Here’s why the dock on Daufuskie Island finds itself in the middle of a growing controversy

The Beaufort County Council’s vote to condemn the dock on Daufuskie Island and preserve ferry service has delayed a developer’s plans to purchase the abandoned Melrose Resort.

With no bridge or connecting causeway, taking the publicly funded Daufuskie Island Ferry is the only way to get on and off the island. To assure access to the island, the council voted to condemn the dock and make it public.

The council identified two locations with the intent of making them permanent public embarkments for the Daufuskie Island Ferry. One is located near the Cross Island Boat Landing on Hilton Head and the other is the dock at Melrose Landing on Daufuskie. During the June 27 County Council meeting, the council approved a motion to condemn both locations, which would put them in the public domain.

That’s where the trouble began.

Regenerative developer Whitestone Resources began working last fall to prepare the resort for sale to its parent company, Whitestone Holdings LLC. The purchase was set to close June 30, but the county’s motion to condemn the dock just days earlier caused a delay.

Without the dock, it would be hard to sell the resort, according to Whitestone.

“You can imagine that the most vital piece of property that is involved in the resort is that connection on that island,” said Tim Pitcher, president of Whitestone Resources.

At the July 11 council meeting, the council voted to postpone the second reading after island residents showed up to voice their concerns over the condemnation. The council hopes to find a solution that can satisfy all parties.

“The County’s current goal is to provide the citizens and visitors of Beaufort County with transportation to Daufuskie Island now and in the future,” Beaufort County spokesman Chris Ophardt said in a statement. “The County recognizes transportation is not the only concern of the Daufuskie Island residents, and it will continue to address other desirable services. The County will continue to seek Daufuskie Island residents’ and local businesses’ input throughout the process.”

Improving parking and adding restrooms and covered areas for guest waiting for the ferry are things the county hopes to take on with public ownership of the dock. Improving parking and adding bathrooms are also part of the plans Whitestone has for the dock. While they don’t have specific plans for a covered dock, Whitestone’s representatives do plan to refurbish the dock, so it’s a possibility Pitcher said.

The Melrose Resort, which was developed in the 1980s, has been abandoned on Daufuskie Island for over a decade after the private owners ran into financial problems. Today, there are about 400 people living on Daufuskie.

An Island divided

For businesses that operate out of the Melrose Marina, Whitestone’s eventual management of the marina comes with some concerns.

The businesses are afraid Whitestone will substantially raise the price it charges businesses to have access to the dock, according to Pat McClain owner of Daufuskie Life, a golf cart rental company. Businesses that operate out of the marina lease the space they use and rely on the ferry to bring customers and employees to the island.

Originally space at the marina was leased out by Haig Point, but the agreements were not documented.

The leases offered by Whitestone would be more expensive, but that’s because they would be at market rate, Pitcher said.

“I’m not surprised that a business owner would not want to pay more than they have had to pay in the past, for any lease, and each one of them have to make their own decision, said Pitcher.

Pitcher would not discuss figures, saying the rates are still under negotiation.

Having the business pay market rate is essential for the long-term success of the marina, Pitcher said.

While he was never presented with an official offer, McCain said the rate that Whitestone was asking for rent was over 10 times his current rate. McClain said he “could live with it,” he would have to raise his prices to offset the loss of revenue.

Business owners said the current lease rates run about $300 to $500 a month.

Eventually, Whitestone began offering revenue sharing as an alternative.

Another business owner who asked to remain anonymous told the Island Packet that the revenue sharing rate was anywhere from 20% to 30% of their monthly revenue. Businesses that make more money would pay more money.

Another concern McClain had with the potential lease from Whitestone is that it’s month-to-month. McClain feels that would provide less security than an annual lease.

“If you’re in a month-to-month contract, they can raise your rate to whatever they want to raise it to,” McClain said.

Not everyone on Daufuskie is unhappy. The majority of people living within the Melrose Resort area proper support Whitestone and the purchasing of the resort, according to Bill Werkheiser, president of the Melrose Cottage Association.

“I don’t think that this is an issue over the developer and development — that should happen,” said Werkheiser. “It’s an issue over, you know, an agreement being worked out to not take something away that is so vital to this business operating.”

A revitalized resort means higher property values for those living near and around it. Just the speculation of a buyer wanting to come in and buy the resort has raised property values, according to Werkhieser, who doesn’t live on the island but owns three properties there.

The second reading of the condemnation process will be at the next County Council meeting Aug 8.