From The Blog
KICA Board States Expectations of Developer to Comply with Captain Sam’s Spit Conveyances, Outlined in the Development Agreement
Updated Wednesday, Jan. 10, 2024
The Town of Kiawah Island’s 2013 development agreement between the town and master developer Kiawah Resort Associates, now known as Kiawah Partners, outlined planning and development for the remaining property holdings of the developer. The agreement recently expired on Dec. 4, 2023.
There were several areas in the Amended and Restated Development Agreement (ARDA) that benefit members through the community association. Many of these items, which ranged from common property conveyance to member representation, were completed in the 10 years since it was adopted.
KICA diligently pursed the conveyances outlined in the agreement, like trails, rights of way, and most recently, marshland. In November 2023, 3,325 acres of marshland was conveyed to KICA. The only outstanding expectations for land conveyances to KICA outlined in the development agreement pertained to Captain Sam’s Spit.
The anticipated conveyances included areas of highland depicted in light green and cream in Exhibit 16.2 as are then seaward of the crest of the primary oceanfront dune, and the restriction of remaining highlands not “devoted to the uses and purposes authorized” by the DA through an easement with the Kiawah Conservancy. The land would be conveyed to KICA following the easement.
On the date of the agreement’s expiration, Dec. 4, 2023, KICA’s board of directors sent a letter to Kiawah Parters’ representatives stating:
“As you are aware, the termination date of the ARDA is December 4, 2023. To date, KICA has not been provided any information concerning the Property Owner’s intent to comply with the above-referenced requirements of Section 16(f). Notably, the ARDA does not provide any prerequisite or other limitation that Captain Sams’s Spit must first be developed for the Property Owner to fulfill its requirements. It is KICA’s expectation that the obligations of Section 16(f) of the ARDA will be performed by the Property Owner on or before the Termination Date.”
The KICA board received a response from Kiawah Partners on Dec. 14, 2023.
After receiving the response, KICA’s board of directors held a special executive session meeting on Jan. 3, 2024 with consultation from the association’s lawyers to discuss the Partners’ response. Board chair Jerry McGee addressed the topic at the Jan. 8, 2024 board meeting (watch here). “We are currently working with legal counsel to determine the next steps in protecting Kiawah’s interests. We will keep our membership informed on future action taken in this matter.”
On Jan. 8, 2024, the Town of Kiawah Island also issued a letter to Kiawah Partners stating:
“The Town has reviewed KICA’s letter on this issue dated December 4, 2023 as well as KDP’s response letter dated December 14, 2023. The Town disagrees with KDP’s position concerning its Paragraph 16(f) obligations. The Town views KDP’s failure to perform as required by Paragraph 16(f) as a material breach of the ARDA.”