Bluffton residents unite against developers in a legal battle.
Residents of the Palmetto Bluff community in Bluffton, SC, have united against their developers, filing a lawsuit that claims deceptive practices. Over a dozen homeowners allege they face unfairly imposed dues that largely target short-term rental properties, while hotel guests receive preferential treatment for club amenities. As the lawsuit unfolds, it exposes concerns over the management of promised recreational facilities amid ambitious development plans, raising questions about the true intentions of the private equity firms now overseeing the community.
Residents of the picturesque Palmetto Bluff community in Bluffton, SC, have joined together to take a stand against their developers, filing a civil lawsuit that accuses them of running a “deceptive and costly hoax.” This legal action, initiated by a Charleston law firm, Ford Wallace Thomson, on April 12, has landed in Beaufort County and has already sparked interest and concern among local homeowners.
The plaintiffs in this lawsuit include over a dozen property owners who claim they have been hit with “illegally-imposed dues” that they argue are unfairly burdensome. Many of these homeowners are particularly upset about what they see as selective targeting against their short-term rental properties. They feel like they have been placed at a disadvantage, as hotel guests reportedly receive preferential treatment when it comes to enjoying club facilities.
Palmetto Bluff, sprawling over approximately 20,000 acres nestled between the scenic May, New, and Cooper rivers, is home to around 800 residences, with an additional 400 properties currently under construction. The grand vision for the community includes the potential creation of up to 4,000 homes, which certainly paints an ambitious picture. However, the recent developments raise questions about the intentions behind this growth.
In a fascinating twist, private equity firms South Street Partners and Henderson Park Capital Partners took the reins of Palmetto Bluff last year. According to details shared in the lawsuit, South Street owns 10% of the venture and is said to manage daily operations. An internal document has surfaced claiming that they plan to flip the community for a profit, potentially exiting by 2028. This short-term profit strategy could mean big changes for the current residents.
Recreational facilities, including the luxurious Montage Palmetto Bluff resort and the May River Golf Club, are central to the appeal of the community. However, the lawsuit indicates that homeowners are shouldering the financial burden for these lavish amenities. The homeowners’ association board, allegedly dominated by developer appointees, makes decisions impacting residents without their input.
Marketing materials promised exceptional amenities, but homeowners now contend that they are being hit with sweeping costs. Residents are required to maintain club memberships, usually accompanied by hefty joining fees, alongside annual dues that pile up to thousands of dollars. This challenges the notion of ownership, as many homeowners feel they lack true say over the amenities.
Compounding their frustrations, homeowners dedicated to short-term rental properties face extra fees that they say aim to diminish competition with the resort hotel. With club amenities becoming overcrowded with hotel guests, residents report having limited access to the facilities they support with their dues.
The homeowners’ lawsuit is pursuing damages, attorney fees, and a judicial order to halt what they consider unjust practices outlined in Palmetto Bluff’s governing documents. The developers assert that their strategy aims to align with long-term benefits for residents. They claim that their planned changes primarily affect short-term and hotel guests rather than permanent residents. But as this legal battle brews, it will be interesting to see how the dynamics within this charming community will evolve.
As these homeowners fight for their rights, the future of Palmetto Bluff hangs in the balance. Will they win the battle against what they deem unfair treatment? Or will the developers continue on their profit-driven quest? Only time will tell.
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