Co-Working Space Near Isle of Palms, SC

ISLE OF PALMS, S.C. (WCIV) — There are less than 25 days until a big decision is made on the Isle of Palms.

Should short-term rental licenses be capped at 1,600?

"We moved here deliberately," said Billy Lempesis, a resident of IOP, "understanding that it was a beach community. I have family here. It's always been a wonderful place. It's hard to understand the necessity of restricting short-term rentals."

Isle of Palms residents to decide on capping short-term rental licenses in upcoming vote (WCIV)

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Many people say they're still unsure how they will vote.

"There's a lot more information that people need to find out if they're not clear because there's a gray area," said Debbie Strable, a resident of IOP for 22 years. "It is not what black and white, it's not quite clear to a lot of people. And it certainly isn't maybe 100% to me."

News 4 spoke with Mayor Phillip Pounds on Friday.

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He said the city already has a little over 1,600 licenses issued.

News 4 asked him if this passes, would it impact property value and property taxes.

To that, he said he didn't think there would be an immediate effect on either one.

he also made a comparison to other Lowcountry beaches.

"If you look at what's going on at Folly Beach, who put a cap in earlier this year, you know, their, their property values have gone down, you know, pretty significantly in just a few months," said Pounds.

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Mayor Pounds said it's most important to know exactly what it is you're voting for.

"I would just encourage our residents to get educated from whatever source they use, to get their facts," Pounds said. "You know, whether it's the city's website or their couple of neighborhoods sites that have popped up. You just make sure you're educated on what your choice is."

A petition was created to get this referendum on the ballot.

Right now, IOP is the only Lowcountry beach community without a short-term rental cap.

ISLE OF PALMS — A bumper crop of yard signs has sprouted across this barrier island as voters prepare for a referendum Nov. 7 that could limit short-term rental licenses.

It’s the latest skirmish in a much broader fight over the future of these sorts of vacation usages that’s been playing out across South Carolina.

“If nothing else, we are keeping the sign business afloat,” said Mayor Phillip Pounds.

Isle of Palms is among the communities on the frontlines — all places where high demand from vacationers fuels the short-term rental business. Charleston, Mount Pleasant, Folly Beach and Beaufort limit such rentals; Sullivan’s Island prohibits them; Myrtle Beach doesn’t allow new ones in residential neighborhoods.

The Isle of Palms referendum calls for imposing a 1,600 cap on short-term rental licenses for investors and second-home owners. There would continue to be no cap for homes that are the owners’ primary residence.

It’s about preserving the island’s quality of life, say supporters. More than 30 percent of the city’s registered voters signed a petition to get the referendum on the ballot.

“We have a growing number of short-term rental licenses in residential communities,” said Randy Bell, a former councilman working with pro-referendum group Preserve Isle of Palms Now. “We are trying to maintain the one-third, one-third, one-third split between full-time residents, second homes and rental properties.”

Opponents say it’s really about property rights and property values. An investment property or second home could be harder to sell, and worth less, if there’s no certainty it could be used for short-term rentals.

“What are we trying to solve?” said Hugh Swingle, an island resident whose family business is Palm Blvd Vacation Rentals. “We just don’t see that there’s an actual problem.”

The city had issued 1,625 licenses to property owners who are not full-time residents as of early October, and if the referendum were to pass, no new ones would be available until the number drops below 1,600.

“Obviously, we don’t think it’s good,” said Ryan Buckhannon, president of the Isle of Palms Chamber of Commerce. He’s a former councilman who owns an investment property licensed for short-term rentals.

Supporters and detractors of the referendum have set up websites, put out yard signs and sent mailings.

Isle of Palms United opposes the cap and claims on its website, iopunited.com, that taxes “have to” go up and property values will go down if the referendum were to pass. That group and others claim property values plunged 25 to 30 percent on Folly Beach after a February voter referendum capped short-term licenses there at 800.

Charleston Trident Association of Realtors data gives reason to question such claims. According to CTAR data, the median price of a house sold on Folly Beach in 2023 through September was down 14.9 percent, but the median price of a condo or townhouse sold there was up 28.2 percent.

“There’s no basis for the claim that property values will plummet by 40 percent,” said Bell.

Swingle, who is affiliated with Isle of Palms United, said a cap could be a big problem for people who want to sell a property in the years ahead.

“If there were a cap in place, and you own one of those tiny condos and you went to sell it, you could have a really hard time without a (short-term rental) license,” he said.

Swingle expects the vote to be close.

Preserve Isle of Palms Now supports the referendum, which the group says on preserveiop.org is about keeping the island a great place to live and preserving its residential nature by not allowing unlimited short-term rentals.

“IOP residents are either already experiencing or can foresee future problems with water and sewer capacity, traffic & parking congestion, environmental impacts, and the availability of long-term rental housing,” the group’s website says.

The Palm Republic, an organization created by former Isle of Palms Mayor Jimmy Carroll and current Councilman Blair Hahn, has also created programming opposing the referendum. Hahn even alleged in a YouTube video that referendum supporters have talked about driving down property values in order to get deals on real estate.

The island has long been known as a place to rent a house or condo at the beach, or to have a second home that could be rented out for much of the year.

Full-time residents own about a third of the homes, and they can rent out those homes for up to 72 days each year if they have a short-term rental license. As of early October, 184 owner-occupied homes on Isle of Palms had short-term rental licenses.

“It’s a vacation spot, and has always been a rental community, to some extent,” said Pounds, the mayor, who declined to say how he will vote. “We have 1,400 condos, give or take.”

That’s a lot on an island with about 4,400 residents. Most of those condos are in Wild Dunes or former hotels in the commercial area along the beachfront, and most are for rent. Many single-family homes across the island are also licensed for short-term renters.

While full-time residents are the minority of property owners on the island, they are the only people who can vote.

The referendum is on the ballot because of a petition signed by 1,173 of the city’s 3,740 registered voters. That petition put a short-term rental ordinance before City Council, and after the council declined to pass that ordinance in July, it became a ballot referendum.

If the referendum were to pass, the ordinance would take effect.

The Isle of Palms yes/no referendum question is: “Shall the City of Isle of Palms limit the investment short term rental business licenses to a maximum of 1,600?”

Across the marsh in neighboring Mount Pleasant, which has more than 94,000 residents, just 400 short-term rental permits are allowed.

Supporters of short-term rentals hope state lawmakers will act to prohibit and invalidate any local restrictions in 2024. A measure aimed at limiting local governments’ ability to restrain short-term rentals failed earlier this year.

Palmetto Politics

Folly Beach earlier this year imposed a short-term rental cap following a referendum. Folly Beach has fewer than half as many residences as Isle of Palms, and the town now has an 800-license limit on short-term rentals.

Isle of Palms would have 1,600, plus as many licenses as full-time residents want for their homes, if the referendum were to pass. Residents will also choose four City Council members in the election, from eight candidates.

ISLE OF PALMS, S.C. (WCBD)- Erosion on the Isle of Palms continues to be a big concern for IOP city leaders and property owners.

Council members, the mayor and coastal engineering experts met Tuesday afternoon to discuss short term solutions.

The issue is so urgent that city leaders took action, approving more than a million dollars to fund short-term solutions for the erosion.

Beach erosion has long been a problem on the Isle of Palms

“There’s a lot of concern,” City councilmember Rusty Streetman said.

However, the city says it’s starting to get worse.

“Some of our residents down there have hit the critical line of 20 feet, water within 20 feet of their structure,” Mayor Phillip Pounds said.

The city has no control over one of the major causes of the erosion, king tides.

“Tides were supposed to be 6 and a half feet and with the winds and waves, it was about 8 and half, so pretty significant difference than what we were expecting,” Pounds said.

However, what leaders say they can control, is their response to the issue.

Pounds said, “We need some immediate relief and some immediate guidance to our residents down there on what they can and can’t do.”

“Beach erosion will always be here, it’s a fact of life. We live with it so we just have to try and plan as well as we can to handle that,” Streetman said.

The city approved about one and a half million dollars to continue digging sand from the shoreline for dune renourishment.

It’s a project that has been ongoing since tropical storm Idalia hit in August.

They also say they’ll use that money to bring in more sand if needed and provide sandbags for residents who need them.

Streetman said, “We also have a beach renourishment fund that is taxed onto the accommodations tax, that is targeted just for beach renourishment.”

In January, a long-term renourishment project in partnership with the Army Corp of Engineers will begin.

They’re going to rebuild some of the beach in hopes of mitigating erosion for years to come.

ISLE OF PALMS, S.C. (WCBD) – Some parking tickets on the Isle of Palms have reached $100 for minor infractions.

Now people say they’re concerned the island is price gouging.

From January 2020 to December 2022, records show that 14,000 parking tickets were issued on the Isle of Palms.

The majority were for $100 dollars, but none were issued for less than $50 dollars; prices members of the Charleston Beach Foundation say are way too high.

“I did an analysis, and found that the average ticket statewide is $30, not $100,” Founder of the Charleston Beach Foundation, Myra Jones said.

Jones filed a lawsuit against the Isle of Palms in 2020 over the ticket prices.

A judge eventually ruled that the city had the right to set the price at what they think is necessary.

“The judge noted that the state law, the South Carolina state law allows $100 fines,” IOP City Councilmember, Blair Hahn said.

However, Jones is fighting prices again, calling them excessive and unnecessary.

Jones said, “For comparison, tickets on Sullivans Island are $50 and on Folly Beach they’re $60.”

Jones is also concerned the high ticket prices could backfire and damage the island’s economy.

“We’ve hear from thousands of people who will not go to the Isle of Palms because of the $100 tickets,” Jones said.

Councilmembers aren’t concerned about the ticket prices driving people away.

Hahn said, “If you come out here on any weekend, the island is full. So, if our goal is to keep people, stop people from coming to the island, we’re doing a terrible job.”

Leaders say the ticket prices are a minor price to pay to keep the roads and citizens safe.

“We were not strictly enforcing parking, not as strict as we were this year. People were double parking, parking close to the road. Fire trucks couldn’t get through in a safe manner, police couldn’t get through in a safe manner,” Hahn said.

The Charleston Beach Foundation says they plan to take the issue to the Statehouse and introduce legislation that would not allow municipalities to write unreasonable tickets for minor parking infractions.

ISLE OF PALMS, S.C. (WCIV) — Currently, Isle of Palms has no limits on the amount of short-term rental licenses on the Island, which is something neighbors have been concerned about for years.

“We’re the only community in South Carolina coastal communities without limitations, and that includes all of the surrounding communities," Randy Bell, a former IOP councilmember, said. "You have 40 short-term rentals on Sullivan's island, 400 in mount pleasant, and maybe 100 in Charleston, but you have 1,800 here."

Isle of Palms residents rally for cap on short-term rentals: Referendum to hit upcoming ballot (WCIV)

Earlier in the month, Isle of Palms neighbors formed a grassroots petition to cap the number of short rentals at 1,600. The petition was signed by more than 1,100 residents. This led to the county verifying the petition forcing the city council to put a referendum on the ballot.

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"The residents put forth a petition, and that’s how democracy works, and we'll put that on the ballot," Mayor Phillip Pounds of Isle of Palms said. "So it’s to cap what they call investment short-term rentals. So non-full-time rental properties to cap that at 1,600, and that will be the simple question on the ballot: a simple yes or no."

With the decision now up to voters, former Councilman Randy Bell hopes the council learns to listen to their constituents moving forward.

“We’re the dry sponge in the middle of a puddle, and we don’t want to be the dry sponge anymore. We would like to have reasonable limitations well thought out by council. It should have avoided a referendum, but here we are," Bell continued. “I was on council, and I don’t care what every councilperson’s opinion is, but you’re there to represent the people that put you in office."

For the next upcoming election, there are four council seats open.

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