The following background information was sent to members from the board via mass e-mail and was posted to the KICA website on

The following background information was sent to members from the board via mass e-mail and was posted to the KICA website on May 16, 2005.

Dear KICA Members:

As you all know, the Kiawah Island Golf Resort closed the Inn in August 2004. Several of our members have presented their views on KICA’s Internet mail list regarding the possible effects the loss of the Resort’s Inn pool and restrictions on their two other pools could have on the rental population this summer. (For an understanding of these Resort pool restrictions, please visit the Resort’s site (http://lodging.kiawahresort.com/resortbenefits.html). This discussion included ideas for additional amenities and the future of all amenities on the island.

The KICA Board of Directors announced at its May 2, 2005 meeting that we would establish a special Task Force to look at the issue of existing and future recreational amenities. The board will announce the Task Force members at its June 6^th board meeting. The scope of the task force will extend beyond the current pool issue and include a review of the island’s current and future needs for recreational amenities.

The directors have spoken to many members over the past weeks and would like to share with you some background information so all members are aware of the steps that have been taken up to this point.

In May 2004, the Managing Director of the Kiawah Island Golf Resort (KIGR) notified the regimes that the Inn at West Beach, along with its pool, would be closed in August 2004. Anticipating that this pool closure might overcrowd the Resort’s other pools at Night Heron Park and Tennis Club Villas, the Resort decided to restrict access to those two pools to its own guests and Governors Club members.

Foreseeing the potential impact on rentals in some regimes near the Inn, Mr. Prem Devadas, then the Resort’s Managing Director, attended the annual meetings of the Seascape and Shipwatch regimes on May 29, 2004. He offered to undertake construction of a pool on Seascape or Shipwatch regime property, allowing the regimes to pay back the construction costs over a specified period. The Resort’s Villa Operations Manager met with the regimes shortly thereafter to offer a five-year repayment schedule. Other nearby regimes, such as Fairway Oaks and Courtside, could pay to use the new pool, which would defray the expenses. In order to have a new pool in operation by the 2005 vacation season, a timely decision was needed. The Resort reportedly had no response from the regimes.

On December 6, 2004, a member attending the KICA board meeting about the pool access situation asked if KICA would become involved in working toward a solution to this perceived problem. On December 10, 2004, the KICA Board began plans to facilitate a meeting with Resort management and the four affected West Beach regimes. Mr. Devadas informed KICA that he had previously presented a plan to the regimes but, hearing nothing further, had assumed they had no interest in the plan presented. Still, he was happy to sit down with the President and Vice President of KICA and the regime leadership.

On January 5, 2005, a meeting was held at the Sanctuary. Those present were Fred Peterson (then-KICA President), Faith Dodge (then-KICA Vice President), Prem Devadas (then-Resort Managing Director), Vikram Sood (Hotel & Villa Manager), Dr. & Mrs. Farmer (Seascape Board of Directors), Mr. Applegate (Seascape Board of Directors), Mrs. Sybil Weekly (Seascape Property Manager), Mrs. Karen Martin (Fairway Oaks and Courtside Villas Property Manager), Mrs. Marilyn Summers (Shipwatch Villas Property Manager), Mr. Hollis Garris (President, Cottage Owners’ Association), Mr. Lewis Driskell (Fairway Oaks Board of Directors), Mr. Steve Ellis (Resort Villa Operations) and, by phone, Mr. George Galayda (Courtside).

A drawing was presented of a proposed pool to be built on regime property with an estimate for installation costs, including restroom facilities, totaling approximately $500,000. This proposal, with a location between Seascape and Shipwatch, was turned down by the Architectural Review Board (ARB). Seascape had another parcel large enough to accommodate a pool but the regime was not in favor of building there.

It was stated by several in attendance that if acceptable land could be found, the regimes would consider funding the project. Discussion ensued regarding the number of owners in the West Beach area who could potentially participate in a pool project, how to fund the project, the cost per owner, and the viability of the project if not all of the regimes participated. The regimes were to have meetings and vote on their interest in providing the funding, and Mr. Devadas was to approach the Resort owner about the possibility of providing land for this Project. Nothing further was reported on the outcome by either the Resort or the regimes regarding this plan.

In April 2005 KICA asked whether any progress had been made; it was reported to us that Mr. Devadas (who has since accepted a new position off-island at the end of March) had not gotten back to the regimes, and that the regimes either did not have enough land, or were not in favor of proposed locations.

It appears the result to date is that the regimes have not achieved consensus that they would want to fund a pool, and the Resort did not submit a proposal of property on which a pool could be built. It has also since been recognized that the lack of pool facilities affects more than just those regimes located near the Inn and/or in attendance at the January meeting.

Kiawah Island has approximately 1,157 rental units. Of these, 535 are managed by the Resort, and will continue to have access to the Resort’s pools. Of the remaining 622 rentals, 140 have access to private regime pools, leaving 482 without pool facilities for renters.

Some members have also indicated that their nonrental guests also might not have access to a pool, if the member were not accompanying them. The Sandcastle Community Center pool is specifically for the use of Association members and accompanied guests. The pool is at capacity in the summer months and the Association’s Covenants and/or deed restrict the use of these facilities to Type A members (residential).

While it is an unfortunate situation for some of our members who rely on the rental of their properties, we have heard from other members who feel the existing recreational facilities are adequate.

The board’s intent in providing this background is to bring you up to date with as much as we know about this situation. We are neighbors. We are all very attached to this island of Kiawah. If we weren’t, we would have chosen to go elsewhere. We will gain the most by working together as a community.

We will continue to keep you up to date on this issue.

Sincerely,

KIAWAH ISLAND COMMUNITY ASSOCIATION, INC.

Faith Dodge
President
23 Beachwalker Drive
Kiawah Island, SC 29455
Toll-free: 866-226-1770
Local: 768-9194
KICAadmin@kiawah-owners.org