Council approves workforce-housing zoning changes and rezones Northpointe site; developers prepare site plan
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Summary
Hilton Head Island council unanimously approved changes to the land management ordinance to allow workforce housing conditional uses in RM-12 districts and rezoned the Northpointe site to RM-12, clearing a path for a town-led Northpointe workforce-housing project expected to include roughly 57 units at 502D60% AMI.
Town Council voted unanimously May 20 to amend the Land Management Ordinance to add workforce housing as a conditional use in RM-12 (moderate-to-high-density residential) districts and to rezone the Northpointe property from Parks & Recreation to RM-12.
The ordinance language approved by council adds conditional-use criteria for workforce housing in RM-12, including minimum acreage and location requirements tied to major arterials and an option for density bonuses and increased impervious surface in exchange for workforce units. Staff said the conditions narrow where the provision will apply; town planners identified three parcels that meet the RM-12 and location criteria for this incentive: Palmetto Bay Villas (Palmetto Bay Road area), an Oaks Villas area in the North Ridge neighborhood, and the Northpointe site.
Council then voted 7-0 to rezone the Northpointe parcel to RM-12. Town staff and the developer presented an updated site layout and elevations demonstrating a Class A neighborhood design with approximately 57 units, a mix of 1-, 2- and 3-bedroom units, 56% open space and onsite amenities. The development partner 1 Street Residential has invested in design, obtained a coastal zone consistency permit from the state, and staff said a 65-year ground lease is planned; staff described income targeting at 50%-60% of area median income and an on-site property manager.
Town planning and development staff said the project will next proceed through design-review and site-plan approvals; staff anticipated a forthcoming ground-lease agreement and an expected groundbreaking by year-end if approvals and financing align.
Councilmembers praised staff and the developer for the neighborhood-scale design and open space. The vote advances the town27s toolbox to incentivize on-island workforce housing while moving a tangible project toward construction.
Ending: Staff said they will return with site-plan and lease paperwork for council consideration and will continue neighborhood and traffic connectivity work around Gumtree Road and the site access.