- The Building
- Food and Beverage
- Rental of the Facility
- Town Approval (Zoning)
- Other Questions
- Does this project effect the potential ownership of the Dunes House?
No. The Dunes House has always been owned and operated by Greenwood since they acquired Palmetto Dunes Resort in 1979. The Association has never owned the facility. In 2006, during Transition from Greenwood, Greenwood retained ownership of the Dunes House building and the adjacent roadway and parking. However, they did grant the Association a perpetual, non-exclusive easement for the purpose of ingress/egress (both vehicular and pedestrian) for parking and access to the beach.
- Will traffic in the community increase?
No. As it is today, the Dunes House parking lot will remain only accessible to property owners and resort guests.
- What will the new Dunes House/Beachfront Clubhouse include?
The first floor of the Dunes House (which includes an outdoor deck and indoor, air-conditioned space) will be an updated version of today’s commercial Dunes House – with the same casual, bathing suit and flip flop feel. The first floor will be accessible to all resort property owners and resort guests. (rental guests, owners, golfers, etc.) It will offer indoor and outdoor seating, a bar, and a commercial kitchen with an expanded menu.The Palmetto Dunes owners-only Beachfront Clubhouse will be composed of the second floor 2,900 SF indoor, air-conditioned space, and a 1,700 SF rooftop deck. These two floors will be accessible by an elevator and stairs with a private men’s and women’s bathrooms on the second floor. Both the second floor and the rooftop deck will be controlled access to allow only owners and their accompanied guests.
- Why do we need a Beachfront Clubhouse?
In the fall of 2018, owners shared their thoughts and desires for amenities that might enhance the livability, attractiveness and property values within Palmetto Dunes. The most requested amenity, by far, was a beachfront clubhouse. Given most owners purchase in Palmetto Dunes to access or enjoy the beach, we wanted to further develop the option of a beachfront amenity for the owners.
- Who will have access to the POA Beachfront Clubhouse (second floor and rooftop)?
The POA Beachfront Clubhouse is for Palmetto Dunes property owners (excluding Leamington and Shelter Cove), their accompanied guests, and officially recognized Palmetto Dunes social groups. Renters and vacationers will have access to the commercial operations on the first floor of the Dunes House, but not the second floor or rooftop deck. The second floor will be staffed by a POA concierge to control access as well as utilize technology for accessibility.
- Will Leamington property owners and their guests have access to the Dunes House?
As they do today, Leamington property owners and their guests have easement rights across the roads in Palmetto Dunes to park and visit the Dunes House. However, they will only have access to the first-floor commercial dining facility operated by the Resort. They will not have access to the POA space.
- Will Shelter Cove property owners and their guests have access to the Dunes House?
As they do today, Shelter Cove property owners and their guests have easement rights across the roads in Palmetto Dunes to park and visit the Dunes House. However, they will only have access to the first-floor commercial dining facility operated by the Resort. They will not have access to the POA space.
- Will the general public have access to the Dunes House?
As it exists today, the general public does not have access via the North Gate to park and visit the Dunes House.
- Will there being any changes to the existing first floor restaurant?
The updated Dunes House will feature an expanded menu and commercial indoor kitchen, but the resort operator is committed to maintaining the same “feel” of the current Dunes House.
- Who can use the Dunes House?
- The new second floor and rooftop Clubhouse is for Palmetto Dunes property owners (excluding Leamington and Shelter Cove), their accompanied guests, and officially-recognized Palmetto Dunes social groups.
- As commercial property owners, the Self Family will be granted six special memberships for their family.
- Renters and vacationers will have access to the commercial operations of the Dunes House on the first floor as they currently do, but not the second floor or rooftop.
- The Association will utilize both staff and technology to control access to the upper floors.
- Who owns the Dunes House/Beachfront Clubhouse?
Greenwood will maintain ownership of the land and new building and will pay all construction costs for the new building. We (the POA) will pay $170,000 per year to lease a 4,600 square foot oceanfront facility, plus the costs to upfit the facility (audio/visual technology, furniture, etc.). In addition to the annual lease payment, the Association will incur operating expenses for the POA space. Rental income from property owners and Greenwood will help offset annual operating costs
- Was the original Dunes House proposal (in 2019) for 50/50 ownership of the land and building?
The original proposal was that Greenwood would contribute the land that they already owned, and the Association would pay for construction of the new building, creating a horizontal property regime. However, Greenwood decided they did not want to relinquish their oceanfront property.
- What hours would the Beachfront Clubhouse be available?
While all details haven’t been worked out, we envision having the facility available for owners from 7am-10pm, 7 days a week (excluding days when rented for private events).
- Who will make and enforce the rules of the Beachfront Clubhouse?
The Association will adopt policies and procedures and provide enforcement for the second floor and rooftop spaces.
- Will I have to pay a fee to use the Beachfront Clubhouse?
The facility is an owner’s amenity that can be utilized by any property owner within Palmetto Dunes and their accompanied guests. However, if any owner wants to secure the space for a private event, a competitive rental rate will be charged.
- Why would I want a Beachfront Clubhouse if I don’t believe I would use it?
The community consensus called for a Beachfront Clubhouse. Given that Palmetto Dunes is an oceanfront residential resort community, the opportunity to meet, gather and enjoy the beach from the comfort of an owners-only climate-controlled facility is consistent with the reason most owners purchase here. Beyond the social aspects, a Beac
hfront Clubhouse (we’ll be the only owner’s club on Hilton Head Island with a second story view, rooftop deck and with available food and beverage service) will increase the desirability of Palmetto Dunes, enhancing property values for every owner.
- What impact does the creation of a Beachfront Clubhouse have on my assessment?
The annual lease will be paid using the ½ of 1% fee that is paid by owners when purchasing property (called the Community Enhancement Fee) within Palmetto Dunes. Rental of the facility to owners and Greenwood will o
ffset operating expenses. If any additional unanticipated expenses should remain, they will be absorbed by the operating budget– resulting in no anticipated impact to residential assessment based upon financial assumptions.
- Will the Beachfront Clubhouse ever be closed to owners?
Yes. To offset costs, there will be rental opportunities for owners, as well as Greenwood to rent the second or third floor for private events. Greenwood will be able to rent the second floor and rooftop deck for a maximum of 40 days per year. 30 Saturdays and 10 other days per year – enabling us to keep assessments down. However, the following parameters have been agreed upon
- Greenwood is limited to 4 rentals per month. Therefore, at a minimum, their rentals would be spread over at least 10 months
- Greenwood cannot rent the POA space for consecutive days. Therefore, they are limited to one weekend day per week
- Greenwood cannot rent the space during Memorial Day weekend (Friday thru Monday), Labor Day weekend (Friday thru Monday) or July 3, 4 and 5
- Owner rentals, when using the Greenwood as the caterer, are included in the limits
All rentals will be posted to an online calendar with advance notice. When the facility is rented for private events, owners will not be able to access the Clubhouse.
- Can Shelter Cove and Leamington residents access the facility?
All Palmetto Dunes Resort owners and guests will be able to access the first-floor restaurant, but the second and third floor will only be available for Palmetto Dunes property owners and their accompanied guests.
- Why doesn’t the POA just buy the Dunes House from Greenwood so we can own it?
The property is not for sale and Greenwood has stated they are not interested in selling their oceanfront property.
- Who owns Dunes House Lane?
Greenwood retained ownership of Dunes House Lane when Transition occurred between Greenwood and the Association on January 1, 2006. However, the Association was granted easement rights over and along Dunes House Lane for egress/ingress for parking and access to the beach. Along with these easement rights, the Associations has the maintenance responsibilities of Dunes House Lane. These maintenance responsibilities shall be consistent with the standards and capital reinvestment in other common areas.
- Where can we park?
Parking has always been a challenge at the Dunes House and a key consideration for any beach club. As it is today, the Dunes House parking lot will remain only accessible to property owners and resort guests. The general public will not have access past the north gate to park on Dunes House Lane.
- Can Leamington property owners and their guests park at Dunes House Lane?
As they do today, Leamington property owners and their guests have easement rights across the roads in Palmetto Dunes to park at Dunes House Lane and access the beach.
- Can Shelter Cove property owners and their guests park at Dunes House Lane?
As they do today, Shelter Cove property owners and their guests have easement rights across the roads in Palmetto Dunes to park at Dunes House Lane and access the beach.
- Can the general public park at Dunes House Lane?
As it exists today, the general public does not have access via the North Gate to park at Dunes House Lane.
- Who has the maintenance responsibilities for Dunes House Lane?
Per the Transition documents, the Association has the maintenance responsibilities for Dunes House Lane consistent with other common areas. Dunes House Lane will be redesigned and repaved to improve traffic flow, significantly improve safety and provide dedicated previous parking.
- What about additional parking?
The two tennis courts closest to the North Gate will be converted for bar-controlled, dedicated owner-only parking consisting of roughly 40 spaces. Similar to the gate access at the South Gate, each owner’s barcode would facilitate access to this owner-only parking area.Property owners will obtain a barcode in the Pass Office for this owner-only lot at no cost.The owner-only parking lot will not be leased out for private events at the Dunes House, allowing regular access only to you. However, Greenwood can exclusively use the parking area for up to ten (10) days per year for events at their golf course and/or Tennis and Pickle Ball Center. This additional parking enables owners to drive their family/guests for drop off at the Dunes House, park in the owners dedicated lot, and walk the short distance to enjoy the new Dunes House.
- Will the tennis court parking lot be for PDPOA owners only?
The lot will be controlled by a barcode that property owners will have to obtain in the Pass Office, just like obtaining a property owner decal. We envision utilizing the same bar code/technology we use at the South Gate.
- Will the tennis court parking be available to anyone else for events?
Yes. Per the lease agreement, Greenwood may use the entire parking facility up to ten (10) days per year to accommodate special events being held at the golf course or Tennis & Pickle Ball Center.
- What happens if the Dunes House project does not move forward?
The Association still has the responsibility for the maintenance and replacement of Dunes House Lane. Management received Board support for a capital investment of $525,000 in 2017 to refurbish Dunes House Lane. That project was put on hold. If the Dunes House project does not move forward, management is prepared to include a capital investment for the refurbishment of Dunes House Lane in next year’s Capital Budget. Dunes House Lane would be redesigned and repaved to improve traffic flow, improve safety, significantly improve stormwater management and enhance the pervious vs impervious ratio. The plan is to provide a best-in-class parking facility.
- Click here for Parking Lot Renderings.
- Who will own the building and land?
Ownership of the property and building will remain Greenwood. They will pay for all construction costs of the new building.
- How big is the new building?
Total Heated/Cooled square footage is 6,453 sqft.
- First floor – 3,201 sqft.
- Second floor – 2,933 sqft.
- Rooftop – 319 sqft.
- Who will be responsible for the construction costs of the new building?
Greenwood will fund the costs of the new building
- What has changed from the original conceptual plans that were shared last year?
- The entire footprint of the building and associated decks has moved 6 feet further away from the beach. The building was moved 6 feet towards the parking lot
- Changed the finish floor of the first floor from 17’-6” Above Mean Sea Level (AMSL) to 14’-0” AMSL which matches the height of the existing deck. The first floor was reduced by 3’-6”
- Finished grade is +/- 10’-0’ AMSL at the front of the building
- Overall height of the building from base grade is 44’-4”. The building was reduced in height by 5’-0” (previous building height above base grade was 49’-4”)
- The extension of the outdoor deck on the second floor was significantly reduced and changed to a wraparound deck.
- The large staircase tower on the north side was moved to the south side and eliminated some of the massing.
- What is the occupancy of the new building?
- First Floor
- Inside – 82 occupants
- Outside – 140 occupants
- Second Floor
- Inside – 107 occupants
- Deck – 33 occupants
- Third Floor
- Roof Terrace – 114 occupants
- First Floor
- What provisions are in place to make sure the property will be properly maintained by Greenwood?
Our proposed lease requires that the maintenance of the building will be to the same standards as that of other Palmetto Dunes POA properties. The interiors of the second and third floors and the decks on both floors will be our responsibilities.
- How do we pay for it?
Lease and Initial Improvements
We will pay $170,000 per year to access a 4,600 square foot oceanfront facility, plus the costs to upfit the facility (audio/visual technology, furniture, etc.). Included with the annual lease are roughly 40 dedicated, owner-only parking spaces adjacent to the North Gate. To create this parking, we will pay $260,000 to convert these two tennis courts to barcode-controlled owner-only parking. These fees will be paid from the Community Enhancement Fund which collects ½ of 1% of the purchase sale price from the buyer when a Palmetto Dunes property is purchased.
- Will the lease payment increase during the term of the lease?
Yes, per the agreement, the lease payment has a 5% escalation every 5 years.
Base Lease per year
|1 thru 5||$170,000|
|6 thru 10||$178,500|
|11 thru 15||$187,425|
|16 thru 20||$196,796|
|Total (20 years)||$3,663,605|
- How long is the initial term of the lease?
The initial term of the lease is for twenty (20) years. The Association has two (2) options to extend the term of the lease for an additional five (5) years each, for a grand total of 30 years.
- What happens after thirty (30) years?
Both parties agree in good faith to discuss extending the lease for additional terms.
- Can the Association terminate the lease?
Yes. The Association may terminate the lease after the tenth (10) year with ninety (90) days’ notice with payment of a termination fee equal to one years of the existing base lease amount.
- Can the Association sublet the POA space?
Yes, with consent from Greenwood.
- Will the Association incur any other expenses besides the annual lease payment?
In addition to the annual lease payment, we must also pay to operate our facility, including separately metered utilities, regular second floor and rooftop cleaning, insurance, our share of property taxes and building maintenance as well as a POA staff member to manage our clubhouse. These expenses are expected to be $120,000 per year, and they should be, at least partially offset by the rental of our facility to owners and Greenwood – resulting in no increased to the annual assessment. Maintenance and replacement of upfits to the facility (audio/visual technology, furniture, etc.) will be funded by the Repair and Replacement Fund.
- How will the annual lease payment be funded?
The annual lease payment of $170,000 will be funded by the Community Enhancement Fee, with no impact on the residential assessment.
- How will redevelopment of Dunes House Lane be funded?
Redevelopment of Dunes House Lane would be funded with the Repair and Replacement Fund with an estimated cost of $600,000.
- How will the conversion of the tennis courts be funded?
Conversion of the tennis courts for parking would be funded with the Community Enhancement Fee with an estimated cost of $260,000.
- How will the costs for equipment and furniture for the second floor and rooftop be funded?
Initial costs for equipment and furniture for the upper floors would be funded with the Community Enhancement Fee and is estimated to cost $150,000.
- What about additional expenses?
Any additional expenses would be absorbed by the Operating Budget, resulting in no anticipated impact to residential assessment based upon financial assumptions.
- What about food and beverage service?
- Greenwood, as the operator, is committed to maintaining the same “feel” of the current Dunes House with an expanded menu.
- Owners will have the ability to use Greenwood to cater events, as well as the choice of two other preferred caterers. The two other preferred caterers will be agreed upon by the Association and Greenwood.
- Before 5 p.m., owners, as well as any officially recognized Palmetto Dunes social groups, can bring in their own food and beverage or order from the Dunes House food and beverage service. After 5 p.m., when the Dunes House is open, all food and beverage must be purchased from the Dunes House and will be delivered by the waitstaff to the second floor and rooftop.
- There will be one evening designated per week for owners to bring in their own food and beverages. In the event the Dunes House is closed or unavailable to provide food and beverage services, owners will certainly be allowed to bring their own.
- Will the Dunes House restaurant remain the same?
There will be an expanded menu, but the resort operator is committed to maintaining the same atmosphere of the current Dunes House, providing a casual oceanfront resort style food and beverage establishment.
- Can we bring in our own food and drink?
Before 5pm owners, as well as any officially recognized Palmetto Dunes social groups, can bring in their own food and beverage or use the Dunes House food and beverage service. After 5pm all food and beverage must be purchased from the Dunes House. Food and beverage will be delivered by the Dunes House waitstaff to the second floor and rooftop deck. However, there will be one evening per week when owners can bring in their own food and beverage. In the event that the Dunes House is closed or unavailable to provide food and beverage services, owners will be allowed to bring their own.
- What catering options will a property owner have if they rent the facility for a private event.
There will be at least three approved caterers, one of which will be Palmetto Dunes Catering, to provide catering services for private events. The two other preferred caterers will be agreed upon by the Association and Greenwood.
- Who can rent the facility?
Palmetto Dunes property owners can rent the POA space for private events. Greenwood would have the ability to rent the space with some restrictions
- How often can Greenwood rent the POA space for their private events?
On an annual basis, the Greenwood can rent the POA space for up to 40 days per year which includes up to 30 Saturdays. However, the following parameters have been agreed upon:
- Greenwood is limited to 4 rentals per month. Therefore, at a minimum, their rentals would be spread over at least 10 months.
- Greenwood cannot rent the POA space for consecutive days. Therefore, they are limited to one weekend day per week.
- Greenwood cannot rent the space during Memorial Day weekend (Friday thru Monday), Labor Day weekend (Friday thru Monday) or July 3, 4 and 5
- Owner rental, when using Greenwood as a caterer, are included in the limits
- Can Greenwood use their 30 Saturdays all in the summer, leaving no Saturdays in the summer for owners to enjoy the Dunes House?
Greenwood will not be able to rent the Dunes House for more than 4 days in any month, or during the holiday weekends of Memorial Day, Labor Day, and July 3-5.
- Will there be any impact on the sea turtles with the increased amount of light?
The Association and Greenwood will be required to comply with the Town of Hilton Head’s ordinances, specifically “lights out for turtles.” The Association is involved and supportive of the Sea Turtle Patrol and Turtle Trackers and wouldn’t deviate from our mission “to protect the natural environment.”
- What improvements are being incorporated into the project with an eye towards the environment?
It’s our goal to make the property more environmentally friendly than it is today
- Building height has been lowered 3.6 feet for the initial plans, which eliminated the ground floor
- Building has been moved back 6 feet, away from the active dune system, to protect the dunes.
- The current plan significantly reduced the size of the outside second floor deck and incorporated a wraparound porch
- Property will be bike-friendly, with ample bike parking
- A dedicated electric car charging station parking spot will be available
- Redeveloping the parking lot with storm water infrastructure improvements will significantly improve the pervious/impervious ratio in the parking lot
- The parking lot will be redeveloped with pervious parking spots and landscaped islands which will provide protection to the existing tree canopy.
- What is being done for neighboring properties?
- Beach access will be provided during the construction of the project, with the existing beach access being replaced after construction.
- Landscape screening/buffering will be installed between the new Dune House and neighboring properties.
- Ingress/egress to adjacent properties will be facilitated during construction.
- Providing new controlled access gates for Moorings and Beach Villas parking lots will help alleviate a problem that exists today and limit unauthorized parking within their villa complexes. Unlike prior practice, despite the fact that this is exclusively for the benefit of the Moorings and Beach Villa owners, the Association is absorbing the cost of the purchasing and installation of these gates.
- Is the property’s rezoning up to the Town of Hilton Head or the Board?
The Town must approve any rezoning. Rezoning is not up to the Associations Board. Greenwood would submit an application to the Town of Hilton Head to request the additional density.
- Who will be submitting the application to the Town of Hilton Head for the zoning request?
Greenwood, the owner of the land and building located at Dunes House Lane, would be the applicant seeking the zoning approval.
- What would happen to the Dunes House Covenants?
Assuming the zoning request is supported by the Town Council, Greenwood would amend the Dunes House Covenants for the additional density and use with the consent of the Association.
- Is the membership entitled to vote on the amendment to the Dunes House Covenants?
No. The Association, represented by the Palmetto Dunes Board of Directors would consent to the amendment to the Dunes House Covenants.
- What impact does this project have on 7 Lee Shore?
This project does not impact 7 Lee Shore. At this time, the Board has not made a decision on the development of the 7 Lee Shore property.
- Why doesn’t the Association purchase the PD Club on Carnoustie Road for an owner’s clubhouse?
The property is not for sale. Over the years the Association has explored this possibility however, Greenwood has stated they are not interested in selling the property.