Town and county officials briefed the Hilton Head Island Town Council May 20 on the future of the long-running William Hilton Gateway Corridor project after the South Carolina State Infrastructure Bank (SIB) board unanimously rejected Beaufort County27s request to accept a reduced-scope, reduced-cost plan.

The SIB27s May 12 vote followed months of review after a 2024 sales-tax referendum failed to produce the local funding previously promised for a $488 million corridor upgrade. Sean Cohen, town staff who presented the update to council, said SIB staff told the county their submission violated parts of the intergovernmental agreement and left key items unclear. "They rejected the proposal, at their meeting unanimously," Cohen said.

Why this matters: the SIB had committed $120 million to the larger project; Beaufort County had identified roughly $101 million in local commitments (about $80 million from the 2018 sales-tax referendum plus about $21 million in impact fees), and SCDOT had indicated an increased contribution in the range of $90.6 million to help replace the eastbound Mackay (Mackie) Creek span. With the SIB denial, county leaders have narrowed options: (a) terminate the SIB agreement and have SCDOT replace only the deficient eastbound Mackay/Mackie Creek span (the "default"), or (b) ask the SIB to reconsider if Beaufort County and SCDOT can clarify funding order, overrun commitments and schedule details.

At last night27s special Beaufort County meeting, county council voted to pursue the second option and submit amended terms to the SIB. Cohen told Hilton Head council the county has a 30-day window (a "shot clock" referenced by SCDOT leadership) to provide the revised intergovernmental agreement; town staff said they expected county council to transmit terms to the SIB as soon as its next meeting. Cohen said the town will share updates to the public as they arrive.

Council members and residents who spoke at the meeting expressed sharply different views. Several council members said they prefer bringing local sales-tax funds back to the island if the SIB funding is not available, and to use local money to address corridor intersections and island safety rather than to build partial capacity on a single span. Councilmember Desmond said building a three-lane span that reverts to two lanes later would deliver little long-term traffic or safety benefit. By contrast, some public commenters urged the county and state to step up and build the larger corridor as envisioned previously; a member of the public, identified as Skip Oakland, urged a simpler approach: "My simple take on the bridge ... is just let the state fix and pay for it."

What happens next: Beaufort County indicated it would finalize amended terms and provide them to the SIB within the 30-day window; SCDOT Secretary Justin Powell had set the timeline. If the SIB again declines the reduced-scope approach, the county is likely to return to the default path of SCDOT replacing the one deficient span while local leaders consider how to use the remaining local funds for corridor and intersection improvements on Hilton Head.

Discussion vs. decision: the town council did not take a formal vote on the corridor tonight; town staff presented the status and asked council to remain informed. Beaufort County Council took its own action to pursue an amended IGA with the SIB. Town staff and local legislators said they would continue outreach to SCDOT and the SIB while the county finalizes terms.

Context/figures mentioned in council briefing (as presented): original larger project estimate roughly $488,000,000; SIB commitment $120,000,000; county local funds about $101,000,000 ($80,000,000 referendum + $21,000,000 impact fees); SCDOT contribution indicated around $90,600,000; county engineering spent ~ $13,000,000 to date against NEPA and design work. Cohen said roughly $298.5 million remained in project funds if land contributions are excluded.

Ending: Councilmembers asked staff to report back promptly as the SIB/county process unfolds; town staff said it will distribute new information to council and to the public as soon as it is available.