An August 19, 2024 letter addressed to the City of Beaufort’s legal team has been shared with Beaufort Insider. It was requested that we not share the full letter or the names of the attorney or company represented.
In an August 19, 2024 letter, an attorney representing a local LLC raised serious concerns about the City’s management of the Waterfront Park, specifically as it relates to the lease of the marina to Safe Harbor. The letter, which has not received a response within the requested seven-day period, highlights potential violations of a decades-old Property Management Agreement (PMA) that governs the use of the park.
Background: The Property Management Agreement
The local LLC, that has business interests near the Waterfront Park, is questioning the City’s compliance with the PMA signed on June 30, 1976. This agreement, involving the City of Beaufort, the South Carolina Department of Parks, Recreation, and Tourism, the Economic Development Administration (EDA), and the Bureau of Outdoor Recreation (part of the Department of Interior), laid out strict conditions for the use of federal funds to develop the waterfront area.
The PMA specified that the Waterfront Park property, developed with federal assistance, was to be used exclusively for public outdoor recreation. Any conversion of the property to other uses would require prior approval from the federal agencies involved. Additionally, the agreement prohibited the sale, lease, or transfer of the property without federal consent.
Key Issues Raised in Letter to the City’s Attorney
The letter from the local LLC’s attorney details two significant instances where the City violated the PMA:
1. Lease Agreements with Private Entities: The City has entered into lease agreements with American Cruise Lines and Safe Harbor Marinas (SHM Beaufort LLC). The letter points out that the docking of cruise ships and the leasing of marina facilities to Safe Harbor, a private entity, could constitute a conversion of the property from public to private use. This is in direct violation of the PMA, which mandates that the property be used for public recreation unless federal approval is obtained.
2. Private Use of Public Land: The letter highlights that Safe Harbor operates the marina, including fuel tanks, parking spaces, and other facilities, as private amenities for its members. The marina is gated and inaccessible to the general public, raising concerns that the City has effectively privatized a portion of the Waterfront Park, contrary to the original intent of the PMA.
Ongoing Negotiations and Lack of Response
Adding to the controversy, the letter reveals that the City is currently in negotiations with Safe Harbor to potentially expand the marina. These discussions have raised alarms about further entrenching private use of a public resource, which would deepen the City’s violations of the PMA.
The local LLC requested that the City confirm whether it obtained the necessary federal approvals for these lease agreements and clarify whether the ongoing negotiations with Safe Harbor comply with the PMA. The letter warned that if the City failed to respond within seven days (August 26), the local LLC would escalate the matter to federal authorities, including the Secretaries of the Interior and Commerce.
As of the time this article was published, the City of Beaufort has not responded to the letter, leaving significant legal and ethical questions unanswered. This silence only amplifies concerns about the City’s transparency. The lack of response only serves to raise more questions and suspicion.
What’s Next?
The lack of response from the City could have serious repercussions. If the local LLC follows through on its intent to bring this matter to the attention of federal agencies, the City could face investigations or even legal challenges. This situation underscores the importance of transparency and accountability in maintaining public trust which is further eroded by the city’s silence.
Beaufort residents and stakeholders will be watching closely to see how the City Council addresses the lease with Safe Harbor during tonight’s (August 27) City Council meeting. The way the City Council handles the first reading of an ordinance to retroactively ratify the lease with Safe Harbor will be telling. Will the City Council respond to concerns? Will they listen to local residents and businesses? Will they address legal concerns with regard to the Safe Harbor lease?
To read more about the City of Beaufort’s lease with Safe Harbor: Troubling Developments in the City of Beaufort’s Lease with Safe Harbor Marinas; EDITORIAL: A local Beaufort attorney weighs in about the Safe Harbor lease
