Palmetto Dunes Resort transfers to Property Owners

BY PETER HULL, The Island Packet

Published Wednesday, December 28, 2005

Palmetto Dunes property owners will assume management of the Hilton Head Island community's common areas Jan. 1 after owners Greenwood Development Corp. agreed to hand over the reigns five years early.

The property owners association will assume responsibility for maintaining the resort's infrastructure, including roads, lagoons, common spaces, beach walks and security. The association will employ about 50 people, officials said.

Greenwood will continue to operate its commercial interests within Palmetto Dunes, the company said, including golf courses and tennis facilities.

The move is part of a settlement from a lawsuit brought by property owners nearly six years ago over the handling of funds collected by Greenwood. The lawsuit claimed the company refused to provide an accurate account of how it spent owners' assessments since 1979 when the company bought the development from Phipps Land Co.

The lawsuit was dismissed three years ago after both parties agreed to transfer ownership and management responsibilities held by Greenwood to the property owners by the end of 2011. With the development close to build out, both parties agreed the time was right to hand over control at the start of the year, said John Betts, Palmetto Dunes vice president of resort operations.

The association will manage an annual budget of between $3 million and $4 million, said Phil Burger, president of the property owners association. Assessments next year for the community's 2,200 owners will increase by about 5 percent, Burger said. Assessments this year were $995.