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Council rezones Northpointe site and approves RM-12 workforce-housing incentives; developer aims for 157 mixed-income units

Town Council, Town of Hilton Head Island · May 20, 2025
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Summary

Town Council unanimously rezoned the Northpointe site to RM-12 and approved language to allow workforce-housing conditional uses in RM-12 (minimum 5 acres and arterial frontage conditions). Developer presentations described a 157-unit, mixed-income project (60%–150% AMI) with a planned ground lease and potential late-2025 groundbreaking.

Council unanimously approved two related items designed to accelerate workforce housing on the island: a text amendment to Title 16 of the Land Management Ordinance to allow conditional workforce housing uses in RM-12 districts that meet specific location and size criteria, and a rezoning that converts the Northpointe site from parks and recreation (PR) to RM-12.

Staff described the ordinance as an incentives-based tool for sites meeting minimum conditions (generally at least five acres and located along a major arterial). "The conditions are a minimum of 5 acres in size and that it be located along or on a major arterial," staff explained, and they identified three properties that meet the criteria, including the Northpointe site.

Developer representatives and staff presented conceptual site plans and elevations for Northpointe. Ben Brown (town staff/project lead) said the Northpointe proposal would deliver approximately 157 units of workforce housing in a mixed-income model with on-site property management, functional open space and a mix of one-, two- and three-bedroom units. The presentation noted a 65-year initial ground lease and that the partner developer (1 Street Residential) had invested nearly $1 million in project predevelopment work. Brown said the project aims for site-plan approvals and design-review steps this summer and a groundbreaking late this year if approvals proceed as expected.

Council members praised the public-private partnership and the proposal—s neighborhood-scale design. The ordinance and rezoning were approved without dissent (7-0). Staff said the site will continue through planning commission and design-review board steps on its path to a ground-lease consideration and final approvals.

Why it matters: The two votes clear key regulatory and land-use hurdles for a sizable local workforce-housing project and create a path for other qualifying parcels to take advantage of density and impervious-surface incentives when they meet location and size conditions.

Next steps: The project will proceed to planning commission and design-review board this summer; staff anticipates returning to council with a ground lease and final development agreement for consideration.