Property owner sues City of Beaufort, development company over downtown projects
A fight among city officials, residents and developers over the future of two blocks in Beaufort’s historic downtown is now in the courts.
A Beaufort property owner and developer filed a lawsuit Monday accusing the City of Beaufort, developer 303 Associates LLC, and developer Beaufort Inn, LLC, of not following the city’s zoning requirements when approving several large projects in Beaufort’s downtown.
In the lawsuit, West Street Farms LLC and Mix Farms LLC — two limited liability companies owned by Graham Trask, a real estate investor and developer who lives in Geneva, Switzerland — claim that the developers have not received special exception permits from Beaufort’s Zoning Board of Appeals, a requirement under city code for large buildings in the historic district.
At the center of the lawsuit are three large-scale developments proposed in Beaufort’s downtown — a hotel at the corner of Scott and Port Republic streets; a three-story parking garage on the block bordered by Charles, Craven and West streets; and, a three-story apartment complex on Charles Street.
Critics, including Trask, previously said the projects are piecemeal proposals that will significantly alter Beaufort’s downtown. They worry about the size and scale of the developments and said city officials haven’t done enough to prepare citizens for the changes. Developer Dick Stewart of 303 Associates, however, said some of the concerns about the projects are misplaced and due to a fear of change.
Stewart and 303 Associates held a virtual information session on March 24 to correct misinformation Stewart claims has been spread about the projects, alluding to a blistering letter he penned to the Historic Beaufort Foundation. The letter claimed the group has “embarked on a campaign of misinformation and deceit” about the projects.
The developments, Stewart said, will improve the quality of downtown Beaufort.
Trask’s lawsuit asks a judge to void all previous approvals for the projects and asks for an order prohibiting the city and developers from taking any action on the properties until the zoning board of appeals grants special exception permits.
The lawsuit, which claims that Trask’s business stake in downtown Beaufort will be harmed if the developments are allowed to move forward (he owns properties adjacent to the proposed projects), also asks for the city to pay his attorneys’ fees.
Called Tuesday, Beaufort Mayor Stephen Murray said the city had not been served with the suit but that he was “disappointed.”
“I believe all city codes and processes have been followed,” he said. “This seems like a waste of taxpayer dollars, but the courts will decide, and the city will abide by whatever decision the court makes.”
Dick Stewart, of 303 Associates, called the lawsuit’s claims “frivolous and not based in fact.”
“We’re confident the court will agree,” he said Tuesday.
Lawsuit accuses city of not following code
Trask, a Beaufort native who works as a principal investor and developer of real estate in Geneva, Switzerland, owns four properties along West Street and one property on Scott Street in downtown Beaufort through limited liability companies West Street Farms LLC and Mix Farms LLC.
In the lawsuit, Trask claims that three developments proposed by Stewart’s 303 Associates were granted varying levels of approval by the City of Beaufort without special exception permits for “Large Footprint Buildings.”
The focus of the lawsuit appears to be whether the three developments proposed by 303 Associates are governed by the city’s zoning ordinances, which were adopted on June 27, 2017, and updated on July 10, 2018.
Large footprint buildings, as defined in Beaufort’s city code, have a footprint greater than 20,000 square feet and are “often used by big-box, national retailers.” Large footprint buildings planned in Beaufort’s historic district are permitted by special exception only, the code says.
Special exceptions, according to the city code, are granted by the city’s Zoning Board of Appeals.
Called Tuesday, Trask said he filed the suit because downtown Beaufort will be “irreparably altered by buildings of this size.”
He said he wants to hold the City of Beaufort’s staff and council “accountable for following their rules” and “it appears they haven’t followed the rules that are set out in the city code.”
The projects 303 Associates proposed for Beaufort’s downtown “need to go back to square one,” he said.
Asked how the developments would hurt his business, Graham said “buildings of this size are inappropriate downtown and, as the lawsuit stated, my business interests, long term, will be harmed.”
He said he and his wife plan to move back to the United States and split time between Beaufort, his hometown, and New York, his wife’s.
“Such over-sized buildings will mar the Beaufort landscape and basically turn Beaufort from being a charming city into being a tourist juggernaut,” he said. “I’m not interested in owning real estate in a town that’s basically being used as somebody’s convention center.”
Mayor Murray said the city council would discuss the lawsuit and potential next steps in a future executive session.
This story was originally published April 6, 2021 at 2:40 PM.
