DUNES HOUSE UPDATE
On behalf of the Board of Directors of the Palmetto Dunes Property Owners Association (POA) and Greenwood Communities and Resorts (Greenwood), please allow this to serve as an update on the status of the Dunes House Project. Based on several factors, the POA and Greenwood have mutually agreed to stop pursuing the project. The Dunes House will continue operating as a Greenwood-owned resort amenity serving property owners and guests as it does today.
Three years ago, the POA approached Greenwood with the idea of partnering together in providing an oceanfront amenity within the Resort for POA property owners. One of the primary goals of a beachfront amenity was to provide a gathering place for our community to become closer. While an amenity of this type was not a priority for Greenwood, the relationship with the POA was a priority. So began a series of meetings and conversations exploring how to make this project mutually beneficial. Countless hours were invested by members of the POA Board, POA Management and Greenwood, along with significant community input on this collaborative effort.
In late 2020, after a hiatus due to COVID, we agreed upon a conceptual framework, which included a planned standard Landlord–Tenant agreement. The parties agreed to the general terms outlined in a Memorandum of Understanding (MOU) early in 2021 and envisioned a workable long-term lease with the necessary approvals from various stakeholders, including Greenwood, the POA and the Town of Hilton Head.
We have seen unprecedented changes around the world and certainly at home since we began this journey. The fundamental economic terms that helped underwrite the original MOU and thus directed the lease no longer reflect the reality of today. We now face rampant inflation, rising construction costs and a host of other realities we did not just 18 months ago. Additionally, there was a desire for a much longer partnership in the project from the POA, as well as owners both for and against the project.
The relationship between the POA Board and Greenwood leadership has tremendously benefitted from these collective efforts over the last few years. We jointly recognize that cooperation can and must continue, and we recommit to prioritizing communication and interaction throughout all levels of each organization. Although this opportunity did not materialize, both organizations will continue to work together for the betterment of the entire residential resort community.