Betsy Kerrison Property Acquisition

1. Betsy Kerrison Property Acquisition Town of Kiawah Island Municipal Campus Site October 28, 2014 October 30, 2014

2. Introduction • The Town has been evaluating the acquisition of real property since January 2014 given Municipal center congestion • Investigated on and off island properties • Purchase of property on Betsy Kerrison identified as solution • Key issue is sewer availability • Resolution required five month due diligence period ended October 20th • Confidentiality Agreement cancelled on October 21st • Public information meetings scheduled October 22nd

3. Key Points to Remember • The Betsy Kerrison property has NOT been purchased • Final actions to be taken after full public disclosure • Vote to purchase property November 4th • Property closing November 7th • Property Annexation December 2nd • Town will take possession of property in January

4. Key Points to Remember • The Betsy Kerrison property is located at the entrance of Kiawah. • If we own it, the Municipal Center we build will represent the Kiawah brand; well designed, landscaped and maintained.

5. Town of Kiawah Municipal Center • The Town has grown in size and scope during the last several years • Kiawah’s Municipal Center is owned by the Town, was built in 1997 and is shared with KICA • It is significantly inadequate for current and future needs • Given limited space an expanded or new site is needed

6. Town of Kiawah Municipal Center • Town Hall has been expanded twice. • Houses Town operations, Kiawah Island Community Association and Charleston Convention and Visitors Bureau. • Addition of building services staff last year leaves no additional space for operations, service delivery, customers or meeting accommodations

7. Town of Kiawah Municipal Center • Half of the building is leased to KICA • Center was built as a low budget facility is outmoded and not fully ADA compliant • Town Hall is 13,462 sq. ft.; cost $550,000 • Limited parking for both entities, visiting public and customers • Shortage of conference rooms • Lack of an elevator inhibits second floor use for public and staff

8. Municipal Operations • Over the past several years the Town’s scope and depth of operations has grown significantly: • business licensing • code enforcement • wildlife research & management • Municipal Court • Building Services (added in 2013) • Freshfields Annexation • Potential acquisition of KIU must also be considered • These new and expanded services have served to build the Town revenues. • Current Municipal reserves total $17 million

9. Town Council 2014 Strategic Objective • Town Property Acquisition “Purchase property that will meet future Town needs which may include additional parking, existing building expansion, Town Hall annex or a new Municipal Center.”

10. Achieving Strategic Objective • Town has actively searched for property in 2014 on Island and off Island • Town Council discussed locations, price and negotiating strategy in executive session • Every executive session pertaining to property acquisition was duly noted on Council agendas • Town and owner were bound by a confidentiality agreement

11. The Freedom of Information Act • The Freedom of Information Act, 30-4-10, provides for public business to be performed in an open and public manner. • The Act, makes it possible for citizens, or their representatives, to learn and report fully the activities of their public officials. • The Act also recognizes that certain matters, to be properly handled, resolved or negotiated are exempt from disclosure and may be discussed in executive sessions. • Council utilized these exemptions to negotiate and resolve matters related to the pending contract to acquire real property.

12. FOIA Exemptions 30-4-40 • Documents of and documents incidental to proposed contractual arrangements and incidental to proposed sales or purchases of property: • these documents are exempt from disclosure until a contract is entered into or the property is sold or purchased; • contract for the sale or purchase of real estate remains exempt from disclosure until the deed is executed.

13. Expansion Options Expand Existing building Purchase new site • Marginal Site size, 3.5 acres • Insufficient Land for Parking • Currently leasing property for overflow parking • Expanding building impractical • On island property available for purchase is very costly • Property adjacent to Kiawah is available for a fraction of cost but has no public sewer service • Cannot locate Town Hall behind gate to maintain privacy provided by gates

14. New Site Location • Property available on Betsy Kerrison Parkway adjacent to Roundabout • Contiguous to Town boundaries • Site is 21 acres with 18 acres of highland • Negotiated price is $2 million Note: Property has been on the market since 2013 and we are aware of other potential buyers

15. New Site Purchase Process • Satisfy all contingencies of purchase through a due diligence period • Hold a series of Public Information Meetings • Execute a Purchase Agreement • Affirmative vote of Council to acquire property • Purchase property and record deed • Annex Property into the Town

16. New Site Evaluation Steps • Obtain acceptable Clean Phase One Environmental Study • Prepare topographical survey of site and roadway • Conduct traffic study • Identify all utility easements • Remove all encumbrances on the property • Design and locate an acceptable sewer system • Prepare DHEC application for septic system approval which requires satisfactory soil percolation test • Due diligence period took about 150 days, June – October.

17. DHEC Requirements • DHEC application required the following: • site plan and footprint of proposed/existing structures • environmental study • proposed septic system loads, size and location • proposed or existing wells; (including wells on adjoining property) • proposed building location to road and property lines • copy of deed describing boundaries or plat • The property was staked and marked with a DHEC placard as a condition of their review

18. DHEC Required Site Plan

19. Next Steps • Public Information Meetings • October 28th at 7pm • October 30th at 2pm • Council Vote on Property Purchase • November 4th at 2pm • Transaction Closing • November 7th

20. Next Steps • With property ownership, the Town will proceed with evaluation of a new Municipal Center • The public will be kept apprised and provide input • KICA has expressed interest in continuing utilization of the existing Municipal site

21. Key Points to Remember • The Betsy Kerrison property has NOT been purchased • Final actions to be taken after full public disclosure • Vote to purchase property November 4th • Property closing November 7th • Property Annexation December 2nd • Town will take possession of property in January

22. Key Points to Remember • The Betsy Kerrison property is located at the entrance of Kiawah. • If we own it, the Municipal Center we build will represent the Kiawah brand; well designed, landscaped and maintained.

23. Betsy Kerrison Property Acquisition Questions, Comments and Answers