
Earlier this spring, South Street stopped allowing guests to use amenities, a decision that led to residents alleging “an attack on short term-rentals,” over crowded amenities and forced paid membership in Palmetto Bluff, in a lawsuit filed against South Street.
According to the suit, residents who pay for the amenities “frequently” find they are “overwhelmed” by hotel guests and events, who receive “preferential treatment” according to the lawsuit. Homeowners no longer have access to the amenities that influenced them to purchase within Palmetto Bluff in the first place, the suit claims.
In September a judge denied South Street Partner’s motion to compel arbitration, which means the case will go to court.
Mothershead said South Street has prioritized their own judgment on what the member experience should be over the judgment of the members themselves. But South Street says they’ve made strong progress in bettering member experiences.
“We feel that the initiative to separate management of the Club and commercial operations from the Montage hotel operations has had a positive impact on the Club, hotel, and broader community,” South Street said in the email.
However, some residents say they haven’t seen much improvements at all.
“I haven’t experienced any improvement in anything, quite honestly,” said a resident who asked that their name not be used. “In fact, from my experience, it’s actually been worse up to this point.”
As an alternative to such a large price increase, South Street said it will consider reevaluating guests’ use of the amenities. To assist with that decision, a survey for members gauging opinions on amenity access for guests to the resort was included in the email.
The survey asked whether hotel guests and short-term renters should have unlimited, limited or no access to member amenities, and what, if any, amenities they could use. The results of the survey will be revealed during Palmetto Bluff’s next town Hall on Jan. 17.
This story was originally published December 9, 2022 at 11:43 AM with the headline "Palmetto Bluff homeowners could face a significant club fee increase. Here’s how much."
