Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace

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Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
SEA PINES CRITICAL NEEDS REFERENDUM

Key Questions Answered

              VOTE YES
Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
Securing Sea Pines’ future together.

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Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
Since 1956 when Charles Fraser was first imagining Sea Pines, this vibrant and tremendously successful
community has served as “…a model nationally for what a superior resort and retirement community could
be.”* Yet today Sea Pines faces many challenges to retain our position as a superior resort and community
–as well as our critical role in helping all of Hilton Head Island remain a premier, world-class destination.

Over the last few years we’ve identified many needs and obstacles to our future. We’ve completed surveys
to get your input, conducted studies by qualified consultants to determine the scope and costs of various
critical community needs, developed plans to resolve them and worked to keep you informed along the
way. Many of you have participated in the development of these recommended solutions, and although
it’s rare when everybody agrees on everything, we have tried to build a consensus for our needs and
subsequent solutions.

However, as you may be aware, Sea Pines faces a major funding shortfall to deal with our critical
community needs. Age is our problem, our infrastructure spending has been deferred and delayed for
many years, and we are now in a position of trying to catch up. To secure the necessary funding, Sea Pines
requires a referendum with 75% support of those voting. We want you to make the most informed decision
possible; this booklet answers your top questions simply and concisely. That said, if you’d like more
information we encourage you to visit our website VoteForSeaPines.com.

We are one Sea Pines. The future of our community, and what it means to each of us depends on your
support and your informed vote.

Thank you.

Bret Martin, Sea Pines CSA President

* (ref. from Profits and Politics in Paradise by Michael A. Danielson)

                                                                                                                3
Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
What is this critical needs referendum?

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Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
Long overdue change to raise the necessary revenue
                to maintain and preserve the future of Sea Pines.

  “Sea Pines is where it all began for Hilton Head Island. It’s one of the country’s most iconic
communities and its success is closely intertwined with the Island’s overall reputation. Travelers
   and home buyers have high expectations and this critical funding referendum will ensure
 Sea Pines remains an attractive option for residents and vacationers from around the world.”
                       - John McCann, Mayor, Town of Hilton Head Island

                                                                                       VoteForSeaPines.com   5
Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
Why is this important to you?

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Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
• Because the value of your property is
     in jeopardy.

   • Because your lifestyle​is at stake.

   • Because we’ve been kicking the can down
     the road for too long. It’s past time to address
     Sea Pines’ critical issues.

   • Because if we continue to wait, it will cost
     even more in the long run.

“As a Sea Pines Property Owner and Town Councilman representing
  Sea Pines, I can’t stress enough the importance of obtaining the
 funds necessary to properly maintain and care for our community.
  Funding the needs of the community is really about securing the
      future of not only Sea Pines, but of Hilton Head Island.”
    - Tom Lennox, Hilton Head Island Town Councilman, Ward 5
                  and Sea Pines Property Owner  

                                                                     VoteForSeaPines.com   7
Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
Who benefits?

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Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
You as a property owner, everyone who is part of our Sea Pines Community,
Hilton Head Island as a whole – and even the entire state of South Carolina.

 “Hilton Head Island is considered the #1 island in the nation and Sea Pines is the catalyst for
   that stellar reputation. Continuous community improvements are vital for any destination
       that wants to stay at the top of its game. Sea Pines is critical to the success of our
  destination and its reputation as an outstanding place to visit and to purchase real estate.”
      - Bill Miles, President and CEO, Hilton Head Island-Bluffton Chamber of Commerce

                                                                                     VoteForSeaPines.com   9
Key Questions Answered - SEA PINES CRITICAL NEEDS REFERENDUM - VOTE YES - Squarespace
What are the critical areas of need?

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Roadways   Stormwater   Landscape   Traffic & Gate

                                      VoteForSeaPines.com   11
ROADWAYS
     Roadway and traffic flow improvements
     are essential to address delays, safety, and
     overall conditions. Last year marked the
     2nd year of a 6-year plan to repair and
     renovate all primary roads in Sea Pines. Our
                                                    Roadway Erosion             Roadway Erosion Washout
     secondary and tertiary roadways
     throughout the community also require
     repairs and renovations.

     67 MILES OF PAVED ROADS

     4 MILES OF BEACH ACCESS,
     PEDESTRIAN SIDEWALKS
     AND BREEZEWAYS

                                                    Deer Island Bridge Repair   Deteriorating Leisure Trail
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STORMWATER
                                                      Much of our stormwater system is in need
                                                      of repairs and replacements to help return
                                                      the system to its original functionality,
                                                      as well as restore the natural habitat for
                                                      the wildlife that lives in and around our
Channel Excavation         Clogged Catch Basin
                                                      waterways.

                                                      2250 CATCH BASINS

                                                      185 ACRES OF DRAINAGE LAGOONS,
                                                      CANALS, PONDS, AND LAKES

                                                      36 MILES OF DRAINAGE PIPES

Root Intrusion Into Pipe   Crews Clear Clogged Pipe
                                                                              VoteForSeaPines.com 13
LANDSCAPE
     Our natural and maintained areas have
     deteriorated for many reasons including
     storm damage, invasive species, natural
     aging, and minimal maintenance practices.
     It’s critical we begin to replace, and then
                                                   Dying Trees                  Bank Erosion
     maintain these areas with more
     comprehensive efforts.

     1,200 ACRES OF OPEN SPACE AND
     GREENBELTS

     605 ACRES OF COMMUNITY LEASED
     AND MAINTAINED FOREST PRESERVE
     WILDLIFE HABITAT AND ENVIRONMENTAL
     SANITARY ZONES

     10 ACRES OF BEACH ACCESS BREEZEWAYS
     AND BOARDWALKS

     17 MILES OF PAVED LEISURE TRAILS

                                                   Failing Pedestrian Railing   Deteriorating Landscaping
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TRAFFIC & GATE
                              Gate and intersection improvements
                              will help to better the flow of traffic
                              throughout our community – especially
                              at our gates. We continue to develop plans
                              for alternative locations for all pass and
Greenwood Gate   Traffic
                              cash transactions, as well as implement
                              new gate technology to greatly improve
                              your entry experience.

                              800,000 GATE PASSES ISSUED ANNUALLY

                              15,000-18,000 INBOUND VEHICLES PER DAY
                              AT OUR GATES IN THE HEIGHT OF SUMMER -
                              APPROXIMATELY 10% ARE DAILY VISITOR
                              PASSES

Traffic          Ocean Gate
                                                     VoteForSeaPines.com 15
How much will this cost?

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WHERE THE REFERENDUM MONEY GOES
                                                              (7 Yr. Avg. Total = $2,663,000)
                                                           Gate and         Corridor Landscape
                                                          Pass Office
                                                       WHERE     THE REFERENDUM  $358,000
                                                                                   MONEY     GOES
                                                        Reconfiguration            13%         Reserve Contributions
                                                                 (SEVEN YEAR AVERAGE)
                                                           $361,000                                  $92,000
                           Roadways and Leisure Trails       14%                                        4%
                                  $303,000
                                     11%

                                        Tree Care
                                        $568,000
                                           21%

                                                                                              Stormwater
                                                         Forecast 2022                         $981,000
                                                                                                  37%
Funds available to address these critical needs          $1,658,000*

Funds generated by the new gate fee agreements           $1,177,000**

Approximate total cost to address our critical           $(5,498,000)
community needs annually.

Shortfall                                                $(2,663,000)

* - $1,658,00 is estimated to be available by 2022 which is lower than
prior years primarily due to inflation and labor related costs.
** - Funds generated from the increase in both the daily commercial
and non-commercial gate passes.
2022 Forecast is based on historical data

                                                                                       VoteForSeaPines.com/Financial 17
Where’s the money coming from?

     “We fully support CSA’s proposed referendum to secure much needed funding for capital
     improvements. This investment in our community will enhance the Sea Pines lifestyle and
       ensure future generations of property owners will continue to enjoy the extraordinary
                 Sea Pines experience that has made us a world-class community.”

                       - Steve Birdwell, President of Sea Pines Resort, LLC

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While we were pleased with the level of support and awareness of our critical community
needs, the community clearly voiced concern with some of the initial terms of the
proposed referendum to address the funding shortfall. This valuable feedback led CSA
to modify portions of the originally proposed referendum terms.

   Removed the real estate transfer fee

   Introduced a residential owner assessment increase in phases, not a one-time increase

   Delayed collection of any new assessment increase until 2020

Additionally, through your feedback we have provided the following:

   Funds collected from this referendum will be restricted to the critical needs

   Critical need expenses and funds will be reported on in our annual audited
   financial statements

   If funds collected exceed the need the assessment can be reduced

                                                                      VoteForSeaPines.com/Financial 19
The NEW APPROVED Referendum Terms

     Sea Pines Resort Contribution:
     The Sea Pines Resort will increase its annual assessment by 50%. (from 0.5% to 0.75%
     of its adjusted gross revenue)​

     Sea Pines Commercial Contribution:
     The Sea Pines commercial owners will commit to an annual assessment increase of
     more than 100% on behalf of their commercial tenants​

     Sea Pines Residential Property Owner Contribution:
     Improved Property – A three year assessment increase of $150 per year, for a total
     increase of $450 by 2022

     Unimproved Property – A three year assessment increase of $90 per year, for a total
     increase of $270 by 2022.

                                                                          Collected Assessments
                                                              2016                  Forecasted 2022           %Increase

               Residential Property Owners          $5,971,000       95.7%        $9,391,000 94.3%                57.3%

               Sea Pines Resort, LLC                  $224,000        3.6%          $459,000       4.6%         104.9%

               Commercial*                             $43,000        0.7%           $111,000       1.1%         158.1%

                                                    $6,238,000        100%        $9,961,000      100%
               *2022 Commercial includes new Tenant Assessment
               2022 Forecast is based on historical data (residential and commercial are based on current CPI with Resort
               increased on its eight year average)

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WHERE THE REFERENDUM MONEY COMES FROM
                      WHERE THE REFERENDUM
                                    (7 YEAR AVERAGE) MONEY COMES
                          FROM7 Yr.(SEVEN
             Residential Property
                                             YEAR
                                     Avg. Total=    AVERAGE)
                                                 $2,663,000
              Owner Assessment
                 $2,419,000
                     91%

                                                                  Sea Pines Resort
                                          Commercial Tenants         $211,000
                                              $33,000                    8%
                                                1%

                                                             2018                         ESTIMATED 2022
Based on historical increases and                     ANNUAL RESIDENTIAL                ANNUAL RESIDENTIAL
                                                         ASSESSMENTS                       ASSESSMENTS*
assumptions and a passed referendum, this
is where Sea Pines will be in 2022 after all         Palmetto Dunes         $1,800    Palmetto Dunes         $2,007
                                                     Indigo Run             $1,685    Indigo Run             $2,061
increases are realized and assuming all other        Port Royal             $1,638    Port Royal              $1,928
communities increased as they have over              Palmetto Hall          $1,520    Palmetto Hall           $1,842
the last 4 years.                                    Hilton Head Plantation $1,395    Hilton Head Plantation $1,723
                                                     Sea Pines              $1,050    Sea Pines               $1,581
                                                     Shipyard$935                     Shipyard$1,013

                                                  *Based on 4 year average increase.

                                                                                                VoteForSeaPines.com 21
We’re all in this together.

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You may see opinions, rumors and misinformation from a small minority of
people. Don’t let the opinions of a few deter the rest of us from passing this
vote to fund critical needs that will preserve the value of your property and
your experience in Sea Pines.

The simple facts are…

  • Our community is 63 years old and we need your support.

  • We believe that this represents our best path forward.

  • We have the required agreement to the terms of the referendum
    from The Sea Pines Resort, and now need your YES vote to ensure
    the future of Sea Pines.

  • We are committed to caring for and properly maintaining our
    community. We serve no other purpose than to promote, enhance,
    and protect the mutual interests of all owners of property in
    Sea Pines.

                                                                       VoteForSeaPines.com 23
Frequently Asked Questions

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These are answers to additional questions from the community collected through our property
          owner surveys, community meetings and by individual community members at various interactions.

          WHY IS THIS FUNDING REFERENDUM                      to the gate fee. The Resort has also agreed     of other similar communities. Feedback
          NECESSARY?                                          to a 50% increase to their assessment and       has been collected through a survey that
          Sea Pines is the oldest large-scale                 to add a commercial tenant assessment.          supports a longer-range view to get to 75%
          community on Hilton Head Island. Our                Now we are coming to our residential            support and your input is now being acted
          community’s infrastructure spending has             property owners to ask you to protect your      upon in revised terms of the referendum.
          been deferred, delayed and in some cas-             investment in our community and approve
          es unidentified for many years. In order to         funding the future of Sea Pines.
                                                                                                              HOW WILL THIS CHANGE IMPACT THE
          secure the future of Sea Pines and prevent                                                          VALUE OF MY PROPERTY IN SEA PINES?
          our community from further deterioration,           WHY DIDN’T YOU JUST INSTITUTE A
          CSA requires additional funding.                                                                    If this referendum fails, all in Sea Pines will
                                                              ONE-TIME SPECIAL ASSESSMENT FOR                 feel its effects as CSA will not have the
                                                              THESE NEEDS?                                    funding we need to maintain these critical
          WHY NOW?                                            CSA presented initial terms of a referendum     components of our community. The critical
          We recognize that we can no longer                  it believed would meet the needs of the         community needs outlined in this booklet
          continue to defer and delay these critical          community over time based on a review of        will continue to be delayed, deferred and
          needs and your CSA Board of Directors has           assessments and fees of other communities       go unaddressed. Additionally, key services
          been working diligently to increase funding         both on Hilton Head Island and in other         provided by CSA that owners have come
          to support those critical needs. We success-        similar communities. Increasing the initial     to expect may need to be significantly
          fully reached an agreement to increase con-         amount to a one-time assessment to cover        reduced as emergency funding of these
          tributions from others through increases to         all future work was not supported in            deteriorated conditions is necessitated by
          annual pass decal cost as well as increases         comments or in the assessments and fees         continued decay and failure.

                                                                Visit VoteForSeaPines.com/timeline

      HISTORICAL                   JUNE 2008                          APRIL 2014                      FEBRUARY 2015
       TIMELINE                    Sea Pines Infrastructure           $1.00 fee was added to the      CSA Board adopts the concept      JUNE 2015
                                   reserve funding referendum         Daily Gate Fee, raising the     of a Long Range Strategic Plan    CSA conducts with Town of
                                   fails by only 118 votes.           daily gate fee from $5 to $6.   (LRSP) focused on financial       Hilton Head detailed traffic
 For more detailed information     Sea Pines CSA does not                                             stability, development of         study on Greenwood Drive.
     on this timeline visit        receive the funds it needs to                                      Community Wide Partnerships,
                                   replace, renew and restore its                                     Enhancing Lifestyle, and Gov-
VoteForSeaPines.com/timeline       infrastructure inventory.                                          ernance.

                                                                                                                                                                       25
HOW DID YOU INVOLVE THE                           of at least some overlay of asphalt and in            STORMWATER  
            COMMUNITY ON THIS IMPORTANT                       some cases (like that of Greenwood Drive
            DECISION REGARDING THIS FUNDING                   last year), extensive renovation is needed.
            REFERENDUM?                                       Additionally, many of our secondary and               HOW DID YOU DETERMINE THAT
                                                              tertiary roadways require repairs and                 SEA PINES HAS A STORMWATER ISSUE
            Our Community leaders have, in a                                                                        IN OUR COMMUNITY?  
            transparent manner worked alongside               renovations in the near future.
            and solicited feedback from our                                                                         In 2016, CSA contracted a qualified profes-
            community through public meetings,                                                                      sional engineering firm to conduct a
                                                              DO YOU HAVE A PLAN IN PLACE FOR                       comprehensive study of the stormwater
            surveys, in person conversations and              OUTLINING THE WORK NEEDED TO FIX
            emails. Through your feedback we have                                                                   infrastructure and system conditions in
                                                              THESE ROADWAYS?                                       Sea Pines. The study showed significant
            brought forth terms which we believe
            are in the best interest of all owners and        Yes, we have a plan to address the road-              deficiencies throughout our system and
            should be supported by the community.             way infrastructure repairs or renovations             need for repair and replacement of these
            The timeline in this information brochure         on our roadways. Our plan is updated                  systems over the next 20 to 30 years as well
            provides information on the collection of         annually and our reserve study is updated             as identifying the need for the continued
            your input.                                       every three years. Roadway repairs and                on-going maintenance and management of
                                                              renovations are critical to addressing traf-          our stormwater drainage system.
                                                              fic, safety, and overall roadway conditions
            ROADWAYS                                          in Sea Pines.
                                                                                                                    LANDSCAPE CARE & MANAGEMENT  

            HOW DO WE KNOW WHAT ROAD
            RENOVATIONS ARE NEEDED?                                                                                 HOW DID YOU DETERMINE THE
                                                                                                                    LANDSCAPE CARE AND MANAGEMENT
            In 2016, CSA completed a comprehensive                                                                  WERE A HIGH COMMUNITY PRIORITY?
            reserve study. The study indicated that
            each of our primary roadways are in need                                                                In a survey conducted in 2015, property
                                                                                                                    owners prioritized “landscape and

                                                                  Visit VoteForSeaPines.com/timeline

    OCTOBER 2015                     DECEMBER 2015                     JUNE 2016                          JULY 2016                        SEPTEMBER 2016
   Property owner survey con-        Landscape Maintenance             CSA contracts with an              Town of Hilton Head completes    Tropical Storm Hermine
   ducted to gather information      Design Preference Survey          independent contractor to con-     Circle to Circle recommenda-     impacts Sea Pines; Storm
   and feedback on several key       conducted to determine the        duct a Reserve Study. Report       tions – report includes growth   brings fallen trees, hanging
   services and initiatives that     community’s landscaping           addresses the existing assets      projections for traffic on       limbs, damaged trees and
   were currently being provided     preference for CSA Managed        and infrastructure; the study      Greenwood Drive up to and        excessive amounts of general
   or considered for the future.     areas.                            did not consider any improve-      outside the gate will continue   storm debris. CSA staff begins
   Owners provide feedback                                             ments or enhancements for          to grow forcing additional       clean up operations immedi-
   on the importance of the                                            stormwater conditions. Report      failures of delay standards.     ately following the storm.
   LRSP initiatives; prioritizing                                      also indicated that all primary,
   Greenwood Gate and                                                  and many secondary and
   Landscape and Maintenance                                           tertiary roadways required
26 improvements as the highest
                                                                       repair and replacement in the
   priorities.                                                         next several years.
maintenance” as a high priority with 90.4%            WHY HAVE WE LET OUR LANDSCAPING                      HOW DID YOU DETERMINE THE GATE
       of owners indicating that landscape and               DETERIORATE?                                         ISSUES WERE A HIGH COMMUNITY
       maintenance were either: Extremely                    Due to our recent storms, the aging of our           PRIORITY?  
       Important (20.3%), Very Important (41.8%)             natural species, the introduction of various         You told us! In a survey of property owners
       or Somewhat Important (28.3%). Your                   invasive species, as well as our own current         conducted in 2015, property owners priori-
       feedback on this survey helped CSA                    limited maintenance practices, our land-             tized “gate improvements” as a high
       prioritize landscaping.                               scape and natural, but maintained areas              priority with 88.9% of owners indicating that
                                                             in Sea Pines have deteriorated. CSA has              gate improvements were either: Extremely
       HOW DO YOU KNOW WHAT OUR                              begun the process of repairing and replac-           Important (36.3%), Very Important (31.5%)
       PREFERENCES ARE FOR LANDSCAPING                       ing these areas, and then maintaining them           or Somewhat Important (21.1%).
       DESIGN?                                               in a natural manner.

       A Landscape Maintenance Preference                                                                         HOW WILL THE PLANNED GATE AND
       Design survey was also conducted in 2015              GATE AND TRAFFIC                                     TRAFFIC IMPROVEMENTS HELP?  
       and identified that as a whole, survey                                                                     The planned improvements will help with
       participants preferred a well-maintained                                                                   the flow of traffic into Sea Pines. Addition-
       natural look for most types of landscape              WHERE CAN I GO TO FIND OUT MORE
                                                             INFORMATION REGARDING THE GATE                       ally, CSA currently occupies space in the
       settings within Sea Pines, with a more                                                                     Sea Pines Resorts’ Welcome Center for our
       formal, well-maintained setting of plant              AND TRAFFIC IMPROVEMENTS AT THE
                                                             GREENWOOD GATE?                                      pass operations and is on a year to year
       beds at our entrances, and floral displays                                                                 lease. CSA is working to develop an
       in some of the more developed settings.               CSA has presented materials in several               alternative location for gate passes
                                                             community meetings regarding the                     and cash transactions with the goal of
                                                             Gallery of Shops location. Detailed current          improving the entry experience and traffic
                                                             information on this project can be found at          flow through process modification.  
                                                             www.SeaPinesLiving.com/14GreenwoodDr

                                                              Visit VoteForSeaPines.com/timeline

OCTOBER 2016                      FALL 2016                         DECEMBER 2016                      MAY 2017                          JUNE 2017
Hurricane Matthew makes           CSA task force of the Gate        Pittman Engineering com-           Representatives of the CSA        CSA Board, Sea Pines Center
landfall near coast of Sea        Entry Committee begins an         pletes a hydrology study of        Executive Committee began         and Sea Pines Resort approve
Pines. CSA begins recovery        endeavor to come to an            the stormwater infrastructure      meeting with The Sea Pines        the separation of daily gate
efforts following the devastat-   agreement with the necessary      and system conditions in Sea       Resort and the Owners of the      passes into two classifications,
ing hurricane. 435,087 cubic      parties to increase the daily     Pines not previously included      Sea Pines Center to begin the     one for commercial vehicles
yards of storm debris would be    visitor gate fee.                 in the Reserve Study. Study        discussions of an agreement       and one for non-commercial.
removed from Sea Pines alone,                                       shows significant deficiencies     to increase the Daily “Visitor”   The daily commercial vehicle
the largest amount removed                                          throughout our system and          Gate Fee.                         gate fee is increased from
compared to all other PUDS in                                       need for repair, restoration and                                     $6.00 to $10.00. This results
Hilton Head Island.                                                 replacement.                                                         in an additional $403,000 due
                                                                                                                                         to this increase.
                                                                                                                                                                            27
AT THE GATES, ARE THERE PLANS TO                     expenses will be reported on in CSA’s au-             and renovations previously mentioned will
             IMPROVE THE INTERSECTION AND                         dited annual report.                                  need to continue well into the future, while we
             LEISURE PATH CROSSING?                                                                                     also address the replenishment of our reserve
             Yes, these improvements include plans that                                                                 funds to an acceptable level.  
                                                                  DO WE HAVE ANY AVAILABLE FUNDS TO
             will also make roadway, pedestrian and bi-           COVER THE SHORTFALL?  
             cycle traffic safer at the Greenwood Drive                                                                 OTHER THAN RESIDENTIAL PROPERTY
             Gate and the Ocean Gate.                             Yes, but not enough. The total approximate
                                                                  cost to address our critical community                OWNERS; HOW MUCH ARE OTHER
                                                                  needs is $5,498,000 annually over the                 OWNERS CONTRIBUTING TO THE
             FINANCIAL REVIEW                                     next seven years. Much of this stormwater             REFERENDUM?  
                                                                  landscaping and road and pathway work                 The Sea Pines Resort will increase its annual
                                                                  will continue well beyond the initial seven           assessment by 50% (from 0.5% to 0.75%
             HOW WILL THE FUNDS COLLECTED                         years. Our anticipated average funds avail-           of its adjusted gross revenue in 2020). By
             FROM THIS REFERENDUM BE REPORTED                     able (during the initial seven years) to ad-          the time the residential increase is fully in
             ON, IF IT PASSES?                                    dress these critical needs is $2,835,000.             place we anticipate (based on historical
             If passed, the referendum revenues and re-           The estimated average annual short-                   assessments from the Resort) the Resorts
             lated expenses will be reported on in CSA’s          fall (based on the next seven years) is               contribution will be $459,000. This cove-
             audited annual report.                               $2,663,000. This referendum, if passed will           nant amendment will also formally establish
                                                                  fund the shortfall and ensure we have the             a tenant assessment that will increase in
                                                                  necessary funds to properly maintain the              accordance with the same provisions as the
             HOW CAN THE COMMUNITY BE                             community into the future.                            residential annual assessment (CPI) and will
             ASSURED THE MONEY ACTUALLY                                                                                 immediately double the tenant contribution
             GOES TO THE ITEMS MENTIONED?                                                                               paid to the community service fund. This
             The revenues from this referendum will be            DO WE HAVE ENOUGH FUNDING IN                          is an estimated $33,000 per year going
             dedicated for the specific purposes listed           OUR RESERVES?                                         forward. Additionally, commercial busi-
             and the referendum revenues and related              The needed repairs, replacements, restorations        ness owners will continue to contribute 1%

                                                                    Visit VoteForSeaPines.com/timeline

     AUGUST 2017                     SEPTEMBER 2017                       MAY 2018                           MAY 2018                           JUNE 2018
     CSA conducts Owner              Hurricane Irma causes a              CSA conducts a community           Solution to top the priority and   CSA hosts the Greenwood Drive
     Survey to determine Gate        mandatory evacuation of Sea          wide survey of Sea Pines           several other priorities of our    Access Concepts Community
     and Traffic issues in the       Pines; Hurricane brings wide         Property Owners to gather          traffic problem at the             Presentation Meeting;
     areas of Greenwood Drive        spread tidal flooding, tree loss     property owner feedback in         Greenwood Gate becomes             Presented concepts to address
     and Ocean Gate.                 and major storm debris to the        order to help us continue to       available. CSA purchases the       the traffic access concerns
                                     community. CSA staff begins          develop community plans.           property at 14 Greenwood           along the corridor of Greenwood
                                     recovery work immediately                                               Drive (The Gallery of Shops        Drive between Sea Pines Circle
                                     once the storm passed.                                                  building) which will allow us      and Club Course Drive which
                                                                                                             to relocate pass sales out of      include the Gallery of Shops
                                                                                                             the roadway and provide a          location.
                                                                                                             permanent home for our pass
28
                                                                                                             office operations.
of their gross revenues to the community             WHY CAN’T THE SEA PINES RESORT                        each year beginning in 2020 for 3 years
       service fund in addition to this new tenant          PAY MORE?                                             and by 2022 we will have a new base
       assessment.                                          If this referendum passes, The Sea Pines              assessment established which will continue
                                                            Resort has agreed to increase its annual              to be adjusted based on the consumer
                                                            assessment by 50% (from 0.5% to 0.75%                 price index just as it is currently adjusted
       GENERAL QUESTIONS                                                                                          today. Many of the infrastructure repairs,
                                                            of its adjusted gross revenue) to assist
                                                            with funding our critical community needs             replacements and restorations that are
       HOW MUCH DOES THE SEA PINES                          which means they will be contributing an              needed today are expected to take
       RESORT PAY NOW IN DOLLARS AND                        additional $235,000 per year to CSA. If the           20-30 years to complete and beyond that
       WHAT WILL THE NEW AMOUNT BE?                         referendum does not pass they will continue           time we will need to continue to fund the
                                                            to pay 0.5%.                                          on-going maintenance and care of our
       Just as a residential owner pays an annual                                                                 community that has long since been
       assessment to CSA, so does the Sea Pines                                                                   deferred. Since these funds are restricted, if
       Resort. The Sea Pines Resort annual                  WHAT IS THE DIFFERENCE BETWEEN AN                     the funding from this increase is no longer
       assessment is based on a percentage of               IMPROVED VS. UNIMPROVED PROPERTY                      needed, the CSA Board of Directors may
       their gross revenue, currently 0.5% of their         IN SEA PINES?                                         make an adjustment to reduce the amount
       adjusted gross revenue. If this funding                                                                    of funds collected.
       referendum were approved, The Sea Pines              Per our 1974 Covenants, an unimproved
       Resort has agreed to increase its annual             property is a parcel of land which is intended
                                                            for use as a site for a single family detached        For more information and details visit
       assessment by 50%. (from 0.5% to 0.75%                                                                     VoteforSeaPines.com
       of its gross revenue) to assist with funding         dwelling, townhouse, or patio dwelling until
       our critical community needs. The future             construction has started (groundbreaking).
       amount paid will also vary from year to year         WILL THE RESIDENTIAL OWNER
       depending on the Resort’s Adjusted Gross             ASSESSMENT BE A TEMPORARY
       Revenues, but historically they have grown           INCREASE OR PERMANENT INCREASE?
       far faster than residential assessments.             If this referendum passes, the Residential
                                                            Owner assessment will increase by $150

                                                             Visit VoteForSeaPines.com/timeline

AUGUST 2018                      SEPTEMBER 2018                     SEPTEMBER 2018                     NOVEMBER 2018                       DECEMBER 2018
Through agreement between        CSA Board adopts the               CSA contracts with a profes-       CSA conducts a community            Greenwood Drive Reconstruction
The Sea Pines Resort, Sea        updated Strategic Plan focused     sional arborist to review tree     wide referendum survey of           Phase One completed. Long
Pines Center representatives     on developing an inclusive         health of our aging and storm      property owners regarding level     abandoned remnants of
and the CSA Board of Directors   form of governance, protecting,    damaged tree population            of awareness and support of         landscaped infrastructure
the daily visitor gate fee       maintaining and enhancing          in Sea Pines. The inventory        certain community needs, as         found.
                                                                    indicates that there are approx-
increases from $6 to $8,         the Sea Pines quality of life                                         well as your level of support for
                                                                    imately 130,000 trees within
with a pathway to a possible     and ensuring that CSA has the      the open spaces and parks of       the proposed initial terms of a
increase to $10 for the daily    financial capacity to do so.       Sea Pines. Of these it is          referendum to increase com-
visitor gate fee by 2021.                                           estimated that 5,200 are in        munity funding.
                                                                    need of removal and an addi-
                                                                    tional 1,300 trees should be
                                                                    pruned to reduce tree-related                                                                           29
                                                                    risk to humans and property.
What do I do now?

30
GET INFORMED
Visit VoteForSeaPines.com for information regarding this critical needs
funding referendum.

BE ON THE LOOKOUT FOR YOUR REFERENDUM BALLOT
A Participating Property Owner shall have one vote regardless of the number of
residential lots and family dwelling units owned. Joint owners of property shall have
only one vote.

Referendum ballots will be mailed mid-May and must be post marked for return
30 days later.

VOTE YES TO SUPPORT SEA PINES
We need 75% support of the ballots returned to pass this critical needs funding
referendum.

THE FUTURE OF SEA PINES DEPENDS ON YOUR INFORMED VOTE AND SUPPORT

                                                                            VoteForSeaPines.com 31
PRESORTED
                                          FIRST CLASS
                                           U.S. POSTAGE
175 Greenwood Drive                          PA I D
Hilton Head Island, SC 29928              Hilton Head, SC
                                          Permit No. 260

    Six Oaks

                               VOTE YES
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