Real Estate News

‘They get it!’: Should more Hilton Head businesses build affordable housing for workers?

When one of her regular riders got into her cab in Bluffton last week, Veronica Cihlar was happy to learn he’d finally found an apartment.

He was moving to Hilton Head, where he worked. While that move meant he would no longer be riding with her as often, she was excited for him nonetheless.

Cihlar said she was even more surprised to hear he was moving into apartments that were developed by the company that owns his workplace: Local Pie.

“He is so excited to be moving into his new apartment in six weeks at the old Sheriff’s Department at Coligny Plaza!” Cihlar wrote in a Facebook post. “Just the money he will save in cab fare alone is astronomical!”

The Richardson Group, the island-based real estate and marketing firm that owns Local Pie, the South Carolina Yacht Club and several Coligny developments, will open eight studio apartments next month on the site of the old Beaufort County Sheriff’s Office building on Lagoon Road, according to Lee Lucier, the group’s chief operating officer.

Lucier said the new apartments will be “studio-style” and that rent will be between $700 and $800 per month plus utilities for the new residents. He characterized the studios as “affordable.”

An architectural rendering of the Hilton Head Symphony building and Lagoon Lofts development in the Coligny area. The apartments on the second floor were developed by The Richardson Group and Local Pie owner Lee Lucier for “young professionals.”
An architectural rendering of the Hilton Head Symphony building and Lagoon Lofts development in the Coligny area. The apartments on the second floor were developed by The Richardson Group and Local Pie owner Lee Lucier for “young professionals.” The Richardson Group Design Review Board materials

Lucier said the units are “housing that hasn’t been done on the island” before since the project repurposes “unused and unneeded commercial” spaces for housing needs.

Cihlar told The Island Packet that those housing needs directly hurt the hospitality industry.

“Young people used to flood the area for great jobs, especially in (food and beverage),” she said. “Now they can’t afford rent to move here and fill the many job openings.”

Soaring rent on Hilton Head

A previous Island Packet analysis of Zillow and Craigslist postings found that rental rates on the island have increased by 50 percent in the past five years, reaching an average of $1,500 per month in January 2018.

High rental rates mean that housing insecurity is a fact of island workforce life — from teachers to restaurant kitchen staff.

Even Cihlar feels the pressure. A school bus driver, she’s been driving a cab on Sundays since January to supplement her income.

“No one working so much and so hard should have to struggle the way so many do,” Cihlar said.

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Workforce housing: everyone’s concern

The idea of redeveloping old buildings for new housing has been a hot-button issue for Hilton Head mayoral candidates this year.

Candidates Kim Likins, John McCann and Rochelle Williams all said in candidate forums they support rezoning old commercial space to develop workforce housing.

Other groups are organizing on island workforce housing.

The Hilton Head Island-Bluffton Chamber of Commerce started a business workforce coalition earlier this year, which matches business owners on the island with chamber representatives to discuss housing initiatives that affect their industries.

The group has hosted events in gated communities to discuss how affordable housing can benefit all islanders, chamber vice president of public policy Hannah Horne said at a September meeting.

The Town of Hilton Head Island has hired an affordable housing consultant to study workforce housing needs and develop recommendations. Lisa Sturtevant and Associates said the team will offer the town options by April 2019. The group will be paid no more than $46,960, Richard Groth, the town’s procurement officer, said Tuesday.



Lisa Sturtevant, founder of Lisa Sturtevant and Associates, LLC., delivers the timeline for developing a workforce housing plan for the Town of Hilton Head Island.
Lisa Sturtevant, founder of Lisa Sturtevant and Associates, LLC., delivers the timeline for developing a workforce housing plan for the Town of Hilton Head Island. Katherine Kokal, the Island Packet.

Sea Pines Resort also purchased a strip mall and vacant lot on Palmetto Bay Road in 2017, which Cliff McMackin, director of resort development, said may be used for housing the 200 interns Sea Pines employs every year.

McMackin did not respond to four attempts Monday for comment on the progress of that plan. There have been no formal announcements of plans for the site.

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‘They get it!’

Lucier said all eight apartments have renters lined up to move in next month, including Cihlar’s regular rider. Although the housing was offered to employees of Local Pie, he said not all the residents work at the pizzeria.

Cihlar supported Local Pie in her post about the apartments in the Bluffton/ Hilton Head Ask and Answer Facebook group.

“They GET IT! There is a huge shortage of affordable housing for dedicated workers,” Cihlar wrote. “Please join me in supporting Local Pie pizza who places value in their workers and making such a difference in their lives! Local Pie, you rock!”

This story was originally published October 23, 2018 at 2:44 PM.

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