Planning commission forwards rezoning and text amendment to enable Northpointe workforce housing

The Hilton Head Island Planning Commission voted unanimously to forward a package of policy changes to town council that would allow a workforce housing neighborhood on the 11.337-acre Northpointe parcel.

Ben Brown, the town’s director of strategic initiatives, told commissioners the town negotiated a development agreement with OneStreet Residential and has calibrated the site to yield about 157 rental units, a mix of one-, two- and three-bedroom apartments. "This will be an energy efficient, sustainable neighborhood with high quality architecture, high quality construction," Brown said. He added staff’s site studies indicate the property can accommodate "approximately a 160 rental units" and that the team has a plan that "we believe, will yield, a 157 units." The town is proposing a long-term ground lease and said it will contribute a $1,000,000 ARPA grant to the project.

Staff asked the commission to approve an LMO text amendment to allow workforce housing in the RM 12 district with conditions: a minimum lot size of 5 acres, frontage on a major arterial, and a 25% density bonus (up to 15 dwelling units per acre) if at least half of the units are designated workforce housing. Missy (staff) presented comparative analysis showing the proposed impervious coverage cap and density fall within ranges used by comparable coastal jurisdictions.

Commissioners pressed staff on affordability rules, site design, and the development agreement’s length. Brown said the development agreement requires tenant verification (employment on Hilton Head or an offer letter) and that at least 50% of units will be targeted between 60% and 80% of area median income (AMI). "We have entered into a development agreement... with a 65 year ground lease," Brown said, noting covenants will be recorded to keep the property as workforce housing in perpetuity.

There was public comment focused on traffic and safety near U.S. 278 and the post office frontage. Staff said engineers are preparing a traffic impact analysis even though the threshold was not formally triggered, and that the town is pursuing acquisition of 1.8 acres from the U.S. Postal Service to create a safe access and pedestrian connection to the nearby school.

The commission’s motion to forward the text amendment to town council passed unanimously; the motion was made from the dais and seconded, and the vote was recorded as unanimous. The zoning map amendment to rezone the 16 parcels to RM 12 was also recommended for approval and will now go to council for final readings and decisions.

What's next: the item will go to the Community Services & Public Safety Committee in April, town council in May, and a final reading is scheduled for mid-June; staff said site development and design review will follow and a detailed site plan will return to the commission within roughly 90 days if council approves the policy steps.