Port Royal and Safe Harbor make peace on waterfront development fight. What’s next?
The unspoken mood in the room at the Port Royal Town Council meeting Wednesday was “let’s finally get this going.”
Redevelopment of Port Royal’s prized waterfront — sometimes called its front porch — is now only months away from starting following decades of contention and failed negotiations.
The council approved a far-reaching settlement with developer Safe Harbor Marinas to resolve a litany of disputes and details and finally get the massive project moving forward.
With the agreement in place and approved Wednesday by the Town Council and Friday by Safe Harbor — the long-awaited beautification of two miles of waterfront at the Port of Port Royal can finally begin, town and Safe Harbor officials said.
Home ownership vs. rental conflict solved
Safe Harbor is now agreeing that at least 85% of the houses will be for-sale. All of the units would have been rentals under the initial plan, which caused an outcry from local residents. This was a key concession in the deal, which came after months of negotiations.
Safe Harbor also agreed to grant the town a critical easement needed to expand Spanish Moss Trail through the development. And a land swap, also included in the agreement, will provide additional properties to the town. On one of those locations, the town is planning to build a new shrimp dock. At another, the existing boardwalk will be extended through the marsh.
The settlement comes more than three years after Safe Harbor bought the shipping port once owned by the South Carolina Ports Authority but Port Royal residents have been waiting more than 20 years to see the town’s scenic waterfront properly developed ever since the state closed its shipping terminal in 2004.
City Councilman Jerry Ashmore characterized the settlement with Safe Harbor as “historic” with the land abutting Battery Creek months away from being transformed into a 140-slip marina and build out known as the planned unit development.
“It’s been a long-time coming,” said Councilman Darryl Owens, who described the settlement as a “great compromise” that will protect the town’s culture and natural environment.
Councilman Jorge Guerrero credited residents for speaking out, noting that the sight of large cranes on the waterfront prompted them to begin lobbying for changes in the development plans. “Your tenacity is what got us to this point,” Guerrero said.
Safe Harbor purchased the land for $20 million in 2021 but it wasn’t long before disputes arose over the proposed plan to build rental housing, a trail extension through its land and other issues like the construction of large docks on the site for use at other Safe Harbor locations. Little actual construction has occurred other then site clearing and the demolition of the former Ports Authority terminal as the two sides ended up in court followed by mediation that eventually led to the settlement.
How the agreement was forged
“It was contentious at times but we worked it out,” Mayor Kevin Phillips said.
Phillips apologized to the public for not being more forthcoming earlier but said confidential negotiations limited what could be said publicly. The efforts included a 9-hour mediation session in Columbia in November that Phillips said set the framework for the agreement that the Town Council unanimously approved Wednesday.
“It’s huge,” Phillips said after the meeting, referring to the significance of the deal. “It starts the process of really working together on the development on this Port Royal property.”
Ron Gift, Safe Harbor’s regional vice president, said in a statement that “we’re grateful to be part of the Port Royal community.”
Here’s 10 highlights of the agreement:
1. Housing plans: Fewer rentals
The agreement settles a dispute over the type of housing that will be constructed in areas overlooking Battery Creek.
In August 2023, Charleston-based The Beach Co., working with Safe Harbor, outlined a plan to build 200 town houses and 30 single-family homes. All of the units would be “build to rent,” it said, which immediately sparked opposition. The town envisioned construction of owner-occupied single-family houses.
In the settlement agreement, Safe Harbor has agreed to limit rentals to 15% of the total residential units. Multi-level apartments and condominiums are prohibited.
Safe Harbor officials have indicated to the town that they eventually plan to sell the real estate part of the development, Phillip noted.
2. Spanish Moss Trail: Easement approved
Another dispute that the agreement settles involves the Spanish Moss Trail.
In February, 2024, the Town Council was prepared to approve an easement with Safe Harbor that would allow about a quarter of a mile of Spanish Moss Trail to cross Safe Harbor land from Ribaut Road to Ritter Circle. But the deal fell apart.
Under the agreement, Safe Harbor will donate a 16-foot easement that will allow the trail work to proceed.
3. Land for shrimp dock pinned down
The town had owned one of the few publicly owned commercial fishing docks remaining in South Carolina. But it tore down the old rickety dock in 2023 and also removed dilapidated shrimp boats tied to it. That followed a 2021 vote by the Town Council to suspend shrimp processing after spending hundreds of thousands in public money since 2006 in an attempt to preserve the local cultural heritage of the industry.
A land swap is included in the agreement will give land known as Lot G, located between the Fishcamp on 11th Street restaurant and Shellring Ale Works, to the town where new shrimp docks and a new seafood processing facility are planned. An area where residents will be able to view the shrimpers as they unload their catch will be part of that development, Guerrero noted. A dock that the community can use also are part of these plans.
4. Boardwalk will be extended
In the land swap, the town will also receive property known as the “beer garden,” and adjacent areas in the marsh. Having the beer garden property and “strips” of land through the marsh will allow the town to extend its existing boardwalk along Battery Creek to create a loop, Phillips said. “You’ll be able to go through the marsh eventually,” he said.
In return, Safe Harbor received five lots from the town behind the Shed building. The town also waived Safe Harbor’s $150,000 commitment toward building the seafood facility.
5. No more dock construction for other projects
The town took Safe Harbor to court last March arguing it was breaking town rules by building large floating docks at the property. The town alleged the docks were not being built for the local marina construction but were being shipped to other locations. Safe Harbor responded with a lawsuit of its own that disagreed with the town’s stance.
The agreement calls for adding a revised “clarifying” definition of “light industrial” to the development agreement that excludes dock manufacturing.
6. 18 months to build the marina
The town will issue a temporary use permit to Safe Harbor for up to 18 months to build the docks for the Port Royal marina.
7. A deadline to submit a master plan
The settlement sets a deadline for Safe Harbor to deliver a “reasonably comprehensive master plan” to the town that includes a timelines for development of the marina. That deadline is six months.
8. Town has 3 months to act
The town now has three months to amend the current development agreement and planned unit development to included the settlement terms.
When the development agreement is amended, both sides will dismiss all the legal claims. “We are basically letting all that go,” Phillips said.
9. Marina is halfway between New York and South Florida
Safe Harbor has received permits from both the South Carolina Department of Health and Environmental Control and the U.S. Army Corps of Engineers for the marina, Phillips said. The company has said previously that it was attracted to Port Royal because no bridges will restrict the coming and going of boats, and by the depth of Port Royal Sound, which can reach 60 feet deep, making it the deepest natural harbor south of Chesapeake Bay. It’s location halfway between New York and Fort Lauderdale also will make it a convenient stopping point for coastal traffic, Phillips said.
“It’s going to be jewel to them,” Phillips said.
The agreement will allow Safe Harbor to have up to eight portable storage containers known as Conex boxes on the grounds. Conex boxes are a type of cargo container used to store supplies. These boxes will be used by the large sail boats that are expected to use the marina, Phillips said. The original PUD did not allow them.
10. Both sides agree to keep talking
After enduring months of communication breakdowns, officials with the town and Safe Harbor agree in the settlement to meet every three months to discuss status of the development. The joint meetings will “ensure open lines of communication continue,” Safe Harbor Marinas’ Gift said.
This story was originally published February 13, 2025 at 9:46 AM.
