Saturday, July 26, 2014

Ephesian Ventures, LLC to Build Timeshares at Edgewater on Broad Creek, Hilton Head Island?

On June 13, 2014, Mr. Pat Duggar, Vice President of the Board of the Directors from the Residences on Edgewater off Marshland Road on Hilton Head Island, wrote to Steven Riley, Hilton Head Town Manager, regarding the effects of certain proposed revisions to the land-management ordinances. Mr. Duggar states: "we vehemently object and oppose the increase in density for WMU district from 12 units per acre to 16 units per acre" in Hilton Head's new land-management ordinance zoning draft.
Broad Creek Edgewater, LP, a residential community off Marshland Road on Hilton Head Island, was placed in Chapter 7 bankruptcy on May 9, 2007. For $9,000,000.00, Ephesian Ventures, LLC purchased 16.01 and 7.64 acres of land from the bankruptcy trustee for Broad Creek Edgewater, LP, and a Quit Claim Deed was filed with the Beaufort County Register of Deed's Office on July 7, 2008.

Ephesian Ventures, LLC was registered with the South Carolina Secretary of State's Office as a Foreign LLC on June 11, 2008. On June 3, 2008, an Ephesian Ventures, LLC was registered as a Nevada limited liability company. A Google search reveals reports that K. Michael Barfield, attorney affiliated with the Coral Resorts timeshares on Hilton Head Island, is or was a manager of the Ephesian Ventures, LLC of Nevada. Thomas Vernon, attorney formerly affiliated with Coral Resorts timeshares, is the registered agent for Ephesian Ventures, LLC of South Carolina.

The Residences on Edgewater total twenty-three (23) units and are adjoined by an unfinished and apparently abandoned pool and building. As a result of the proposed density change, Mr. Duggar argues that "[n]eighborhoods like ours, with adjoining, unfinished construction sites, would change from a reasonable density to something more like a nightmare. Our adjoining site is to be timeshares."

In Early 2011, Residences on Edgewater obtained permission from The Town of Hilton Head to construct a tabby walkway and brick areas outside the twenty (23) unit building. The Town permitted the same, and construction began. Shortly thereafter, Chester C. Williams, Esquire, on behalf of Ephesian Ventures, LLC, opposed the construction, and the Town rescinded permission as to the tabby walkway and brick areas and voided approval for the pool.

Michael Mogil, Esquire, attorney for Edgewater Homeowners Association, requested an appeal, which was continued several times by agreement with Ephesian Ventures, LLC. At a July 20, 2011, Town of Hilton Head Planning Commission Meeting, Mr. Mogil informed the Commissioners and town staff that he had the previous day filed a lawsuit in the Beaufort County Court of Common Pleas relating to the appeal. As a result, the parties agreed and the Planning Commission passed a motion that the appeal be continued until the Court of Common Pleas issues a decision in Mr. Mogil's recently-filed lawsuit.

Since the filing of the lawsuit, Stephen Spitz, Esquire, has appeared as counsel for Ephesian Ventures, LLC, and Ward Borden, Esquire, has appeared as counsel for Edgewater on Broad Creek Owners Association, Inc. The status of the litigation is unknown, but stay tuned for Part II where I will review the Courthouse filings. I am informed that a hearing relating to this matter is scheduled at Hilton Head Town Hall on August 26, 2014 at 5:30 p.m. All of the information contained herein is from publicly available documents on the internet and by FOIA.