‘Potential litigation’ clouds plans for former Wild Wing property on Hilton Head
At Tuesday’s Town Council meeting, Ward 4 Council Member Tamara Becker openly questioned the council’s use of closed-door discussions, calling the decision to talk about two agenda items in executive session “inappropriate.”
Becker criticized Hilton Head Mayor Alan Perry, who sets the agenda for the town council, for not answering her questions about why two agenda items warranted private discussion.
One of the matters in question are plans for the former Wild Wing Cafe, which the town purchased for $4 million in October 2023 with plans to use it as beach parking. In secret, the council have been discussing “legal questions” about “potential litigation” that could arise from their plans for the property, town officials said.
The second item relates to “personnel matters,” according to the agenda. Becker pointed out the town manager and the town attorney are the council’s only two employees.
Here’s what we know about the issues, and why the town opted to discuss them in private.
Circle Center discussions
Without divulging what was discussed behind closed doors, Ward 5 Council Member Steve Alfred shared some insights into the Circle Center deal.
The Town of Hilton Head Island originally purchased the former Wild Wing Cafe Building in October 2023 for $4 million.
Several ideas for the property have been publicly discussed, Alfred said.
Originally, the plans were to demolish the building and turn it into a public parking lot because of its proximity to Coligny Beach area Lowcountry Celebration Park. However, town officials are also considering using the building to house offices for Shore Beach Service, Community Code Enforcement and Sea Turtle Patrol HHI, all of which help keep Hilton Head beaches clean and safe.
Alfred said a “real estate matter” has come up that relates to the adjacent Circle Center shopping center.
“There is a potential real estate transaction involving the shopping center and the use of the parking lot,” he said. “And the town has had to take certain steps and have to deal with the use of the parking area.”
The town erected a sign on the property last year indicating that the public could use the parking spaces that already existed on the Wild Wing lot.
In 1992, the previous owner of Circle Center placed restrictions on the property to ensure, in part, that any development does not compete with the adjacent shopping center, according to documents reviewed by The Island Packet. That includes not allowing a bowling alley, bingo parlor or “non-service oriented business of professional offices.”
Because of this, the town is negotiating with the owners of Circle Center to ensure they can build government facilities on that property and avoid litigation, according to Alfred.
At a Feb. 10 meeting, the town council met behind closed doors to discuss the matter. After coming out of executive session, they voted 7-0 to approve a new agreement, which made it clear that they could use the property for municipal uses, among other items.
According to Perry, “legal questions” arose after that vote that needed to be addressed. He declined to speak about those questions in detail.
Speaking in vague terms, Alfred provided some insight into what’s going on.
“There are entities in the community that have various reactions to this proposal, and some who don’t agree with where the town might be heading right now and have suggested significant repercussions if the town goes ahead with it, including potential litigation,” Alfred said.
The property is tied to what is called “cross easements,” which means customers of the shopping center could use Wild Wing parking spaces and customers of the Wild Wing Cafe could use Circle Center spaces.
“The town has been asked to modify the cross easements in favor of the shopping center,” Alfred said.
Signs posted in the Circle Center Plaza tell visitors they can park in the plaza lot for a fee. Meanwhile, nearby town-owned public parking lots near Coligny Beach are all free to use.
Perry explained in general terms why the council typically discusses real estate matters behind closed doors.
The town would risk getting dragged into a “bidding war” with other interested parties if real estate deals and contract negotiations were discussed publicly, he said.
Other parties may try to negotiate a better deal from the sellers, or “try to get it before the town does and then turn around and sell it at a higher price,” Perry said.
What about the “personnel matters”?
One of the items on the closed-session agenda relates to a “personnel matter.”
“We only have two employees: Our town manager and our town attorney,” Becker said during her speech.
Alfred declined to confirm whether the personnel matter relates to either of these town officials.
Town Attorney Curtis Coltrane announced his retirement last month, and the council is searching for his replacement. They’ve expanded their search to attorneys with practices in Beaufort County, loosening a decades-old rule requiring the town attorney to be someone with a practice on Hilton Head.
Alfred defended the practice of discussing personnel matters behind closed doors.
“You don’t discuss somebody’s problems in public,” Alfred said. “Particularly if there’s good opportunities to remedy whatever the deficiencies of a particular employee are.”
What does the law say about secret meetings?
Under the South Carolina Freedom of Information Act, public bodies can use executive session for “discussion of employment, appointment, compensation, promotion, demotion, discipline or release of an employee, or an appointment to a public body.”
Certain legal matters, such as real estate deals, are also allowed to be discussed privately.
Specifically, the law allows public bodies to use executive session for “discussion of negotiations incident to proposed contractual arrangements, discussions of a proposed sale or purchase or property, receipt of legal advice, settlement of legal claims or discussions of the public agency’s position in adversary situations, discussion about development of security personnel or devices.”
At the meeting, Becker made a motion to bring those items forth for public discussion, but she did not receive a second from another member of the council.
The remaining six members of the council believe the items are “entirely appropriate” for executive session, Alfred said. The council is “very careful” to make sure they’re following the rules, he said.
