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

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 20 th Confidentiality Agreement cancelled on October 21 st Public information meetings scheduled October 22 nd

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 4 th ▫Property closing November 7 th ▫Property Annexation December 2 nd Town will take possession of property in January

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.

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

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

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

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

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.”

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

The Freedom of Information Act The Freedom of Information Act, , 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.

FOIA Exemptions 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.

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

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

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

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.

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

DHEC Required Site Plan

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

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

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 4 th ▫Property closing November 7 th ▫Property Annexation December 2 nd Town will take possession of property in January

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.

Betsy Kerrison Property Acquisition Questions, Comments and Answers