HISTORY OF SUN CITY HILTON HEAD
(1991-2002)

During 1991-1992, Del Webb began a serious search for land east of the Mississippi River.  With Webb firmly established as the preeminent developer of active-adult communities in the Sunbelt part of the country, corporate planners were intent on positioning future development in other well-established retirement corridors.  The drive for land outside of the Sunbelt was threefold:  (1) Large contiguous land parcels were becoming increasingly more difficult to find in the southwest; (2) a huge number of retirees were very comfortable in other parts of the U.S.; and (3) the future onslaught of the baby-boomers demanded a more global acquisition of land.

According to national and regional marketing surveys at the time, the I-95 corridor, linking mid-west and northeast cities to the Florida retirement havens was the venue to pursue.  While Florida remained the crown jewel in the retirement setting, overcrowding and increasing crime statistics along Florida’s east coast was starting to have an adverse effect on retiree relocations.  The routinely typical drive from Point A in the north to Point B in Florida was beginning to be altered by “Let’s look at Point C”.  The barrier islands from Brunswick, GA to Myrtle Beach, SC were seen as significant potential markets to develop.  The key for a Del Webb Sun City was volume access...and that necessitated a close link to I-95.

Historically, Sun Cities were large communities demanding 4-5000 acres.  Union Camp, a subsidiary of Duke Power, owned approximately ¼ million acres of timberland in/and around the lowcountry of SC, and they were feeling the results of an economically depressed market.  Creatively searching for ways to convert some of their land assets to cash, they were eager to talk to Del Webb planners. 

As a state, South Carolina was also feeling the impact of a severely depressed economy, and was actively soliciting out-of-state businesses to relocate.  As a region, Beaufort County had long possessed the wherewithal to attract reasonable business and tourist growth, and was eager for more. Jasper County, on the other hand, was at the bottom of the political and economic ladder and was eager to gain first-time recognition, and was even more eager to improve their economic status through business growth.  Hilton Head Island was a growing tourist and retirement Mecca at the time, and was gaining national media attention for its celebrity sporting events, as well as for its unusual lowcountry topography and pristine beaches.  

While the opportunities for an allied partnership among the principle jurisdictions were clearly evident, there were a number of political hurdles to work through before a deal could be consummated.

• Easy access from I-95 to the property was the lynch pin, and that required action and commitment from the State of South Carolina.  SCDOT was a heavyweight catalyst in our ability to move the project forward expeditiously, in that they (DOT) would have to build the Hwy 278 extension from the intersection at Hwy 170 to a new interchange at I-95.  Building the extension was one thing.  Expeditious timing for completion was quite another.
• With a potential land plan that would be separated by the Hwy 278 extension, a bridge over Hwy 278 became a major requirement...and a costly one at that.
• With a lengthy construction schedule for the Hwy 278 extension, as well as the cost and timing for the bridge, Webb would have to use the Hwy 170 gate as its primary entrance from the onset.  With initial community development planned for the same area, the “presentation” inside the Hwy 170 gate became an immediate concern for the marketing image of the community.

In mid 1993, Del Webb secured an option on 5100 acres of Union Camp property (Beaufort and Jasper Counties), and an additional 100 acres east of Hwy 170 on the Okatie River (to be later designated at Riverbend).  At this time, corporate planners estimated an 8-12 month due diligence time to survey property, meet & greet neighbors and local dignitaries, pave the way for governmental agency review/acceptance, and otherwise evaluate land planning options.  In December of 1993, the Beaufort County Council voted unanimously to invite Del Webb into the lowcountry, rezone their portion of the property, and ratify a 20-year development agreement.  The Jasper County Council would take similar actions some 6 months later.  The initial land plan suggested a total planned community development of 8500 homes.

The official announcement for the Del Webb development came in early 1994, with an announcement by then Governor Carroll Campbell.  Heralded as “one of the most significant projects ever to come to [the] state,” Governor Campbell’s comments set in motion a chain of events that would lead to the full-scale development of Sun City Hilton Head.

The community name brings a pause to the historical chronicle.  For a fledgling local community such as Bluffton, there would be huge gains if the new community included its namesake.  While each county also politicked for name recognition, there was no win-win situation for Webb in this arena.  From a pure marketing standpoint, the greatest recognition and exposure would come from the attraction that drew the crowds; i.e., Hilton Head.  While it was clearly a stretch to attach the name of a community that was 9-15 miles away, it was a promotional necessity.  A necessity that did not come without a series of media setbacks, as Hilton Head Island officials vocally objected to Webb’s use of their namesake...some even suggesting that the developer was being “devious” in its intended use of the Hilton Head name.

In April 1994, clear-cutting of pine trees began, and the land development program for Sun City Hilton Head was underway.  In a few short months, the area currently known as Lake Somerset Circle would become a trailer city where Del Webb Construction, Land Development, and all trades would call “Home” for a few years.  The trailer initially occupied by the Sales department would eventually be occupied by the initial CAM staff.   The Del Webb Administrative department was initially housed in a leased building (shared with a local bank) at the corner of Hwy 278 and Burnt Church Road.  (The Administration group would subsequently relocate to a larger leased facility in the Moss Creek area, before gaining a final foothold in the current Administration Building.)

In August of the same year, an additional 377-acre parcel known as Bull Hill would be added to the land plan.  Among other things, this additional parcel created the program need for an additional 9 holes of golf.  At 630 am, on November 28, 1994, home sales began.  By 7 pm of the same day...25 homes had been sold and the rest, as they say, is history. 

While construction began in early 1995, the actual grand opening ceremony didn’t occur until June 1995.  Held on the banks of Lake Somerset, the scaled-back event (for Del Webb standards) welcomed 600-700 dignitaries and lowcountry friends into the community.  The scaled-back version of the event was deliberate...intending to portray this new developer as a concerned new citizen, and not one to flaunt money on a lavish grand opening party.  In fact, as one of its first public relation coups, Del Webb donated approximately $30,000 to lowcountry charities...in lieu of the lavish party. 

Although the sales and marketing program was moving into fast-forward, Webb was being inundated with massive rains.  Back-to-back years (1994 & 1995) of 100-year rains caused infrastructure costs to escalate, and construction starts to lag.  By fall 1995, the construction program was 3-4 months behind schedule, and the land development program was in a similar, if not worse, state.

Despite the rains, the initial sales momentum was strong.  However, as 1996 moved into sight, sales took a downturn at Sun City Hilton Head.  Not pausing to reconsider its plan, Del Webb delivered Town Square and its amenity package by spring of that year.  By fall of that year, construction on the Riverbend dock would begin...along with the basic land clearing for the pending Riverbend neighborhood.  Notwithstanding the initial delivery of amenities, by early 1997, sales had decreased significantly.

The first 3 quarters of FY 97 showed a dismal sales record.  On a positive note, the 4^th quarter rebounded well with a jump-start of 40 plus % in home sales.  Concurrently with the upward move in home sales was the early development of the nearby commercial corridor.  It’s hard to say which came first, the chicken (increased home sales), or the egg (initial commercial development).  But, marketing programs were generating new interest, and along with interest came sales, and along with sales came a much-needed spurt of economic growth. 

Much of 1998 was focused on reestablishing the land development and construction schedules, and adjusting to changes in management.  Up to this point in time, the Association was controlled entirely by Del Webb, and the initial Voting Delegate governance program was beginning to take root.  Initial committees were being formed and the Community Association was beginning to take on a role of its own.

In January 1999, Webb announced that it would add its first resident to the Board of Directors.  In May, in a vote of the Voting Delegates, Ed Wiler was elected to the Board.  The following year (2000), the Board was expanded from 3 members to 5 members, and a 2^nd resident position was added to the Board.  Again, in a vote of the Voting Delegates, Don Hutchinson was elected to the Board.

As Webb moved into 2001, corporate philosophies and business plans were changing rapidly, to reflect a more concerned and focused attitude on the financial return from invested capital.  While Webb was coming off a series of record-breaking sales years, financial analysts were becoming more critical of the meager results being delivered to the company’s stockholders.  Webb leaders were intent on improving their market position, and set out on a “New Webb” program that would deliver significant change...to both internal and external customers and employees.

As the community grew towards 2000 homes in early 2001, the Association’s governance program grew with it.  Ed Wiler was enthusiastically reelected to a 2^nd two-year term on the Association’s Board.  But, with growth came concern over the developer-announced future termination of Association subsidies, and the related incremental increase in fees that could be expected.  To work toward a mutual conclusion, the Finance Committee took on the initiative of creating the first 5-Year Financial Plan.  The Plan was a milestone for the Association’s financial management program, and began a series of policy and procedure improvements.

On the developer side, their pre-announced goal of improving their financial position in the market was succeeding.  Following months of rumors, it was announced that Webb was entering serious business negotiations with another prominent, national homebuilder.  It would soon be announced that Pulte Homes, headquartered out of Bloomfield Hills, MI, was seriously considering the acquisition of the Del Webb Corporation.  On July 31, the merger was complete and the new brand, “Del Webb Group,” promoted.  Pulte’s dominance of the homebuilding market was not only legendary because of its cumulative volume, but because of extraordinary design and build efficiencies that were a hallmark to their “Customer for Life” program.

While the multi-year plan brought some comfort to the financial subject, there was still much concern and confusion over the ever-expanding governance program.  Specifically, in addition to an expanding Board, came an expanding Voting Delegate Council...and a concurrently expanding Neighborhood Committee program.  Leadership roles overlapped and responsibilities were commingled.  Through a developer initiative, a Community Study Group was appointed for the expressed purpose of reassessing the overall community governance program.  In December, following months of study and open meetings, the group recommended a major overhaul of the system to the developer. 

In January 2002, the Association’s Board adopted all recommendations voted upon by the Voting Delegates, with the principle changes being (1) the elimination of the Voting Delegates, and their subsequent integration with the Neighborhood Committees; and (2) the return of voting power for resident Board members to the general membership.  With Board adoption, the developer agreed to further expansion of the Board (from 5 members to 7 members), and to add a 3^rd resident position.  With all recommendations and developer initiatives formulated, the governing documents were amended. 

Also in January, the Board initiated their first off-site planning retreat.  Held at the South Carolina Yacht Club in Windmill Harbor, the retreat focused on (1) the need for more open and candid dialogue between Webb and resident Board members; (2) the development of the community’s first mission statement; and (3) the development of the Association’s first set of strategic goals & objectives.  The mission statement and goals exercise was the first of its kind for a Sun City Hilton Head Association Board.

In May, an election was held for 1 incumbent position and the newly established position, and residents Jerry McQuaid and Steve Koehl joined mid-term resident Ed Wiler on the new 7-member Board. 

May was also an important time for the developer, as they unveiled their 3^rd model park.  This one, however, was different.  This one had the design fingerprints of the company’s founder, Bill Pulte, on it.  This one had design and build efficiencies as the central theme.  This one was aimed directly at a market that had long ago told the developer that they loved the area...loved the lifestyle...but, could no longer afford the price tag.  From the Model Park opening on May 4, sales were brisk.  As the developer would soon understand, the new models would quickly outsell the old models by 2 to 1.  The sales program was on fire, and a new and optimistic sales atmosphere returned to the lowcountry.

By July, the new Board was eager to further extend open dialogue to the membership, and they directed that (1) all Board-appointed committee meetings would be held in an open format; and (2) that resident participation in Board meetings would be extended on a controlled, trial basis.  Meeting venues were expanded, audiences would soon dramatically increase in size, and resident interest in the affairs of the Association was clearly on the rise.

July also brought the new Custom Home Lot program to the Riverbend neighborhood.  Webb would only complete construction on prior home sale commitments, and would then relegate all sales through a brokerage alliance with SeaPines Realty.  Select local area builders would be allowed to construct homes in Riverbend, subject to the Webb-controlled Design Guidelines.  The sale of custom lots was off to a booming start.

By August-September, the Board was focusing on some of its strategic initiatives.  Important ad hoc committees (Master Plan and Business Technology) were formed, along with a new standing committee, Properties & Grounds.  All new groups were eager to get started with their charters, and all moved out quickly in their new endeavors. 

Business Technology, under the aggressive leadership of Bob Rasmussen, jumped to the forefront with a series of evaluations and presentations.  In short order, Bob was facilitating a PowerPoint presentation to the Association’s Board, and a subsequent presentation via videoconference to Pulte’s vice president for Information Systems.  In equally short order, Bob’s group was given approval by both the Board and Pulte Homes to move ahead with the design development of a secondary master database, and corresponding development of improved, integrated software programs for the Association.

The Master Plan Committee, under the focused direction of Jim Hamilton, engaged in a series of educational sessions, with each one designed to filter extraneous material and build on meaningful, long-range initiatives.   From the onset, this group was intent on learning from others, and not replicating either error or misdirection.  Pivotal to their going-forward position would be the use of a SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis, and a thorough understanding of their stakeholder base.

The Properties & Grounds Committee, under the very technically skilled chairmanship of Stan Raczkowski, began with education first and foremost in their sights.  The infrastructure of Sun City Hilton Head was huge by anybody’s definition, and this group would have to understand it to properly assist in its management and maintenance.

The October regular Board meeting not only brought continued candidness from the participating audience, but it was broadcast “Live” by the fledgling Broadcast Committee.  Live and tape-delay broadcasting of important Association meetings and forums would planned to be a regular occurrence, and the convenience of arm-chair participation from home was expected to soon be the norm at Sun City Hilton Head.

From a number of perspectives, November was a milestone in Community history.  From the developer side, new model park gross sales (from May 4) had reached 242, with an additional 114 coming from the older 8200 series models...for a January to mid-November gross sales of 419.  Another 51 gross sales in Riverbend custom lots added to the enthusiasm.  With little but Mother Nature and holidays to get in the way, Pulte-Del Webb was closing in on a record-breaking sales year.