The entire Wild Dunes Resort is an economic engine for the city of Isle of Palms. The resort and individually owned vacation rentals generate hundreds of local jobs, as well as millions of dollars in tax revenue that enhances the quality of life, safety and security of all residents. The upcoming referendum to cap short-term rentals threatens the vitality of the island’s economy and may even put your own property value at risk.
From the outset, the condo-hotels along Front Beach, the purpose-built, multifamily vacation properties across Isle of Palms and the Wild Dunes Residences at Sweetgrass were each intended as short-term rentals and contribute a significant portion of the accommodations and hospitality tax revenue for the island.
While we understand the desire of some residents for a cap on STRs, as currently written, this referendum violates property rights and will directly result in a loss of accommodations tax revenue.
This referendum also infringes upon the property rights of two-thirds of IOP’s property taxpayers who are nonresidents and who pay higher property tax rates and will be unable to vote on the issue. This is effectively taxation without representation.
In addition to the direct impact of loss of tax revenue, the cap has a potentially devastating effect on families who rely on short-term rental income when faced with economic downturn or loss of primary income. This has been illustrated by the accounts of many of your neighbors who have spoken at recent City Council meetings.
Permanent residents should also consider the potential impact to their estate and legacy. As an unintended consequence of this referendum, your children or loved ones may not be able to keep an STR license upon inheriting your island home if they cannot establish permanent residency. The cap is also likely to threaten residential property values across the community. A big part of property value on IOP is the ability to offset the cost of a second home by renting it short term. The pool of buyers for houses that cannot be rented short term is much smaller. Negative effects are already beginning to be felt by other area communities that have enacted STR caps.
I compel all residents to closely examine the details of the STR cap. Vote “no” against the referendum so that a more carefully constructed solution may be crafted that maintains the cherished Isle of Palms lifestyle and supports the essential economic engine that safeguards your future.
Terri Haack is senior vice president of Lowe, part owner of Wild Dunes Resort.
