BEAUFORT – A divided city council on Monday gave in to growing public calls to slow the process of selecting a new concessionaire to operate the city’s piers.
The Beaufort Board of Commissioners voted 3-2 (with Commissioners Charles “Bucky” Oliver and Dr. John LoPiccolo voting against) to terminate all talks and withdraw a letter of intent addressed to “the interested company with respect to the future management of the Beaufort Docks.”
That’s how Commissioner Paula Gillikin phrased her two-part motion. The second part of her motion was to direct the City Manager and/or Assistant City Manager to work with Beaufort Waterfront Enterprises, the current and long-time operator of the docks, on a 12-month lease extension, which must be approved by the Board of Commissioners no later than September 9.
Related: Beaufort residents criticize dock operator selection process
The measure was a response to public demands for transparency in the selection process, which took place behind closed doors because city officials considered it an “economic development” matter and therefore confidential.
People here found that specious, especially given the importance of the city’s waterfront. The move was also in response to objections to apparent conflicts and litigation in other coastal communities involving the “interested entity.” Despite the secrecy, the name of that entity – Safe Harbor Marinas – was the worst-kept secret in Beaufort for weeks.
Outside, the rain was pouring down. The meeting room, the old depot on Broad Street, was packed with residents opposed to the officers’ actions. Even more were in a separate, redundant room with CCTV. There was a rousing applause, followed after a short delay by more applause in the redundant room.
Gillikin’s motion followed Mayor Sharon Harker’s opening of a “general discussion on next steps” regarding the docks. Harker said it was time for “a new dialogue” to answer the public’s questions.
Some information was publicly available and caused concern among those attending the meeting.
Safe Harbor Marinas is a $2 billion company that was purchased in 2020 by Sun Communities Inc. Sun Communities is a Michigan-based real estate investment trust with approximately $17.4 billion in assets.
Gillikin said she had thoroughly studied the company’s activities elsewhere and concluded that the company’s philosophy “may not be the best” for the city.
“And my research, interviews, coffee chats with people, visits to marinas and delving deeper into the philosophy of each company have led me to this conclusion,” Gillikin said to further applause.
Beaufort residents and business owners have told Coastal Review that their concerns about Safe Harbor were primarily based on the company’s ownership and control, which is more focused on shareholder returns than Beaufort’s character and economy. They feared that Safe Harbor was in trouble from the start because the company had already purchased Jarret Bay Boatworks and the surrounding complex. Some speculated that the company had its eye on the waterfront for large yachts to be serviced at Safe Harbor Jarret Bay, where there is not enough space for a marina.
People have expressed concern about further gentrification of Beaufort and that its commercial base of locally owned shops and restaurants could become unattractive to those arriving aboard one of the “superyachts” that Safe Harbor supplies at other locations.
Speakers who took to the podium during the lengthy public comment portion of Monday’s meeting echoed those concerns. Commissioner Melvin Cooper said he heard them, too. Cooper said he “fully supports” Gillikin’s motion to “terminate” the MOU.
“I know Commissioner Oliver would appreciate us continuing the discussion with the third party,” Cooper said, adding that there had been pressure to “continue, move forward” with the process when there was time for a more careful and open decision. “The citizens of the city we represent are asking us to step away from this, and I think we need to listen to them.”
Oliver said he strongly supported the lease extension but saw no benefit in terminating the letter of intent. He had asked Gillikin to amend that part of her application, but she refused.
“You may never get anywhere,” Oliver said in his appeal to Gillikin. “I’m not promising anything, but I see no reason to stop considering this matter based on what I’ve heard. I can’t find any substantive reason to do so, and I think it could potentially be detrimental to us if we stop the negotiations, depending on how they turn out.”
Participants in the public hearing said they
Beaufort resident Barry Slade said he has worked in marina and slipway management and waterfront development. He said the situation here is familiar to him. He said marina operators come in all shapes and sizes and tend to specialize in what they do best, and the city should choose one that fits its needs. But he worried Beaufort didn’t look far enough in its RFP to find the right operator.
“Remember, Beaufort doesn’t have a downtown arena,” Slade said. “What we do have is a priceless downtown waterfront that is the heart and soul of our city.”
He said that when he contacted people in the industry, “it didn’t take many phone calls to find out that some didn’t even know about Beaufort’s RFP and had never received a bid package. These companies would be happy to submit a bid if given the opportunity. Many of these firms are well-financed, actively seeking projects and place a high value on relationships, not just profits.”
Signs saying “Keep Beaufort Docks Public” can be seen all over the city.
Commissioner LoPiccolo criticized the signage during the meeting, calling it a “misrepresentation” since the docks have been privately owned for over 40 years.
“We have someone who manages these docks and has been kind enough to allow day boaters to use these docks. However, I want to make sure the city understands that these docks are private,” LoPiccolo said.
LoPiccolo said his careful review of the matter convinced him that a third-party concessionaire was necessary because significant improvements to the port would be needed, which would amount to about $13 million, and a deep-pocketed company, rather than the city, could bear the cost.
City Finance Counsel David Cheatwood spent much of the early evening session outlining his reasons for opposing city-funded improvements through the various mechanisms available.
Mayor Harker invited Cheatwood, CEO of First Tryon Advisors of Charlotte, to discuss public financing options. Cheatwood explained that there are three basic types of public bonds in North Carolina: general obligation bonds, restricted bonds and municipal bonds, but he advises against them because these types of projects pose a financial risk to the city.
“Looking ahead and knowing what’s coming, I think that’s a big risk for the city to have to simultaneously fund other, more traditional projects that are more basic services,” Cheatwood said.
Oliver said those in attendance had never heard the funding information before. He thanked the mayor for presenting the information to the public, as commissioners felt the lack of education to city residents “infuriates us as a body.”
“When I don’t get information, I get frustrated too,” Oliver said.
LoPiccolo said the board spent “countless hours in closed session going over minute details” and nothing raised suspicions.
“This is not being controlled by a dark hand. It is not being controlled by any forces that we know the city is unaware of that are driving this. It is the commissioners here who are leading the charge,” he said.
“So I hope you trust us and that we can make the right decisions for this city. And we’re listening to you,” LoPiccolo said, also receiving applause.
Cooper said during the meeting that the closed sessions were not an attempt to hide anything, but were based on general North Carolina law.
“It has become apparent that we have been in these closed sessions for far too long without the community hearing from their commissioners,” Cooper said. “Residents can be assured that whenever the decision is made, it will be made in a public session and with full disclosure.”
