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ISLE OF PALMS — A bumper crop of yard signs has sprouted across this barrier island as voters prepare for a referendum Nov. 7 that could limit short-term rental licenses.

It's the latest skirmish in a much broader fight over the future of these sorts of vacation usages that's been playing out across South Carolina.

“If nothing else, we are keeping the sign business afloat," said Mayor Phillip Pounds.

Isle of Palms is among the communities on the frontlines — all places where high demand from vacationers fuels the short-term rental business. Charleston, Mount Pleasant, Folly Beach and Beaufort limit such rentals; Sullivan's Island prohibits them; Myrtle Beach doesn't allow new ones in residential neighborhoods.

The Isle of Palms referendum calls for imposing a 1,600 cap on short-term rental licenses for investors and second-home owners. There would continue to be no cap for homes that are the owners' primary residence.

It's about preserving the island's quality of life, say supporters. More than 30 percent of the city's registered voters signed a petition to get the referendum on the ballot.

“We have a growing number of short-term rental licenses in residential communities," said Randy Bell, a former councilman working with pro-referendum group Preserve Isle of Palms Now. "We are trying to maintain the one-third, one-third, one-third split between full-time residents, second homes and rental properties."

Opponents say it's really about property rights and property values. An investment property or second home could be harder to sell, and worth less, if there's no certainty it could be used for short-term rentals.

“What are we trying to solve?" said Hugh Swingle, an island resident whose family business is Palm Blvd Vacation Rentals. "We just don’t see that there’s an actual problem.”

The city had issued 1,625 licenses to property owners who are not full-time residents as of early October, and if the referendum were to pass, no new ones would be available until the number drops below 1,600.

"Obviously, we don't think it's good," said Ryan Buckhannon, president of the Isle of Palms Chamber of Commerce. He's a former councilman who owns an investment property licensed for short-term rentals.

Supporters and detractors of the referendum have set up websites, put out yard signs and sent mailings.

Isle of Palms United opposes the cap and claims on its website, iopunited.com, that taxes "have to" go up and property values will go down if the referendum were to pass. That group and others claim property values plunged 25 to 30 percent on Folly Beach after a February voter referendum capped short-term licenses there at 800.

Charleston Trident Association of Realtors data gives reason to question such claims. According to CTAR data, the median price of a house sold on Folly Beach in 2023 through September was down 14.9 percent, but the median price of a condo or townhouse sold there was up 28.2 percent.

“There’s no basis for the claim that property values will plummet by 40 percent," said Bell.

Swingle, who is affiliated with Isle of Palms United, said a cap could be a big problem for people who want to sell a property in the years ahead.

“If there were a cap in place, and you own one of those tiny condos and you went to sell it, you could have a really hard time without a (short-term rental) license," he said.

Swingle expects the vote to be close.

Preserve Isle of Palms Now supports the referendum, which the group says on preserveiop.org is about keeping the island a great place to live and preserving its residential nature by not allowing unlimited short-term rentals.

"IOP residents are either already experiencing or can foresee future problems with water and sewer capacity, traffic & parking congestion, environmental impacts, and the availability of long-term rental housing," the group's website says.

The Palm Republic, an organization created by former Isle of Palms Mayor Jimmy Carroll and current Councilman Blair Hahn, has also created programming opposing the referendum. Hahn even alleged in a YouTube video that referendum supporters have talked about driving down property values in order to get deals on real estate.

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The island has long been known as a place to rent a house or condo at the beach, or to have a second home that could be rented out for much of the year.

Full-time residents own about a third of the homes, and they can rent out those homes for up to 72 days each year if they have a short-term rental license. As of early October, 184 owner-occupied homes on Isle of Palms had short-term rental licenses.

“It’s a vacation spot, and has always been a rental community, to some extent," said Pounds, the mayor, who declined to say how he will vote. "We have 1,400 condos, give or take."

That's a lot on an island with about 4,400 residents. Most of those condos are in Wild Dunes or former hotels in the commercial area along the beachfront, and most are for rent. Many single-family homes across the island are also licensed for short-term renters.

While full-time residents are the minority of property owners on the island, they are the only people who can vote.

The referendum is on the ballot because of a petition signed by 1,173 of the city's 3,740 registered voters. That petition put a short-term rental ordinance before City Council, and after the council declined to pass that ordinance in July, it became a ballot referendum.

If the referendum were to pass, the ordinance would take effect.

The Isle of Palms yes/no referendum question is: "Shall the City of Isle of Palms limit the investment short term rental business licenses to a maximum of 1,600?"

Across the marsh in neighboring Mount Pleasant, which has more than 94,000 residents, just 400 short-term rental permits are allowed.

Supporters of short-term rentals hope state lawmakers will act to prohibit and invalidate any local restrictions in 2024. A measure aimed at limiting local governments' ability to restrain short-term rentals failed earlier this year.

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Folly Beach earlier this year imposed a short-term rental cap following a referendum. Folly Beach has fewer than half as many residences as Isle of Palms, and the town now has an 800-license limit on short-term rentals.

Isle of Palms would have 1,600, plus as many licenses as full-time residents want for their homes, if the referendum were to pass. Residents will also choose four City Council members in the election, from eight candidates.

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Reach David Slade at 843-937-5552. Follow him on Twitter @DSladeNews.

ISLE OF PALMS, S.C. (WCSC) - Big changes could be coming to the noise ordinance on Isle of Palms as city leaders hope to make the rules more clear.

The city’s noise ordinance currently doesn’t list specific limits. A proposal would establish set decibel levels based on the time and day of the week as well as the area:

Isle of Palms business owners got the chance to see the numbers and ask questions on Friday.

“We want them to understand that they have a voice, we want to hear from them,” Police Chief Kevin Cornett said. “Anything that is going to impact businesses we want them to be able to come to us and say what they think about it.”

One area resident, who only identified himself as Paul, says the noise ordinance needs to have a balance.

“Obviously, late at night you don’t want people making a lot of noise walking up and down the streets while residents are trying to go to bed, but at the same time this is a vacation spot, so you have to have a little bit on leeway for people to enjoy themselves but also be respectful,” he said.

Cornett says they’re working to find a solution that will work for businesses and residents and increase livability for everyone.

Cornette says noise is a hot topic on the island and he values feedback on this from both residents and business owners.

“Everybody is very much invested in this conversation,” Cornett said. “The city council is taking it very seriously and they are going around and talking to people to get their input. So, I think they are doing a great job on making sure voices are heard so that when we get the final project it’s fair and something that will work for everybody.”

Officers use a calibrated decibel reader when called out to a noise complaint.

“That’s how we determine if it’s a violation and then we would take other factors into account like background noise to keep the realistic approach to is as well,” Cornett said.

The public safety committee has to create a final draft before it will head to the city council for two separate readings.

Copyright 2024 WCSC. All rights reserved.

Editor’s note: This story has been updated to include additional information from the city, including the fact that IOP city does not set prices for the new park area.

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ISLE OF PALMS, S.C. (WCBD) – Construction is underway on a new Isle of Palms waterfront space that will include a pier and other amenities.

Chaundra Yudchenko, who serves as the city’s public relations and tourism coordinator, said the Isle of Palms Public Dock Renovation Project will include a new 16-foot-wide pier with swings and benches.

The project also includes a floating dock with American Disabilities Act (ADA) compliant kayak and stand-up paddleboard launching.

Yudchenko said the public dock is not intended to be used for boat mooring; it will be available to the public for recreational use and passive water activities.

Construction of the public dock is set to begin in March with completion in May.

It’s all part of a 2020 vote by Isle of Palms City Council to improve the island’s marina area.

And while some are excited to have a new area to spend time with their family, others are concerned about potential costs.

“It’ll be nice to have something to bring the grandchildren over to and stuff like that- so, it’ll be nice,” said part-time resident, Dale Johns.

The project is an investment city council member Blair Hahn said was expensive but well worth it.

“The city has gone to great expense to redo the dock and we’re going to have a little green space,” Hahn said.

However, a visit to the park could cost more for non-residents. The plan is to charge visitors for parking and to launch a boat from the public dock. The cost to park is $3.50 per foot of the trailer plus a utility fee per day.

The private marina operators set fees for the new park area – they are not set by the city.

One non-resident who wanted to stay anonymous said many people are upset about this part of the plan. “The city is granting its residents special parking privileges and charging nonresidents exorbitant fees, all while calling this a “public dock.”

Hahn says fees for accessing public parks are nothing new in Charleston.

“It’s no different than Charleston County Park. They charge $20 a car to park on the island so unfortunately, that’s just a reality,” Hahn said.

The nonresident went on to say not everyone will be able to pay the fees.

“The city of Isle of Palms needs to treat residents and nonresidents the same at its “Public park” and charge everyone a fair amount, or allow free parking for everyone,” they said.

The city, according to Yudchenko, has not discussed implementing any feeds for the use of the public dock.

“Marina docks, boat launch fees, and The Outpost marina store are managed by Coastal Marinas, which is a tenant of the city. Fees for boat launching, dockage, and storage are determined by the marina tenant,” said Yudchenko.

Despite the concern, Hahn believes the park will still serve as a popular meeting spot for locals and visitors.

“We are doing everything we can to be resident-friendly and visitor-friendly and to bring people to Isle of Palms, but there’s always a cost to everything you do,” Hahn said.

Additionally, Yudchenko said the city is working with the marina restaurant, Islander 71, on a new parking layout to “increase the number and efficiency of parking spaces available to residents, visitors, and restaurant customers.”

The project is expected to be completed by May of this year.

ISLE OF PALMS — Record tides from an unexpected nor'easter in December ripped away several feet of sand on this barrier island, exposing an unauthorized, clandestine wall in front of a beachfront home near Breach Inlet.

The wall's unveiling also spawned a power struggle between the state Department of Health and Environmental Control and the Ocean Boulevard homeowner, with the two at odds over property rights and protecting the diminishing shoreline.

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This is all playing out on a sandy beach where waves are clawing closer to multi-million dollar homes amid heavy erosion caused by storms and high tides.

The home at the center of the dispute belongs to Rom Reddy, owner of the multimedia local news outlet MyLo News. After taking a beating from Hurricane Idalia last year, Reddy said he installed the wall as a erosion control barrier and covered it with 30 feet of sand.

The December nor'easter washed away the sand, uncovering the bulwark.

While performing post-storm damage assessments, DHEC became aware of the structure.

Some call it a sea wall, which the state defines as a retaining wall designed to withstand wave forces. Reddy maintains his wall isn't a sea wall, as it was never meant to be exposed to the ocean. It was meant to be buried beneath the sand to protect his home's foundation and yard, he said.

"This keeps my yard stable and keeps it from moving around, which is what a retaining wall does. If we have a catastrophic event, it gives my property some protection, although a very nominal level, because it's not meant to be ocean facing," Reddy said.

Reddy said the nor'easter left the wall tilting and unstable, prompting him to have it rebuilt. In response, DHEC sent a cease-and-desist letter in January to halt the construction.

Cease he did not. Construction on the wall continues to move full steam ahead and shows no sign of slowing down.

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Reddy said it is his right as a property owner to protect his home. The area landward of the setback line is his to do with as he pleases, he said, citing South Carolina's Coastal Tidelands and Wetlands Act.

Not so, according to DHEC's division of Ocean and Coastal Resource Management.

The sand in front of Reddy's property is considered a critical area, the agency said, and any alteration of a critical area requires permits from OCRM, even critical areas that are landward of the jurisdictional setback.

DHEC spokesperson Laura Renwick said the agency regularly issues permits for work in these areas, though it is unlikely Reddy's wall would have been approved.

"Since erosion control structures and devices such as the one identified at this property have been banned per state law since 1988, this structure would not have been permitted," Renwick said.

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Isle of Palms officials said they are aware of the structure, which violates a city ordinance prohibiting hard erosion control measures like sea walls, bulkheads and revetments. But in the case of Reddy's unauthorized structure, the city said its hands are tied. Jurisdiction of that area, and much of the island's critical areas, fall under DHEC, said Mayor Phillip Pounds.

"In this particular case, the OCRM has claimed jurisdiction, so that takes the city out of the mix, and it is up to them to enforce the state-level rules. We are relying on the state to enforce their rules that prevent structures like this being built per their cease-and-desist orders," Pounds said.

Judges in two cases in recent years have sided with homeowners who built walls or placed sandbags along eroding sections of the South Carolina coast.

While Reddy is facing pushback from DHEC, some of his neighbors are behind him. Paul Jorgensen, who owns the property adjacent to Reddy, said he doesn't love what is being erected next door, but he understands his neighbor's mindset. Working with the city and the state to get approval for protective measures has left him feeling frustrated.

"The city and the state have been utterly horrible at handling the situation. Not only have they been utterly horrible at managing, they won't even let us help ourselves," Jorgensen said.

Jorgensen said the preventative measures the city does take on aren't enough.

Ongoing restoration and protection efforts on the island include continuing sand scraping and sandbag placements on the island that began under an emergency order following Hurricane Idalia in September. City Council gave the efforts a boost in October, allotting $1.25 million to continue sand scraping along the beaches to rebuild the dunes. Council also budgeted $250,000 for installing sandbags on properties within 20 feet of erosion areas.

"The city and the state are not doing nearly enough, and, in fact, are preventing homeowners from protecting our own property," Jorgensen said.

South Carolina hasn't allowed structures like Reddy is building since enacting the Beachfront Management Act in 1988, citing a "false sense of security" the measures give to beachfront property owners while simultaneously aiding in further erosion.

Structures like sea walls block the ability of a wave to break naturally, pushing its force onto adjacent properties. The energy bounces back off of the wall, pulling the sand and eroding the beach on the seaward side. Emily Cedzo, director of conservation programs and policy for the Coastal Conservation League, said softer measures for preventing erosion, like sand fencing and larger restoration projects, are ideal for protecting beaches.

"Those are really the ideal ways to manage a beach responsibly so that it can provide good protection for private properties, but also public access and wildlife habitat," Cedzo said.

With multiple cease-and-desist directives, DHEC could begin to dole out fines or penalties.

"When DHEC identifies violations of applicable state laws or regulations, the agency has the authority to initiate an enforcement process that may result in the issuing of a civil penalty to the responsible party, among other actions," Renwick said.

Some think it's time for DHEC to take action.

"I think DHEC is going to have to move forward with enforcement. I don't know what their process or timeline looks like, but I think it's clear that they've already tried to communicate with the property owner," Cedzo said. "I know that several residents on the Isle of Palms are really concerned about it and continue sending reports."

Reddy said the cease-and-desist directives from DHEC won't deter him.

"They have to go in front of a judge and prove to the judge that we're, in fact, breaking the law. And we're ready for that," Reddy said.

Reach Anna Sharpe at 843-806-6790.

ISLE OF PALMS, S.C. (WCSC) - As erosion continues to eat away at the Isle of Palms beachfront, homeowners are clashing with state agencies and environmental advocates about how to protect their property and the beach.

Rom Reddy and his wife have had their beachfront house on Ocean Boulevard for years. After storms left their property exposed to the ocean, Reddy says he asked about the city and state plan to rebuild the dune.

“The primary protection for a beach is the dune system. It protects the coastline. It protects the ecosystem for turtles, birds, vegetation, and so on and so forth. There hasn’t been a dune here for a year and a half. So there was no protection, so homeowners have to protect their property,” Reddy says.

When he says he didn’t get a good enough answer about when and how restoration would take place, he took matters into his own hands. Reddy says he looked carefully at his property lines and began building a seawall on the landward side of his property.

But soon after, the Department of Health and Environmental Control and state Ocean and Resource Coastal Management issued him a warning to stop building.

The agencies say his structure is in what’s called the critical area of the beach. The critical area is a part of someone’s beachfront property that is also active beach, so the agencies have some control.

Environmental groups like the Coastal Conservation League agree with Reddy about the importance of the dune system. But Emily Cedzo, CCL’s director of conservation programs and policy, says they are asking to become a part of the lawsuit and work on behalf of DHEC and OCRM to get the seawall removed.

“That is the whole point of our beach is to have these nice healthy dunes that will take the hit when a storm comes that will do their job to protect what is behind them. And then we go to work and we build it back up,” Cedzo says. “The reality is it’s a very costly solution, but it is something that is moving forward in the next few months on Isle of Palms and we are hopeful that a lot of those homes will now have that protection.”

Cedzo does note how important she thinks it is for local government to have a plan in place for when expected situations like the erosion happen. She says right now CCL takes issue with the seawall on the beach.

“The whole point of the DHEC having jurisdiction over this area is to protect a public trust resource,” Cedzo says. “It’s a public trust resource that in South Carolina belongs to you and I and everyone else who lives here and gets to enjoy the use of these places. So in particular, when we think about these kinds of materials being put within critical area, it can be a public access and safety issue. It can be a problem for nesting wildlife, any kind of foraging wildlife in that area.”

Reddy argues that he would not have had to go to the lengths of a seawall if there was a timely plan to replace the dune that worked. He also says DHEC doesn’t have control of the land he built on. He is standing by the fact that property lines clearly mark a seaward side of his property, where agencies can intervene, and a landward side where he can build.

DHEC’s Petition for Injunctive Relief, asking the wall be removed states:

Although the hard erosion control structure depicted in the above picture was installed landward of the beach/dune critical area defined by the jurisdictional lines, it was nonetheless in the beaches critical area.

The statement creates a murky definition of “critical area.” The current lawsuits might set a precedent for future property rights situations. The question at large is: what happens when erosion moves up the beach, taking the critical area into the property owner’s original landward pieces of property.

“This is not a me issue. This is happening all across the state. And it’s got to stop. People have got to stand up and say they have a constitutional right to protect their property,” Reddy says. “And these agencies and these radical environmental groups cannot take it away from them. I’m hoping I can be the voice for so many people in the state that are being overrun.”

Reddy says people along Isle of Palms beach have already reached out to him echoing his property concerns. Walking along the beach at Ocean Avenue shows that the tides often reach right up nearly to the homes themselves.

“If you live on a beach, you expect erosion to come and go, however, every American has a constitutional right to be able to protect their property and that can’t be taken away. That’s the Fifth Amendment to the U.S. Constitution,” Reddy says.

He’s referring to a portion of the Fifth Amendment that protects people from government seizure of their property without compensation. While the question of the future of the properly line issue looms, DHEC, OCRM and now CCL take issue with a seawall structure to begin with.

“The other piece I think to keep in mind here that is really important is since 1988, South Carolina established the South Carolina Beachfront Management Act, and that act has, since 1988, prohibited new sea walls are being constructed on our beaches,” Cedzo says.

She says there’s a bigger picture to look on the other side of the seawall.

“Seawalls might protect what is behind or landward of them, but when it comes to the seaward side of that wall or the adjacent properties, anytime a hard structure like a short parallel seawall comes into contact with that wind and wave energy, it has the ability to further erode the beach. So while it might help you know, the yard behind it, or the structure behind it, it really does no good for our public beaches if we want folks to be able to use them and wildlife to be able to use them,” Cedzo says.

The CCL is hoping to get legal permission to advocate against the seawall and have it removed in this case. Reddy says while his name is attached to this case, he is not alone in the property issue and has heard from many people across the lowcountry experiencing similar situations. He says he’s not backing down.

Isle of Palms did not respond to a request for comment on this story.

Copyright 2024 WCSC. All rights reserved.