Changes proposed in Port of Port Royal overhaul. Possible sale heats up talks
Redevelopment plans for two miles of waterfront at the Port of Port Royal, the deepest natural channel on the Eastern Seaboard, are heating up.
Proposed changes are in the works that could lead to a sale of the underutilized property to a new developer with deeper pockets.
Those changes would increase the housing density, commercial footprint and number of boat slips, and change the location of a public park.
The 317 acres of Port of Port Royal property at the end of Paris Avenue are bordered by Battery Creek to the South, Sands Beach to the east, Ribaut Road to the north and west and a former railroad bed to the north and east.
About 50 acres are available for building, with the rest falling in marshland.
“This is an incredible property,” says Whit Suber of Grey Ghost Properties, the property owner and developer.
Several restaurants, a major marina, housing, a hotel and open space for the public are envisioned for the community that promotes itself as “cool, coastal and far from ordinary.”
Re-purposing the massive concrete and metal buildings that mark the marquee property, and building anew on land with amazing views, is an opportunity to redefine the town’s historic connection to the water by returning it to a working waterfront where people could also play and live, town manager Van Willis says.
The state’s ownership of the land had kept it from being properly developed for decades, Suber says.
In 2017, Grey Ghost Properties bought the land from the state for $9 million.
Recent developments have town officials hopeful the project will finally get off the mark in 2021.
Here are 10 things to know about the status of a project that the developer and the town say could lead to millions in investment in the community of 13,000 residents.
A sale is in the works
A major ownership shakeup is in the works that’s driving tweaks to the redevelopment plans.
Dallas-based Safe Harbor Marinas, the largest owner and operator of marinas in the world, has apparently entered a contract with Grey Ghost to purchase its property, according to a proposed ordinance that modifies the planned unit development (PUD) for the waterfront properties.
The proposed PUD amendments document says that “SH Marinas, LLC,” in its due diligence, has determined that adjustments are needed to effectively develop the land.
In addition, Safe Harbor is proposing to buy the old dry stack building, where boats are stacked and stored.
The dry stack property is owned by Chris Butler, a managing partner in Grey Ghost Properties. The building, owned by Butler Marine, stores boats.
The former port terminal property known as the “concrete building” also would be part of the sale, the document says.
The concrete building is next door to the dry stack building.
With a sale pending, Suber says he can’t discuss details other than to say generally that the proposal is “extraordinarily positive.”
If the deal closes, Suber says $250 million to $300 million would be invested over five to seven years. The businesses that locate on the waterfront will create at least 250 jobs — and not just those in the hospitality and services industries but high-paying, career-based positions in the maritime industry, says Suber, who will be staying on with the project if the sale is executed.
What does the town think about a sale?
In October 2020, the town said Grey Ghost had not made enough progress in redeveloping the port.
Town officials would be pleased if the sale closes, said Willis, the town manager. Work would most likely begin within six months of closing, he said.
“I think there is a depth of resources that they offer that is exciting to the town that will potentially expedite the redevelopment of the property,” Willis said.
Are the Fish Camp, brewery part of the deal?
The Fish Camp Restaurant on 11th, owned by Hilton Head-based Coastal Carolina and Restaurant group, and a brewery, restaurant and taproom being built by Salt Marsh Brewing at the end of 11th Street on Battery Creek, are not part of the proposed sale.
What are the proposed changes in the development?
To facilitate the sale, the parties involved and the town have been discussing amendments to the planned unit development document, sometimes in closed meetings. The document was approved for the area in 2011.
The PUD guides waterfront development, laying out rules for density and the types of uses allowed.
What would happen to the dry stack building?
One proposed change involves the dry stack building, which is a sore spot with residents.
Currently, the PUD requires the developer to invest in aesthetic improvements to the big metal building, but does not attach any dollar amount. Under a proposed change, the investment in upgrades would have to be between $30,000 and $100,000, and they must be made by Dec. 21, 2022 or the building can be removed.
The dry stack was built by the State Ports Authority, without approval from the town, and it blocks a view of the water in a town that tries to keep vistas open.
“We didn’t like the look or its location,” Willis said.
Will boat storage be allowed in terminal building?
The massive 72,000-square-foot terminal building cost $3 million to build in 1959. Inside, the ceiling beams still have ash on them from the last occupant, a company that barged in cement from Colombia.
Suber wonders whether there was additional cargo being shipped with the cement.
“Coming from Medellin, Colombia? In the 1980s?” he says.
Developers are asking the town to allow boat storage in the building, which is not allowed.
Currently, the building is being used as a staging area by sailors who are training to compete in ocean racing sailing in the 2024 Olympics. Two cruise ships that had to stop operations due to COVID-19 are leasing dock space at the terminal as well.
Envisioned for the dry stack and terminal area is a regional and national marina that would include a yachting center where owners of ocean-racing boats, yachts and other vessels needing a deep harbor can stop for fuel, supplies, service and repair. The 40- to 42-foot-deep port is the perfect place for it, Suber says.
“We have an opportunity to build a marina that is unlike any other marina for hundreds of miles,” Suber said. “That traffic is out there and travels past us all the time.”
The plan is to attract that traffic to Port Royal, he says.
Housing density increased
Developers also are asking to increase the number of allowed dwelling units from 425 to 575. That would include single-family homes, townhomes and apartments. There’s also been talk of an assisted living facility.
Another change involves the waterfront bluff neighborhood and would allow garages to be located in the front of homes because they are oriented toward the water. Town code disallows garages oriented toward the street. Obviously it would not make sense to put garages facing the water, Suber said.
Cap on commercial property removed
Another proposal would remove the 250,000 square-foot cap on commercial square footage.
Willis said 130,000 square feet of existing commercially designated property already exist on the site, which would leave just 120,000 of commercial development for the redevelopment.
“Commercial properties pay the bills,” Willis said.
Plan calls for more boat slips
The number of boat slips allowed would be increased to 300, including 15 spaces that would remain open for the public’s use. The number of slips is capped at 220 now, with 10 for the public.
Property swap proposed
An exchange is proposed in which the town and Grey Ghost would swap locations for housing and a park.
Currently, 13 single-family homes are proposed on the edge of marshland north of Sands Beach Road. The Coastal Conservation League has objected to that location.
Open space that the developer is required to make part of the project is proposed off 6th Street, on the southeast side of the dry stack building.
Under the proposal, those locations would be swapped, with the marshy area becoming the open space. The 6th Street location would then be developed with housing or another use.
What will happen to the shrimp docks?
Port Royal found out last week that state lawmakers had designated $900,000 in the state budget for repairs and redevelopment of the town-run shrimp dock in Port Royal. Earlier this year, the town suspended seafood processing operations after years of financial losses. The town intends to renovate and construct a new dock, as well as a multi-purpose building that could be used for seafood processing, Willis said.
Grey Ghost Properties owns the run-down docks. Suber says improvements will cost between $1 million and $2.5 million, depending on whether the docks are repaired or replaced.
How can I comment on the plans?
A public hearing on the proposed changes is scheduled for 6:30 p.m. Wednesday at the council chambers.
This story was originally published July 6, 2021 at 4:30 AM.
