Beaufort Hotel and Parking Garage Project Gains Legal Approval Despite Ongoing Challenges

Beaufort’s Hotel and Parking Garage Project Moves Forward

Beaufort, a charming city known for its rich history and beautiful landscapes, is buzzing with news as the South Carolina Court of Appeals has recently upheld the city’s approval for a downtown hotel and parking garage. This marks a significant win for both the city and Dick Stewart’s 303 Associates, amidst an ongoing saga filled with legal challenges from project opponents who believe these developments are too large for the historic downtown area.

Legal Pushback: A Familiar Narrative

In previous attempts to halt the construction, legal challenges had been brought forth by the Historic Beaufort Foundation (HBF)—a nonprofit committed to preserving the town’s historical assets—and Graham Trask, a local property owner and developer. Two lower court rulings had already rejected these legal challenges in January 2022 and June 2023, paving the way for the recent Appeals Court ruling.

The Appeals Court panel’s decision, made on Wednesday, supported the city’s plans, allowing them to finally move forward with the long-discussed hotel and parking garage. The hotel is set to be a four-story, 72-room establishment located at the corner of Scott and Port Republic streets, while the parking garage will be a three-story structure on the block bordered by Charles, Craven, and West streets.

The City’s Perspective

City Manager Scott Marshall expressed his pleasure with the Appeals Court’s decisions, which confirmed Beaufort’s actions throughout the approval process that included extensive public discussions and assessments by the Historic District Review Board and the Zoning Board of Appeals in 2021. The city spent a total of $88,135 defending its position, which has been upheld consistently by both Circuit Court and the Appeals Court.

Marshall pointed out that the decision not only validates Beaufort’s approach but also highlights the essential need for more parking in downtown, a topic that has seen years of debate. In fact, a study conducted a decade ago noted a shortfall of about 450 parking spaces in the area.

Project Delays & Financial Implications

Despite the recent victory, Stewart has warned that construction of the hotel and parking garage will remain on hold due to delays caused by these ongoing lawsuits. He described the legal actions as “frivolous” and expressed deep concern over the drastic financial implications these delays have caused. According to Stewart, increases related to the cost of labor and materials due to inflation have now escalated the projects’ costs to tens of millions more than originally projected.

In July 2023, Stewart initiated his own lawsuit against Trask, citing a “conspiracy of misinformation” as a reason for the slowdown and resulting losses, which he estimates to be around $40 million. This lawsuit seeks a total of $120 million in damages, including punitive damages aimed at compensation for reputational harm and legal costs incurred.

Looking Ahead

While the hotel and parking garage developments remain stalled, Stewart isn’t backing down. He has plans to continue moving forward with a 19-unit apartment project scheduled for the first half of 2025, estimated to cost around $7.5 million. This project will be located at 211 Charles St., potentially bringing more growth to the area, even as the larger projects face hurdles.

Meanwhile, Graham Trask views the Appeals Court rulings as an unfortunate setback. He has indicated a desire to hold the city accountable for its legal frameworks, as he continues to consider options for pursuing further legal action, which may include asking the state’s Supreme Court to review these decisions.

Final Thoughts

With the city now moving forward with its ambitious plans after a challenging legal battle, Beaufort’s future holds exciting prospects, yet the conversation around the balance of growth and historical preservation remains a vital part of the community dialogue.