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ISLE OF PALMS, S.C. (WCBD) – The council chamber at city hall was filled with residents during tonight’s workshop as city officials and residents hoped to find some clarity on how they should handle this matter going forward.

Isle of Palms city leaders are listening to island residents regarding their stance on short-term rentals.

“Tonight is the third in a series of meetings we’ve been having on short-term rental workshops,” Isle of Palms Mayor Phillip Pounds said. “This is the first one in February; a series of just trying to define what success is going to look like at the end of the day. Make sure we good data, make sure we have good metrics.”

Leaders say they have hosted a number of workshops and listening sessions focused on short-term rentals in the last six months because they are vital to the city.

“Short-term rentals are critical to our island from a revenue standpoint,” Pounds said.

The number of short-term rentals on the island now exceeds 1500. City Council is now considering implementing a cap to limit that number; something several neighbors are in favor of.

“I do believe that it’s time to that council act on this particular item before it is too late,” one Isle of Palms resident said.

“Focus on restricting investment short-term rentals and protect the city,” one neighbor said, “and the residents you serve.”

“Do not make a deal with the devil,” one Isle of Palms resident said. “Do not sell our city, your city, to Airbnb and other STR companies.”

Neighbors believe the steady influx of short-term rentals will lead to the island losing its close-knit community feel.

“To leave the Isle of Palms as the only beach community in the region without a plan for limiting new short-term rental licenses,” one neighbor said, “will result in our neighborhoods being overrun by investment groups looking for rental property.”

As the island’s peak short-term rental season quickly approaches, Pounds says he hopes to have this matter resolved soon.

“All of our short-term rental licenses come due at the end of April this year,” he said. “So, I’d certainly love to have something decided by then, if not before, for sure.”

Folly Beach will vote on short-term rentals Tuesday, February 7.

Charleston County Parks and Recreation Officials say they look forward to formally celebrating the Edwin S. Taylor Folly Beach Fishing Pier Wednesday.

FOLLY BEACH, S.C. (WCSC) - Charleston County Parks and Recreation Officials say they look forward to formally celebrating the Edwin S. Taylor Folly Beach Fishing Pier Wednesday.

The pier will be dedicated at 10 a.m. with a ceremonial cast of fishing lines following a quiet opening back in December.

Charleston County Parks and Recreation spokesperson Sarah Reynolds said the history of a pier in this location dates back to the 1930s.

Reynolds said Charleston County purchased the land in 1992 and built the “original” wooden pier, which opened in 1995. After it showed signs of deteriorating, officials closed that pier in 2020, tore it down and built a new one from scratch.

But Reynolds said they didn’t want the new pier to lose its original feel, so they decided to build it in the same footprint.

The structure is made from concrete, meaning it will last generations longer than the original, but the walkways, railings and fishing stations are all wooden.

“We knew it was so important to the Lowcountry and to so many visitors and people who have made memories on the pier with fishing and, I’ve heard so many stories of people getting engaged out there and going there after their weddings and stuff, so we knew it meant a lot to a lot of people. So we wanted it to be reminiscent and nostalgic of the previous wooden pier at the site,” Reynolds said.

The pier stretches 1,049 feet and is 25 feet wide and 22 feet above sea level. Charleston County Parks and Recreation says its amenities include a 7,500-sq.-ft. diamond-shaped platform at the end of the pier, beach access, accessible restrooms, showers, rod rentals, a gift and tackle shop and oceanfront dining at Pier 101 Restaurant & Bar.

She said the pier is being dedicated to Edwin S Taylor, a prominent member of their commission in the 1990s and an instrumental part of building the original wooden pier.

The new pier is being dedicated to Taylor once again along with honoring many others who played key roles in its construction.

She said the pier is an iconic landmark, and it is important to acknowledge people who have invested so much time into making the pier a reality.

Copyright 2023 WCSC. All rights reserved.

A months-long discussion came to an end Tuesday night as voters decided on the fate of short-term rentals on Folly Beach.

FOLLY BEACH, S.C. (WCSC) - A months-long discussion came to an end Tuesday night as voters decided on the fate of short-term rentals on Folly Beach.

Just 78 votes ended up separating the debate of the number of short-term rental licenses allowed on Folly Beach. The final vote rang Tuesday night after lines at the polls began at 7 a.m. officially capping the number of rentals, like condos and Airbnbs, to 800 across the island.

There were more than 1,200 people that voted, which is about half of the number of registered voters on the island.

“This is probably the most people I’ve ever seen vote, even in a presidential election, that I can remember,” Goodwin said.

This special citizen vote tallies 655 voters for the cap on short-term rentals and 577 against it.

This issue stems back to October when a citizen petition to cap the number of short-term rentals came to city council, which was then put up to a citizen vote.

Ann Peets, who supports the cap, says she doesn’t want the permanent residents leaving because of disruptive renters.

“It’s a very tight-knit community and we feel like if people keep leaving that’s going to be lost,” Peets said.

Those against the cap on rentals, like Elton Culpepper, says he doesn’t want his kids to not have a rental option on inherited property.

“I feel like the property value will go down and they should be able to short term rental it,” Culpepper said.

Bill Murschel says he’s been renting on the island for over 25 years. Although he could not vote, he says he worries how this would affect his vacations.

“I don’t want to be priced out of the market,” Murschel said. “I want to have plenty of choices when I contact a local real estate office and pick my place.”

Mayor Goodwin says he signed the original petition and voted for the STR cap.

“We know they bring in tax dollars,” Goodwin said. “We never want to see short term rentals go away totally. It’s just where do you want your city to be in reference to a community versus businesses.”

He was asked if he thinks this will have any effect on people investing on Folly Beach in the future.

“I don’t think so,” Goodwin said. “You know, before this got started, like I said, the number was 800. That didn’t stop people from buying and selling out here... Nobody’s going to be totally happy with the vote. So, now it’s just a matter of the community coming back together and healing and let’s get on with the rest of the world.”

Goodwin says it will take several years for the number of current STRs to dwindle down to 800 from either people selling their property or no longer renewing their licenses. He says there’s currently around 1,200 on the island.

The vote will be certified on Thursday and will immediately take effect.

Copyright 2023 WCSC. All rights reserved.

FOLLY BEACH — A longtime Charleston-area dining concept is on its way to the Edge of America at a prominent corner where numerous other restaurant venues have come and gone over the years.

Perry Hospitality Group LLC is adding a second Coconut Joe’s Beach Grill to the island’s beachside culinary scene as its 11th dining venue in South Carolina.

The restaurant operator on Feb. 9 paid $5.1 million for the two-story space currently occupied by Irish pub St. James Gate at Center Street and West Ashley Avenue, in the town’s commercial district about a block or so from the beach.

The property previously was owned by John Teevan through Stretford End LLC of Charleston, which bought the site for $2.175 million in 2020, according to land records.

St. James Gate, named for a section of the Irish capital of Dublin known for beer and breweries, has operated on the site since 2015.

The latest deal included the property and the restaurant business.

Teevan said he decided to sell after Perry Hospitality Group approached him with a proposition he believed was more than favorable.

“The other party made me a good offer,” Teevan said.

He noted the transaction occurred quickly and he hasn’t decided what his next move will be.

Perry Hospitality plans to move quickly to get the site ready in time for beach season.

“That corner is a great location,” said Perry Freeman, president. “There’s a ton of people and not a lot of places for people to go to eat. For a restaurateur, it’s the perfect location. I think we will do well in that spot.”

The property has been home to a number of dining venues over the past couple of decades. It once was a wine bar and restaurant called Eleven Center Street Wine and Gourmet followed by a seafood place named Conch.

Then came a country-cooking diner dubbed Center Street Kitchen and another seafood eatery called Folly Beach Shrimp Co. that included an upstairs dance club. For the past eight years, it’s operated as St. James Gate.

Since the beginning of the year, the roughly 8,000-square-foot venue has been closed for a previously scheduled mid-winter facelift. Freeman hopes to open the new Coconut Joe’s by April 1, “if all goes to plan,” he said.

During the next two months, Freeman and business partner Aaron Perry, plan to revamp the back patio area, which is now on the ground floor only. They want to add a second outdoor level.

“We are completely taking out what is there now and putting in two stories so there will be seating outside on the top and bottom,” Freeman said.

Once the new Coconut Joe’s opens, it will continue to operate with two indoor floors, but the second level will include a game room with arcade-type features.

“We want it to be more family-friendly,” Freeman said.

In addition to Coconut Joe’s on the Isle of Palms, which Perry Hospitality acquired in 2020, the restaurant group also owns Lawrence’s Seafood Co. next to Coconut Joe’s, The Shelter in Mount Pleasant and seven Charleston Sports Pub sites in the Lowcountry and Upstate.

FOLLY BEACH — In the beachfront community known as the “Edge of America,” many residents and property owners remain on edge as a vote approaches that could limit vacation rentals.

A referendum is scheduled Feb. 7. While there are only two options on the ballot — to cap short-term rentals, or not — there are many sides to the impassioned debate.

Along the streets weather-worn homes stand next to remodeled beach cottages and framework for new homes. Yards are lined with blue and white signs — each serving as a clear stance supporting or opposing a short-term rental cap that often varies from neighbor to neighbor.

The city prides itself as “Charleston’s Beach Town,” but some are second-guessing where to draw the line on overnight visitors. Much like Folly Beach’s new $14 million concrete-and-wood pier that was inspired by the original wooden one, the city is learning to balance its past and future. Residents are grappling with the reality that the very thing they love about their community is the same thing that attracts more than a million tourists a year, according to city officials.

Some see short-term rentals and the flow of transient guests staying in them as a threat to the established community and its longtime residents who don’t want new neighbors every week.

Should non-owner-occupied short-term rental licenses be capped at 800? It’s up to the city’s 1,886 registered voters to decide in what many call a defining moment for Folly Beach and how it manages come-and-go visitors.

The question of how to manage short-term rentals is not new. Property owners have had to apply for short-term rental licenses since 2018. There are currently over 1,100 active licenses.

A city committee was formed and provided recommendations to City Council on short-term rentals, but those recommendations were not followed up on. Some residents took their concerns to the City Council last summer. Feeling unheard, a group started a petition to create an ordinance that would establish a cap and distinguish owner-occupied and investor-owned short-term rentals. The ordinance failed in City Council and now is up for referendum vote, per state law.

Under the proposed ordinance, those with short-term rental licenses may continue to operate and keep their licenses until there’s a transfer to a new owner or family member.

No new short-term licenses would be granted until the number of active permits falls below 800 — a figure based on the number of pre-pandemic licenses in 2020. A waiting list would be established for future permits, but there are a lot of unanswered questions about further specifics or effects the limit would have.

A community divided

When Sam Meader and his wife moved to Folly Beach more than a decade ago, they started fixing up run-down cottages to rent. It was before the Airbnb era, so they’ve always had a hands-on approach in managing their rentals. They now own eight units near their home and manage several rental properties.

“Folly Beach has always been a beach vacation and retirement community, but this issue has polarized and pitted neighbor against neighbor,” Meader said. “Caps have come before the council multiple times, and each time they’ve said no. Last year, they passed wide-sweeping regulations and enforcement changes on short-term rentals. Why don’t we let that play out before we rush to cap it?”

On the other hand, resident Chris Bizzell believes Folly Beach has reached a “tipping point.”

“Right now, we’ve got a decent mix, but I think if we fail to act at this point it is going to become imbalanced,” Bizzell said. “It’s really a vote between what kind of community you want to live in. This is a first step. I can see this being amended down the road as the situation evolves, because it will change as the community evolves, too.”

Two advocate groups have been vocal about the vote. Folly United, led by Steve Goodwin, opposes the cap proposal. Save Folly’s Future, led by John McFarland, is pushing for the cap. Neither leader will vote on the matter, as they are nonresidents.

Both groups share concerns of preserving the future and personality of their beach community. They just disagree on how to do that.

Some have called it a cap, not just on short-term rentals, but on tourism.

McFarland, a West Ashley resident who has long-term rentals on Folly Beach, said he believes the sense of community in the barrier island city is at stake, and they should focus on attracting renters and residents who will live on the island as their primary residence.

“We are at a defining point,” McFarland said. “I think that citizens realize that if we don’t draw the line and say enough is enough, we will continue to lose that sense of community one lot at a time.”

McFarland said he and others worked hard to get the issue to a referendum vote so “every resident has an opportunity to voice their opinion.”

Goodwin, who is not related to the city’s mayor with the same last name, said he believes there are other ways to accomplish the same goal.

“A ‘no’ vote doesn’t mean we shouldn’t address the challenges the community is facing, but it means we can take our time and find better solutions,” he said.

Goodwin, a Daniel Island resident who also is a local property manager for iTrip Vacations, said the cap can hurt families in neighboring communities that have invested in a Folly Beach home as a vacation home or retirement investment paid for by short-term rental income.

“Short-term rentals provide an avenue for middle-class families to afford a property for their vacations, retirement and to pass on to family,” Goodwin said. “If you eliminate that option, you’re left with real estate that only the ultra-wealthy can afford.”

No vote for off-island property owners

Kate Rowland Peabody lives on Johns Island but has two short-term rental properties on Folly Beach.

“We own these properties and we visit often because we live so close,” she said. “We are part of this community, too. We care about this community, too. We have a stake in this as property owners, yet we don’t get the opportunity to vote?”

Michael Scarafile said that as a real estate agent for Carolina One Real Estate, property manager and short-term rental owner, the issue is not as clean-cut as it appears. He said he is cautious of an ordinance passing this way without more market research in place to inform the community of potential impacts.

“There are better ways to balance preserving Folly’s sense of community and protecting Folly property owners’ rights,” Scarafile said. “Each house is a story, a person. There are ways to regulate and enforce short-term rentals without capping them. Caps or bans address the symptoms of an issue, they do not solve the root cause.”

Scarafile and others have compared the situation to Sullivan’s Island, which banned short-term rentals more than two decades ago. While an all-out ban isn’t on the table for Folly Beach, he said restrictions of that nature not only divide communities but could bring unintended impacts on the housing market by changing the buyer pool.

What happens after the vote?

A “yes” vote signifies the voter supports enacting a cap on short-term rentals. A “no” vote means the voter does not agree with a cap.

Mayor Tim Goodwin said that if the referendum passes, the proposed ordinance becomes adopted as any other city ordinance would be if it had gone through City Council. If that happens, City Council does have the ability to challenge it or amend it at a later time.

“It’s binding in the fact that it creates an ordinance, but not binding in the fact that nobody could ever change it,” the mayor said.

Tim Goodwin said that managing visitor-related challenges is a delicate balancing act that cities across the state are each trying to figure out.

Legal challenges are possible no matter which way the vote goes. One lawsuit has already been filed.

A builder that operates five short-term rentals with two more being built sued the city over its pause of issuing short-term rental licenses. Michael Riffert with Folly East Indian Co. said in the suit that the moratorium does not comply with constitutional law, and that short-term rentals are a zoning issue which is exempt from the referendum process.

Folly Beach Baptist Church, located at 77 Center St. in Folly Beach, will be the only polling location. Polls will be open from 7 a.m. to 7 p.m.