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PBNA Communications

  • Newsletter #9: A review of 2024 POA (PB Preservation Trust) budget and dues

    05/15/2024 8:09 AM | Richard Cedrone (Administrator)

    Dear PBNA Members,

    This newsletter addresses questions we have received regarding the annual dues from The Palmetto Bluff Preservation Trust (PBPT), which is effectively our POA (short for Property Owners Association).  The POA is governed by a Board of Stewards, which is controlled by our developer, South Street Partners (SSP).  A full description of this entity is contained in the “entities” FAQ on the PBNA website.  Given the confusion around the PBPT name, we will simply refer to it as our POA.

    The PBPT owns, operates, and maintains the Common Areas (other than Club properties) and operates under our governing documents.  It is funded largely though mandatory annual assessments on property owners (amounting to $4,515 per property in 2022, $4,876 in 2023, and $5,315 for 2024), and commercial operations (e.g., Buffalo’s, RT’s, etc.), and if elected by the PBPT’s board of stewards, unsold platted lots.  Gate pass revenue and Design Review Board (DRB) fees are also significant revenue sources.  The most recent statements, for 2022, were finally released in February 2024.  You can access these 2022 audited financials on the PB Member website under the” POA-Preservation Trust” tab.

    Observations on the 2024 budget includes:

    • Assessments continue to rise despite having accumulated a surplus of $ 6.3 million from 2019 to 2022 (2023 was essentially a breakeven year for the POA).
    • Given these hefty surpluses, SSP elected to change polices (effective 2022) so that it no longer pays assessments on their platted but unsold lots.  Under the prior accounting election, the developer contributed an average of $476k annually (2018-2022).  Under the new accounting election, SSP is responsible for any POA deficits, which are unlikely given high reserves and continued growth in sold lots and annual POA fee increases.  In effect, SSP has shifted nearly one half a million dollars annually on to current property owners.
    • Implicit in this budget is an expectation of only 24 additional assessment-paying properties in 2024 vs. 2023, which would be the second lowest number of new lot sales since 2012.  Either the Board of Stewards are being conservative or SSP is pessimistic about 2024 new dirt sales.
    • 2024 will be the first, recent year, in which reserve funds will be used to pay for repairs and maintenance.  Previously, repairs and maintenance were paid out of the annual PBPT revenues.  While there is much debate amongst property owners around the right level of reserves, we should all be aware that the POA plans to spend a portion of the reserve funds for the repair or replacement of our common assets in 2024.
    • Our POA has budgeted to spend $ 383k for legal fees this year, most of which will likely be used to defend against the two legal actions currently underway.  Note that the PB Club has budgeted an additional $400,000 in legal expenses.  SSP is responsible for the remaining third of the estimated $1.2 million legal fees.  In sum, we estimate that property owners are shouldering approximately 65 percent of ongoing ligation defense costs.
    • Of course, the POA’s costs grow as Palmetto Bluff becomes more developed and there are more roads, bridges, and lagoons to maintain.  In 2024, the only significant changes in the POA’s scope of duties are the addition of the new neighborhoods and the added inland waterway acreage which were formally “turned over” in March.

    Going forward, what should property owners be concerned about, given where we are and SSP’s stated intentions?

    • We can expect our assessments to continue to increase.   Given the POAs current financial cushion, we should expect that SSP will maintain their current election to cover any deficits vs. the alternative of paying assessments on their unsold but platted homesites.
    • Further, many of our roads are nearing the point when they will need to be milled and repaved.  This will likely be a significant cost, which must be funded either through annual POA assessments or by spending down reserves (or both).  Either way, property owners will pay.
    • While financial transparency has improved under SSP’s ownership, many questions remain regarding cost efficiency and allocations.  While we are comfortable about allocation methodology vis a vis the POA, allocations are a more significant component of the PB Club’s budget.  We will address this next.

    We will continue to post observations of the financial information we receive from SSP and our POA.  If interested, we encourage you to read the prior analysis of 2016-2021 which is also on the PBNA website.  This report goes into more granular detail on the mechanics of how the PB Preservation Trust operates financially.  


  • Status of Palmetto Bluff Development Plans

    04/25/2024 11:39 AM | Richard Cedrone (Administrator)

    The purpose of this email is to update you with the status of the various development activities that South Street Partners (SSP) currently have underway, as best we can understand by reviewing documents, speaking to the Town’s planning staff, and other knowledgeable parties.  This message addresses four projects: Long Island (aka Plat 25; Anson neighborhood), Block M-4 Subdivision, Block M-6 (both in the Moreland Forest/Crossroads area) and the new Anson 18-hole golf course.  Shout outs to the Town’s staff and Gray Ferguson for ensuring the accuracy of this message.

    Background.  The overall development of Palmetto Bluff is controlled by the Planned Unit Development (PUD), which was adopted in 1998 (and subsequently amended a few times) which established the current 4000 housing units (or equivalent) cap.  Plans for new neighborhoods and features (e.g., roads, amenities) are NOT reviewed by the Town Council or Planning Commission; instead, they are reviewed by the Town of Bluffton’s Growth Management and Watershed team in a three-step process: 1) preliminary development plan application (a fairly high level review); 2) storm water permit (also involves the SC Dept. of Health and Environmental Control, or DHEC), and 3) final approval of the project or subdivision (very detailed).   New lots are platted and approved in the last step, and only then can the newly created lots be sold.

    Long Island.  Last November, South Street Partners submitted a preliminary plan application (step 1, per above) for the development of Long Island, including 31 home lots, a neighborhood street consisting of permeable pavers, and the conversion of the existing earthen causeway into a 14-foot-wide road with two seven-foot-wide lanes.  The application also calls for traffic lights on either end of the causeway to allow the road to be closed as needed for emergency vehicles.  This preliminary plan was approved with conditions, and the Town staff has yet to receive the full storm water plan for review.  Given Long Island’s location, the DHEC review process is likely to involve their Coastal Zone Consistency team, which is generally considered a tougher process.   

    The storm water permit sought by SSP will only address the runoff issues related to the road; per the current plan, each Long Island lot owner will need to satisfy the storm water abatement in their building permit process.  The stormwater submittal must assess the feasibility of this.  Given that Long Island is a narrow island with a high-water table, this may prove challenging (mitigated somewhat larger average 2.5-acre lot size).

    While the stormwater standards involve many technical criteria, the two most significant ones involve 1) “routine” heavy rains (95th percentile, or 1.95 inches of rain in a 24-hour period), and 2) 100-year storms (11 inches of rain in 24-hour period).  The first requires that this 1.95 inches of rainfall is retained on site, usually accomplished via Best Management Practices (BMPs), such infiltration basins, bioretention, etc.  The second, 100-year standard, requires that all storm water is safety conveyed through the site without causing damage/inundation to structures.  Furthermore, the stormwater plan must demonstrate that post-development stormwater discharge rates do not exceed pre-development rates for up to the 100-year, 24-hour storm, and the site must be designed to intercept and treat stormwater runoff to at least an 80 percent reduction in total suspended solids, 30 percent reduction in total nitrogen, and 60 percent reduction in bacteria.  According to SSP, this “decentralized” stormwater approach is a preferred BMP vs. the more commonly used centralized basins, ponds and such.

    Block M-4 Subdivision.  This month, SSP requested the Town’s final approval (step 3, per above) of this new neighborhood which will consist of 81 lots on 79.4 acres.  Once this is approved, the lots will be available for sale.

    Block M-6 Subdivision.  This month, SSP submitted a preliminary development plan application (step 1, per above) to the Town.  This neighborhood will consist of 26 single family home lots on 48.9 acres. 

    New 18 Hole Golf Course.  SSP has conditional stormwater approval for the course (step 2).  Once SSP receives final stormwater approval from DHEC, final approval of the application (step 3) can occur.

    PBNA Volunteers


  • Town Hall Questions and Crossroads Golf Updates

    02/19/2024 1:16 PM | Richard Cedrone (Administrator)

    Dear PBNA Members,

    This email has two parts:

    1. A list of potential questions for SSP at Wednesday’s Town Hall
    2. An update on Crossroads Golf membership.

    Town Hall Questions

    Questions for SSP at the upcoming town hall

    • What is the status of the Master Planning work with Hill Howerton?  Will property owners have any input?
    • What is the expected timing for completion of a new fitness facility?
    • Will it be part of the base club?
    • Will you be commissioning an independent member survey, like the ones we used to have under prior ownership?
    • Are there plans for a traffic light at May River Road and the entrance to Palmetto Bluff?
    • Why haven’t 2022 audited financials for our POA, the PB Preservation Trust, not been posted on the Member website?
    • Your efforts to improve fitness classes has been well received but has made availability an issue.  What are your plans to address?
    • Please provide an update on Anson, the new 18-hole course, and the road to Anson.
    • We understand a group of homeowners who have poor, or no cell service has been advocating for a new cell town for over a year.  Can you provide an update?
    • Please provide an update on the ongoing disputes with the PBCA as well as the second group contesting the waiver of mandatory base club membership. 
    • The significant increases in dues and assessments are creating cash flow pain for some property owners; will you provide a quarterly payment option?
    • What are your plans for additional walking and cycling paths?

    Crossroads Golf—Update/Correction

    In our last newsletter (#5, distributed February 13th), we relied on the initially published rules, which we subsequently learned were updated to be less onerous for existing Golf Club members.  While existing golf members can still choose to “downgrade” to the May River Golf-only membership and not join Crossroads, they no longer completely forfeit the ability to become a member at the second 18-hole golf course.  SSP’s revisions now provide a short window to reverse a downgrade decision.  Full details are in the “downgrade” document on the Member website under the Golf Club Membership tab.  The most relevant new language is below:

    For a 90-day period after the opening of a new 18-hole golf course, (i) May River Tier I Members who downgraded from Golf Tier I Membership by March 31, 2024, may upgrade back to Golf Tier I Membership by submitting an upgrade request, without payment of an additional membership joining fee and without being subject to the waiting list to acquire a Golf Tier I Membership, and (ii) May River Tier II Members who downgraded from Golf Tier II Membership by March 31, 2024 may upgrade back to Golf Tier II Membership by submitting an upgrade request, without payment of an additional membership joining fee.

    This new “downgrade” agreement contains an additional option for May River members to rejoin Golf Club membership after the 90-day window if the Club has not reached its cap (along with payment of any delta in joining fees).  We urge any interested member to review the documents and FAQs on the member website. The Palmetto Bluff Membership office is available to answer any questions you may have regarding your membership questions.

    PBNA Volunteers

    Bob Morette, Arian Ellis, Helen Ryan, Ford Bartholow, Frank Riddick, Allen Roth, Richard Cedrone

    If you have friends and neighbors who are interested in joining, please tell them to go to our website, www.pbnabluffton.com, and click “join”.


  • PBNA Newsletter #5

    02/11/2024 9:00 AM | Richard Cedrone (Administrator)

    Dear PBNA Members,

    This newsletter has six topics: 

    1. Update and summary of ongoing litigation and mediation matters.
    2. Crossroads Golf
    3. Shout-outs.
    4. What we’re working on
    5. Our new PBNA Board Volunteers
    6. Final Thoughts.

    1. On-going litigation and mediation efforts

    As you may know, there are two separate disputes underway between property owners and PB’s owner, South Street Partners (SSP).  The newer dispute involves the May 31, 2023, action by SSP to make membership in the Palmetto Bluff Club optional.  The second dispute, led by homeowners who identify themselves as the PB Community Advocates, continues.  Our understanding of the status of each is summarized below:

    Mandatory Membership Waiver.  Last July, a group of property owners submitted a formal complaint regarding SSP’s unilateral announcement making membership optional.  Per our governing documents, this is the first step in a formal dispute.  The heart of this complaint is that SSP, in making such a fundamental change to PB Club membership, was required to use the amendment process, outlined in section 4.2 of the Recreational Covenant, and obtain an instrument signed by a majority of Owners of residential units and The Founder.  This did not happen. Instead, SSP relied on a waiver provision (section 4.5) to promulgate the new policy, essentially saying that they no longer would enforce the provision.  A core motivator for these property owners is the need to defend owners’ legal rights now and prevent adverse precedents which may impinge property owner rights in the future. 

    As of last month, the mediation process concluded without resolution.  Our understanding is that the parties may be discussing a shortened legal process for adjudicating the dispute.  Overall timing is TBD.

    ST Rental/PBCA Litigation.  As you may recall, litigation was initiated in 2022 between the group known as PB Community Advocates (comprised partly of, but not exclusively of, owners of properties in the short-term rental areas).   This litigation continues, and given the nature of the litigation, little new information is publicly available.  However, there is nothing that would lead us to believe that we can expect a resolution any time soon.  For brevity’s sake, a summary of the issues which we published in our Novenber newsletter is included in the APPENDIX below. 

    Caveat!  Please remember we are not lawyers, and these updates are for informational purposes only and are notlegal advice; instead, all information, content, and materials in this email and on our website are for general informational purposes only.

    2. Crossroads Golf

    Like many of you, we are disappointed to learn that the new 9-hole golf course is not part of the base PB Club, despite the fact that most of the people we have talked with were under the impression that Crossroads was the next great new amenity for all Palmetto Bluff Club members.  That said, SSP is a business and has the legal authority to set rules and fees.  One wonders if future amenities will be part of the base Club or will require additional dues and fees.

    Existing Golf Club members have expressed concern that—while they have no incremental initiation fees for Crossroads—their annual dues are now $4,000 higher per year.  Importantly, if they chose to forego extending their Tier 1 membership to Crossroads, they forfeit the right to extend their membership to any new courses.  This is viewed, at least by some, as coercive.  Clearly the long waiting list for Tier 1 memberships provides SSP with significant leverage. 

    Please note that Golf Club membership categories have expanded from two to five:

    • Tier 1 and Tier II members who sign up for Crossroads will now be members in what is now called Palmetto Bluff Golf Club.
    • Tier 1 and Tier II members who do not join Crossroads will now be members in the May River Golf Club.  Note that these members will/have forfeited their rights to automatically extend their memberships to any new golf courses without a new initiation fee. 
    • The new fifth category, Sports Membership, is for folks who only want to join Crossroads.

    For more details, please review the documents under the Golf tab on our member website.

    3. Shout-outs

    While many of you are aware of important contributions by our neighbors, we wanted to applaud three in particular:

    • Lee Leonard and Penny Baldwin Leonard for leading the efforts to Save the Grace.  Leveraging their skills and passion for boating, Lee, Penny and others—along with the support by our owners--brought this majestic piece of Palmetto Bluff tradition and lore back to our community.  And also, thanks to the 45 families who each contributed $5,000 and became founding members of the Grace Club.
    • For the last year, Kent Flury has led a group of over 80 property owners to improve cell phone coverage in the newer neighborhoods.  Working with SSP partner Jordan Phillips, there is commitment for a temporary cell tower as a new cell tower is built and becomes operational later this year or in early 2025. 
    • For the past several years, Bob Newbert conceived and planned innumerable Boat Club excursions and events.  Bob did this with great cheer, patience and at considerable personal expense.  Bob’s meticulously planned trips are no doubt responsible for driving the Boat Club’s popularity as well as many happy memories.    Going forward, Wilson Landing will be planning and running Boat Club excursions, and they have big shoes to fill.   Kudos to Captain Bob.

    We make these shout outs as a reminder that we are fortunate to live amongst so many talented, caring, and energetic people who devote their time, talent, and treasure to make and preserve Palmetto Bluff a special place.

    4. What we’re working on

    After a long holiday season filled with fun, family and joint replacements, your PBNA volunteers have several things on our agenda:

    • We will email a list of potential questions for SSP before the Town Hall
    • We will update our historical analysis of our POA’s finances (Preservation Trust) once the 2022 audited financials are finalized and posted.  Please note that we already have a four-year analysis and comparison of POA on the PBNA website, under FAQs.
    • We are digging into the Club’s finances, which is a priority given the rapid acceleration of dues in recent years.
    • Anson update
    • Member survey

    Please let us know if there were other topics you would like us to address.  Fortunately, we have expanded the volunteer group, and we welcome having additional capacity and energy to further our mission.

    5. New Board Volunteers

    We are delighted to announce two new PBNA volunteers who are excited to help further our work.

    Frank Riddick.  Frank recently retired after a long business career as a CEO for private equity owned businesses.  Frank and his wife Carol purchased property in Palmetto Bluff in 2012 and became full-time residents in 2017. The couple has three grown sons and two dogs.

    Allen Roth.   Allen recently retired after 40 years as a structural engineer focused on forensic engineering and strategic advising. After selling his engineering firm, Alan and his wife Kim Mazzei-Roth relocated to River Road in 2022. He enjoys tennis, fitness classes, bowling, swimming, and the bourbon/cigar club. He has three children and seven grandchildren who thoroughly enjoy vacationing in Palmetto Bluff.

    6. Finally…. a few things in closing

     ·         Please feel free to forward this newsletter to other PB property owners, and please help us drive awareness of PBNA’s mission and activities.   While PBNA has over 228 households and 406 members, numbers matter so please encourage your friends and neighbors to join.  

    • Also, please help address any confusion your friends and neighbors have between PBNA and the litigation group that goes by PB Community Advocates (PBCA). 
    • For more detail on our mission, please go to our website: pbnabluffton.com.  For any questions, you can contact us at pbna2020@gmail.com, or call one of the volunteers listed below.
    • Please join us in giving a shout out to our website sponsors (which are displayed at the bottom our landing page), as their contributions help support our on-going efforts.  In part due to their contributions, current PBNA members automatically renewed for 2024 for no cost.
    • Also, please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com.

    PBNA Volunteers

    Bob Morette, Arian Ellis, Helen Ryan, Ford Bartholow, Frank Riddick, Allen Roth, Richard Cedrone

    If you have friends and neighbors who are interested in joining, please tell them to go to our website, www.pbnabluffton.com, and click “join”.

    APPENDIX

    ST Rental/PBCA Litigation.  Both sides have lists of claims and counterclaims that may somewhat obscure the central issues.  To us, the PBCA makes three key claims:

     

    • Claim #1:  The PB Club is inherently unlawful, as it cannot be both (a) a private for-profit company owned entirely by the developer, while at the same time (b) be mandatory for PB property owners to join and pay what the developer choses, without any rights.  Response by SSP:  Outside of the legal proceedings, SSP now has waived the requirement that PB property owners join the Club, so it is now optional, which may (or may not) render claim #1 moot.  SSP’s legal authority to unilaterally waive Club membership is being challenged by a second group.  Let’s call this the “mandatory membership waiver” matter.  

     

    • Claim #2:  SSP changed the rules to prohibit short-term rental guests access to Club facilities, which PBCA viewed as an improper change of the rules.  Response by SSP: Outside of the legal process, SSP implemented new access rules and fees for renters.  This may (or may not) render claim #2 moot as well.

     

    • Claim #3:   Under the governing documents, the Club was supposed to be offered to the members for purchase at the time SSP acquired PB (under a right of first offer provision), and this unlawfully was not done.  This claim also asserts that the Club should have a non-profit, mutual benefit company structure, which is common in the Lowcountry.   SSP Response: In its FAQ, SSP pushes back on the legal basis of this claim and asserts it has continued economic interest in the Club amenities for which it has not fully reclaimed their value in marketing new lots.  SSP has also stated that it believes the right of first offer was not applicable given the structure of the transaction.

    There are a host of additional claims/assertions which we think are secondary.  But, for those interested in more, we recommend you go to the respective source documents.  Again, for further information, please email us or reach out to one of the volunteers.


  • Call for 2024 PBNA Volunteer Board Members

    11/29/2023 12:32 PM | Richard Cedrone (Administrator)

    We're wrapping up our second year of PBNA's revival, and we're proud of what we've accomplished. Our goal from the very beginning is to provide timely information in a pragmatic way not prejudiced in favor of a particular side. We have taken a just the facts approach. Our goal is to empower our community with knowledge so you can be informed and act if you choose as property owners in the Palmetto Bluff community.

    But we know there's more to do. We need more volunteers to continue to serve the needs of the community for accurate and timely information of changes to our Palmetto Bluff community, and how those changes will affect all of us as homeowners.

    If you want to be an active part in informing, shaping, and protecting our amazing community's future please join our board as a volunteer.   

    Don't miss this opportunity to make a difference!

    Please e-mail our Nominations Committee chair Eric Sutherland directly at sutherland.ec@gmail.com.

    PBNA Volunteers

  • PBNA Newsletter #4: Litigation Update, Call for interested 2024 Volunteers, and 2024 Dues

    11/02/2023 9:13 AM | Richard Cedrone (Administrator)

    Dear PBNA Members,

    We hope everyone had a great summer and we’re glad to see so many friends back on property.

    First, a clarification to the prevalent rumors, social media posts and misinformation:  PBNA is an independent group of over 400 property owners whose dues support our fact-based educational activities, which we conduct primarily though our web site, which provides a huge depository of PB information, including our founding documents, and prior communications, FAQs on specific topics, member meetings, outside speakers, direct conversations, and email alerts on emerging and on-going issues.  PBNA is NOT associated with a group of plaintiffs, generally represented by PB Community Advocates (PBCA), NOR are we associated with a second group of property owners who are in formal mediation with SSP.   And lastly, we have no affiliation with PB’s owner, SSP.  For more detail on our mission, please go to our website: pbnabluffton.com.  For any questions, you can contact us at pbna2020@gmail.com, or call one of the volunteers listed below.

    This newsletter has three topics:

    1) update and summary of ongoing litigation and mediation matters

    2) a call for volunteers to be 2024 PBNA board members

    3) an update on 2024 dues and website sponsors.

    On-going litigation and mediation efforts

    First, one thing to clarify:  we have been troubled by the tone of many communications, postings, and emails swirling around on this topic which have been unneighborly at best and divisive at worst.  The PBNA volunteers respect everyone’s rights to enforce contracts and property rights, and we hope and trust that tolerance and mutual respect will prevail. 

    Second, the founding documents and the agreements we all signed when we became property owners are “developer friendly” in the extreme.  As property owners, we comparatively have few rights, and many we talk with believe it is important to defend the few contractual rights we do have.

    Third, we are not lawyers, and this update is for informational purposes only and is not intended to constitute legal advice; instead, all information, content, and materials available in this email and on our website are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. 

    Litigation.  As you may recall, the litigation filed last year between the group known as PB Community Advocates (comprised partly of, but not exclusively of, owners of properties in the short-term rental areas) continues.   Given the nature of the litigation, little new information is publicly available.  However, there is nothing that would lead us to believe that we can expect a resolution any time soon.  Both sides have published “analyses;” SSP has a 9-page FAQ about the litigation (subsequently removed, but available on the PBNA website).    PBCA continues to update their website. 

    Both sides have lists of claims and counterclaims, that may somewhat obscure the central issues.  To us, the PBCA makes three key claims:

    • Claim #1:  The PB Club is inherently unlawful, as it cannot be both (a) a private for-profit company owned entirely by the developer, while at the same time (b) be mandatory for PB property owners to join and pay what the developer choses, without any rights.  Response by SSP:  Outside of the legal proceedings, SSP now has waived the requirement that PB property owners join the Club, so it is now optional, which may (or may not) render claim #1 moot.  SSP legal authority to unilaterally waive the membership term is being challenged by a second group.  Let’s call this the “mandatory membership waiver” matter.  More on this below.
    • Claim #2:  SSP changed the rules to prohibit short-term rental guests access to Club facilities, which PBCA viewed as an improper change of the rules.  Response by SSP: Outside of the legal process, SSP implemented new access rules and fees for renters.  This may (or may not) render claim #2 moot as well.
    • Claim #3:   Under the governing documents, the Club was supposed to be offered to the members for purchase at the time SSP acquired PB (under a right of first offer provision), and this unlawfully was not done.  This claim also asserts that the Club should have a non-profit, mutual benefit company structure, which is common in the Lowcountry.   SSP Response: In its FAQ, SSP pushes back on the legal basis of this claim and asserts it has continued economic interest in the Club amenities for which it has not fully reclaimed their value in marketing new lots.  SSP has also stated that it believes the right of first offer was not applicable given the structure of the transaction.

    There are a host of additional claims/assertions which we think are secondary.  But, for those interested in more, we recommend you go to the respective source documents referenced above.  Again, for further information, please email us or reach out to one of the volunteers.

    Mandatory Membership Waiver (MMW).  As you may recall, on May 31st SSP notified PB property owners by email of a significant change, making PB Club membership optional.  In a July 12 PBNA email to you (available on the PBNA website, under communications), we let you know that a group of property owners submitted a formal complaint (explained below) to SSP, per the process outlined in PB’s covenants.  We understand that the negotiation process, which has a limited time window, is likely to come to an end soon and without a resolution.   The group is considering next steps.

    The heart of the complaint is that SSP, in making such a fundamental change to PB Club membership, was required to use the amendment process, outlined in section 4.2 of the Recreational Covenant, and obtain an instrument signed by a majority of Owners of residential units and The Founder.  This did not happen. Instead, SSP relied on a waiver provision (section 4.5) to promulgate the new policy.  So, the complaint group filed a mediation request, which is step one in our PB dispute resolution process.  The complaint group believes this is a fundament legal property owner right, and if “we” allow “them” to make fundamental changes unilaterally now, then we risk giving up our legal rights for future unilateral changes.  The reasoning is:  If SSP can “waive” this important property owner's protection provision without challenge, what’s to stop SSP from “waiving” other important provisions in the future?

    For those who want to learn more about, or participate (named or unnamed) in, this effort, please contact us at pbna2020@gmail.com and we will put you in touch with the leaders.

    Call for 2024 PBNA Volunteer Board Members

    As we complete the second year of PBNA’s “reboot”, we want to make sure we fulfill our mission and continue to evolve as the needs, size and complexity of our community grows.  If you are interested in joining our effort, please let us know and we can explore.  Eric Sutherland, the chair of our Nominations Committee, will soon email the PBNA membership specifically looking for engaged property owners to explore deeper participation.

    2024 Dues and Sponsors

    Please join us in giving a shout out to our website sponsors, as their contributions help support our on-going efforts.  In part due to their contributions, current PBNA members will automatically renew for 2024 for no cost.  Consistent with current policy, new members will pay a $125 fee for the household.

    Please feel free to forward this newsletter to other PB property owners.  Also, please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com.

    PBNA Volunteers


  • Update on SSP’s May 31 announcement

    07/12/2023 6:40 AM | Richard Cedrone (Administrator)

    Dear Members:

    This is a follow up email to our recent messages regarding South Street Partners’ (SSP) May 31 email announcing a major change to the structure of the Palmetto Bluff Club (PBC).  

    We want to let you know that some Palmetto Bluff property owners have submitted a complaint to SSP.   As you may recall, our governance process requires that the first step to contest an action by the developer is to begin a 60 day “alternative dispute resolution” process.  This process is outlined in Chapter 18 of our Community Charter, which you can find on the Member website (click the POA-Preservation Trust tab, and then click on Governing Documents). 

    Our understanding is the complaint states that SSP does not have the authority to make PB Club membership optional without a majority vote by property owners.  A relevant document is the 2003 Declaration of Recreational Covenant for Palmetto Bluff, which 1) makes membership mandatory; and 2) has a clear amendment process. 

    Relevant sections:

    • Mandatory Language.  Mandatory membership is mentioned several times in the Declaration.  One example is Section 2.2 which states “…Covenant to Maintain.  The Owner(s) of each Residential Unit shall maintain the Community Membership issued for their Residential Unit …as long as they hold title…”
    • Amendment Process.  Section 4.2 states “…this Declaration may be amended only by an instrument signed by the Club Operator and by Owners of a majority of the Residential Units and by the Founder…” (emphasis added). 

    Further, we understand that the property owners are asking SSP to 1) negate the waiver or offer a mutually acceptable remedy; and 2) suspend all purported deadlines under their new alleged policy while the matter is negotiated and mediated.

    Additional Palmetto Bluff property owners may join this complaint process.

    Please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com.  

    PBNA Volunteers


  • SSP Membership Announcement Update

    06/15/2023 4:23 PM | Richard Cedrone (Administrator)

    Dear Members:

    This is a follow up email to our message last week regarding South Street Partners’ (SSP) May 31 email announcing a major change to the structure of the Palmetto Bluff Club (PBC).   This email addresses five topics:

    1)       Why do we think this is an important matter?

    2)       What can concerned property owners do (procedurally)?

    3)       Exactly which amenities will a property owner lose access to if they resign their membership?

    4)       Beyond local management, with who else can you share your concerns?

    5)       What is the heart of this matter?

    Why is this important?  First, as your PBNA volunteers, you should know that the PBNA intends to maintain our “just the facts” posture. That said, we continue to believe the unilateral change (without a member vote) to make PBC membership optional is a very significant change with major potential downstream consequences.  Based upon what we have been able to understand, we do not believe SSP has the authority under our governing documents to make this change without a majority vote by property owners.  The relevant document is the 2003 Declaration of Recreational Covenant for Palmetto Bluff, which 1) makes membership mandatory; and 2) has a clear amendment process. 

    • Mandatory Language.  Mandatory membership is mentioned several times in the Declaration.  One example is Section 2.2 which states “…Covenant to Maintain.  The Owner(s) of each Residential Unit shall maintain the Community Membership issued for their Residential Unit …as long as they hold title…”
    • Amendment Process.  Section 4.2 states “…this Declaration may be amended only by an instrument signed by the Club Operator and by Owners of a majority of the Residential Units and by the Founder…” (emphasis added). 

    Management asserts they are making this change as a “waiver,” under section 4.5.  Initial legal conversations suggest this section does not give SSP unilateral authority to make such a substantial change.  Rather, it is a technical provision essentially stating that past failures to enforce rules (e.g., late fees, etc.) does not prohibit them from enforcing rules going forward.

    We understand that concerned property owners should formerly register their complaints under our Community Charter’s procedures within 30 days of SSP’s May 31 email.

    At this point, no one knows how many PBC members will resign their memberships and the resulting financial impact of those resignations.   The onerous “re-joining” terms (whether by a current owner or a new owner) will influence near-term decisions.  Regardless of short-term impact, the longer-term consequences may be considerable if SSP establishes that they can make major changes without adhering to our foundational legal documents. 

    What can be done?  Under our Community Charter, the first formal step to contest an action by the developer is to begin a “alternative dispute resolution” process, which can be initiated with or without the help of lawyers.  The steps are outlined in Chapter 18, which you can find on the Member website (click the POA-Preservation Trust tab, and then click on Governing Documents).  Individual property owners alone, or with other property owners, can initiate such a process.  Based upon many conversations, we expect one or more parties to initiate formal disputes.  Interested property owners are arranging a call with outside counsel, and we will communicate details as we learn next steps.

    Exactly which amenities are involved?  Palmetto Bluff is a complicated community with the POA/Preservation Trust, PBC, Montage, SSP’s commercial operations (RTs, Buffalos, Boat Club, etc.) and the Conservancy.  Two things can help:  1) pasted below is a matrix detailing which amenities are part of PBC; and 2) there is a FAQ on the PBNA member website that offers additional detail. 


    To whom can I express my thoughts/concerns?  In our email last week, we provided the local management contacts (Gray Ferguson and Rob Duckett) but many members have asked for the contact information for the SSP partners.  We encourage you to email SSP’s managing partner, Patrick Melton, to request an in-person Town Hall meeting so that we may properly ask questions and share our concerns.  You may recall that at the last Town Hall, held on November 15, 2022, he pledged that they will hold Town Halls when they have important news.  The SSP partners’ emails are:

    Patrick Melton pmelton@southstreetpartners.com

    Jordan Phillips jphillips@southstreetpartners.com

    Chris Randolph crandolph@southstreepartners.com

    Will Culp wculp@southstreetpartners.com

    What is the heart of this matter?  Different people have and will likely continue to have different opinions and thoughts about whether anything should or can be done.  Clearly, as mentioned above, the first step is to conduct a Town Hall with the Palmetto Bluff property owners.  In addition, we see two paths:

    • One option is to simply contest SSP’s legal authority under our documents to make membership optional without a member vote.  If this is successful, SSP would have the option of conducting a member vote (per our documents) or reverse the change and reverting to mandatory membership.  If a majority of members approve of eliminating the membership requirement, then we will have spoken as a community. 
    • Another option is to press for making the PBC a member owned not for profit.  While member ownership and associated governance is the likely outcome for most communities as they become largely built out, Palmetto Bluff is only one-third developed and “turnover” to residents is probably many years away.  In the meantime, many property owners want to find a way to better align the interests of PBC members with its owners and operators. 

    Please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com.  

    PBNA Volunteers

    Bob Morette, Arian Ellis, Helen Ryan, Ford Bartholow, Eric Sutherland, Richard Cedrone

    If you have friends and neighbors who are interested in joining, please tell them to go to our website, www.pbnabluffton.com, and click “join”.


  • SSP Membership Announcement

    06/06/2023 2:37 PM | Richard Cedrone (Administrator)

    Dear Members:

    Last week, a South Street Partners (SSP) email announced a major change to the structure of the Palmetto Bluff Club (PBC) by making membership optional.  Until now, membership in the PBC has always been mandatory. 

    This is a very significant change with major potential downstream consequences. 

    In addition, SSP promulgated new PBC and amenity access rules, procedures and fees for visitors using Short Term Rentals (STR).  

    Like you, your PBNA volunteer leaders have many questions around these policy changes.  This email focuses on the PBC membership change, and we are sharing our current understanding.  We will update you as we learn more. 

    In the meantime, we encourage you to reach out to

    Rob Duckett (rduckett@southstreetpartners.com ) and

    Gray Ferguson ( gferguson@palmettobluff.com) with your thoughts. 

    Understanding and Concerns

    • The change fundamentally undermines one of our key governing documents.  The 2003 “Declaration of Recreational Covenant for Palmetto Bluff” makes membership mandatory and states that PBC will be operated for residents’ benefits.  As stated in section 4.2, this Covenant "may be amended only by an instrument signed by the PBC Operator and by Owners of a majority of the Residential Units and by the Founder…” (emphasis added).  No vote occurred.
    • Management asserts they are making this change as a “waiver,” under section 4.5.  Initial legal conversations suggest this section does not give SSP unilateral authority to make such a substantial change.  Rather, it is a technical provision essentially stating that past failures to enforce rules (e.g., late fees, etc.) does not prohibit them from enforcing rules going forward.
    • Making PBC membership optional may drive significant and rapid escalation of PBC dues, especially if many property owners resign their memberships. 
      • Since there are many property owners who do not have completed homes, or live here part time, the potential loss of dues revenue is unknown and could be significant. 
      • In addition, there are 110 properties paying PBC dues by people who already own another house/lot and are paying dues on those properties as well. This change may lead them to drop the redundant memberships. 
      • Further, rapidly escalating dues may compel more members to resign, creating a negative spiral which could threaten the PBC’s viability.
    • Many residents have told us they believe making the PBC optional will fundamentally alter the nature of Palmetto Bluff, by creating two classes of residents, which is not consistent with the vision they bought into when deciding to purchase property here. 
    • This change opens the door to SSP selling non-resident PBC memberships.
    • Making PBC membership optional may address one key issue in the on-going litigation brought by a group of PB residents known as PB Advocates, but it may simply create additional litigation.  For background regarding this on-going litigation, please refer the FAQ we published last year on this topic. You can find it on www.pbnabluffton.com in the member section under FAQs.
    • Elimination of the membership requirement makes bulk lot sales more economic and feasible.  While SSP is on record at a recent Town Hall that they have no plans for bulk sales, many believe it was an important component of their initial business plan.  For background on the bulk sales matter, please refer to the FAQ on this topic located in the member section at www.pbnabluffton.com.   
    • Elimination of the membership requirement also makes land speculation here more attractive and less risky.  By avoiding the upfront joining fees, land investors can acquire lots more cheaply, and their cost of carry is lower due to the absence of annual PBC membership dues. 

    Please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com

    PBNA Volunteers

    Bob Morette, Arian Ellis, Helen Ryan, Ford Bartholow, Eric Sutherland, Richard Cedrone

    If you have friends and neighbors who are interested in joining, please tell them to go to our website, www.pbnabluffton.com, and click “join”.


  • Dominion - Power Reliability on Palmetto Bluff

    03/22/2023 3:19 PM | Richard Cedrone (Administrator)

    Dear Members:

    Last fall, two thirds of PBNA members who responded to our survey cited power reliability as a priority issue.  Subsequently, we met with a member of our Town’s Council as well as two representatives from Dominion Power.  The purpose of this message is to share what we have learned in three areas: Reliability, Capacity, and Power Quality.

    Reliability.  We were delighted to learn that Dominion knows about outages at the customer level, and the Dominion folks shared—as proof--outage data on our personal residences.  For example, this writer’s house had 18 outages in the 1,239 days I’ve resided here, but 5 outages accounted for most of the 675 total minutes.   One was caused by a tree limb within PB, another by a car hitting a pole, a third by lightning, a fourth caused by storm damage to a major feeder line into Bluffton (affecting 1000s), and the last one was unexplained.  To obtain data on your residence, contact Dominion Customer Service (numbers are below).

    Within Palmetto Bluff, we have buried power lines within the residential areas, so we are protected (relatively) from storms compared to similar communities.  That said, two structural matters affect our power reliability:

    • While power lines within the residential portions of PB are underground, power lines which bring power to our community are overhead and more exposed to storm and vehicular damage.  Also, within the undeveloped and/or construction areas of Palmetto Bluff, we have overhead power lines which are also exposed.  Dominion’s policy is to trim trees on a five-year cycle, and Palmetto Bluff is scheduled for tree trimming in 2023.  Also, the overhead power lines along May River Road that supply PB had a “mid-cycle” trim last year. There are no plans to bury these lines; State of South Carolina utility regulations do not permit utilities to recover the incremental cost of underground lines. 
    • Power distribution lines are more stable when the lines are in “loops” so that an interruption from one side effects fewer customers as power can come from the other side.  Unfortunately, given the relative “youth” of PB, many of the primary feeder lines within PB are “radial” or one-directional.  So, an interruption at one point will affect all the down-line customers.  Over time, Dominion plans to “close the loop” on multiple radial lines as Moreland Forest is developed further and Anson becomes a reality.  In sum, the maturing of PB should make our power network more reliable and redundant.

    In the “for what it’s worth” category:  We learned than many of the breaker fuses manufactured and installed between 2017 and 2020 have systemic flaws causing “nuisance tripping”.  If you have one or more circuits that trip often you might want to check with a trusted licensed electrician. 

    Capacity.  Palmetto Bluff is supplied by Dominion’s Pritchardville substation, which is along May River Road, and is expected to have sufficient capacity even as our part of Bluffton continues to grow rapidly.    In October 2022, Dominion brought an additional Bluffton substation (known as the May River substation and located close to Old Town Bluffton) on line.  This expanded local capacity and took load off the Pritchardville substation.  As growth continues in our part of Bluffton, Dominion will continue to shift load to the new substation, and they expect PB residents will have no capacity worries. 

    Power Quality.  Many residents complain about power dimming, surges and other inconveniences, which often knock electronics and appliances offline.  If this is an issue for you, Dominion will help by inspecting your house’s infrastructure to diagnose the issues. 

    Reaching Dominion.  The Dominion folks we met with suggested calling 888-333-4465 for downed and/or sparking power lines and 800-251-7234 for all other inquires.  Communication will likely be most effective if you log specific times, dates and durations of any outages or other issues. 

    Please let us know if you have further questions; you can reach us by email at pbna2020@gmail.com.  

    PBNA Volunteers

    Bob Morette, Arian Ellis, Helen Ryan, Ford Bartholow, Eric Sutherland, Richard Cedrone


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