Petition in Opposition to Town of Seabrook Short-Term Rental Ordinance (2020-14)

 

In a publication entitled History of the Seabrook Island Club (“SIC”) which is distributed to incoming members of SIC, the governing entities are stated to be the Town of Seabrook Island, SIC and SIPOA. On November 15, 2004, the Island One concept was adopted by SIPOA and SIC with the stated purpose “to bring the entire island together as a single, united community, with a more common sense of purpose.” Page 81. Island One provided that all future purchasers of Seabrook Island property would be required to become members of SIC.

 

The Short-Term Rental Ordinance 2020-14 (“Seabrook STR”) amends the Development Standards Ordinance for the Town of Seabrook and establishes requirements and restrictions applicable to short-term rental units which are defined as residential dwellings rented or leased as an overnight accommodation for periods of less than thirty (30) consecutive days at any time during a calendar year.

 

The Seabrook STR is a comprehensive regulatory scheme intended to apply only to short-term occupancies, and therefore does not apply to long-term rentals or Seabrook property owners generally.  According to Town Council Member Jeri Finke, the impetus for this ordinance was “concerns of property owners about some rental properties, and their frustration over continually being bounced back and forth between the Town and SIPOA….”  November 6, 2020 email from Jeri Finke to Nancy Buck of Coastal Getaways. Mayor John Gregg appointed a Short-Term Rental Ad Hoc Committee in January of 2020 whose members are Council Members Jeri Finke and Pat Fox. A 1st reading of the Seabrook STR occurred on October 27, 2020. A virtual public hearing and 2d reading of this ordinance is scheduled to occur on November 17, 2020.

 

Although certain property management companies, COVAR, SIPOA and SIC were advised prior to the 1st reading on October 27, 2020 that an ordinance regulating short-term rentals was being drafted, and publication of the public hearing was made on November 3, 2020 in the Post & Courier, “prior to the approval for first reading at the Town Council meeting of 27 October, proposed Ordinance No. 2020-14 was not disseminated to the public.” October 31, 2020 email from Mayor John Gregg to Doyle George. No articles were published in Tidelines, The Seabrooker or the Town’s website that would have alerted resident and non-resident Seabrook Island property owners, including those who rent dwellings on a short-term basis, that the Seabrook STR was intended to be adopted as early as November 17, 2020.

 

If the objective as stated by Island One is to “bring the entire island together as a single, united community,” the rushed introduction by the Town of Seabrook of the Seabrook STR has frustrated a significant number of Seabrook Island property owners, by not mailing notification of this zoning proceeding to interested property owners as required by SC Code Section 6-29-760 which sets out the notice requirements for enactment or amendment of a municipal zoning regulation.

 

Compounding the lack of adequate notice by the Town is the decision by SIC to increase the annual, weekly and daily amenity fees paid by Community Club Members or visitors occupying rental property beginning on January 1, 2021.

 

The public hearing and Town Council meeting on November 17, 2020 will be conducted as video conferences of members of Town Council only. The public may submit written comments in advance of the public hearing using the public comment facility of the Town’s website (“meetings” tab), and these comments will be accepted until the “cut off” time of the public comment period at 12:00PM on November 17th. While Town Council members consider all public comments received by this date and time, there may be no express response by Council members to some public comments according to the October 31,2020 email by Mayor John Gregg to Doyle George.

 

The Seabrook STR establishes minimum requirements for the operation of short-term rental units within the Town, including (1) maximum occupancy limits based on the amount of finished living area and number of code-compliant bedrooms in a unit, (2) compliance with South Carolina Retail License requirements and payment of state and local sales taxes and accommodations taxes, (3) off-street and on-street parking by tenants on Seabrook Island Development (“SID”) controlled streets, (4) advertising and information requirements for short-term rental units, (5) inspections of units on two (2) hours’ notice, and (6) mandatory smoke alarm, fire extinguisher and carbon monoxide detectors. In order to implement this regulatory scheme, the Town requires a property owner to obtain an annual short-term rental permit, at an annual cost of $250, by submitting a rental permit application accompanied by a non-refundable application fee (cost not yet determined in the Town’s revised Fee Schedule).  If there are violations of the Seabrook STR, a rental permit may be suspended for a period of 60 days for 3 or more violations within a preceding 12 month period, or revoked for a 12 month period if the rental permit has been suspended 2 or more times in any 24 month period.  The list of violations is extensive under Section 5.20.30 (b)(1)(q)(4)(a).

 

Most importantly, under subparagraph (4)(a)(1) of Section 5.20.30 (b)(1)(q) which defines “Violations,” it is an offense to “[o]perate a short-term rental unit without complying with the conditions and requirements of this section and any other provision of the Town Code.” The penalty for noncompliance under subparagraph (4)(b) is a misdemeanor. This broad language includes parking violations, failure to comply with the maximum occupancy limits, safety requirements, obtaining a South Carolina Retail License, and payment of state and local taxes such as State and local sales taxes, State accommodations tax and Charleston County accommodations tax, in addition to all of the other compliance requirements set out in subparagraphs (4)(a)(2 through10). Under subparagraphs (4)(c) and (d), a property owner is not relieved from personal liability “whether such noncompliance was committed by the property owner’s designated agent, local contact, renter or guest of the short-term rental unit.” A designated agent is jointly and severally liable for noncompliance which occurs at a short-term rental unit managed by the agent within the Town.

 

“b. Penalties. Any person violating any provision of this section shall be guilty of a misdemeanor and subject to the enforcement provisions of Article 18. Punishment for any violation shall not relieve the offender of any liability for delinquent taxes, penalties, and any other costs.”

 

Please note that a single violation will result in the property owner and property manager being accused of a misdemeanor which is a criminal offense.

 

Implementation of the Seabrook STR in its current form will result in a withdrawal of short-term rental dwellings from the rental market, and a commensurate loss of income for SIC, SIPOA and the Town. Setting aside the fact that portions of this ordinance may be unenforceable, it is clear that the central purpose of the ordinance is to make it more difficult for property owners to rent to short-term tenants. This is the life blood of the Seabrook community. Without homes available for short-term tenants, fewer families will visit Seabrook and eventually buy homes, lowering the commissions for the club’s real estate brokerage, Seabrook Island Realty. There will be a decrease in revenue from amenity fees, activity fees for golf, tennis and equestrian and food and beverage sales at SIC. 

 

We the undersigned are against this ordinance as currently written.  We respectfully request the Town of Seabrook to suspend the virtual public hearing and second reading of the Seabrook STR scheduled for November 17th until the ordinance has been revised and properly disseminated to both full time and non-resident Seabrook Island property owners for their comments, and specifically approved by the SIC and SIPOA under the Island One concept that has governed Seabrook Island since its adoption in 2004.