February 21, 2025

Hilton Head’s U.S. 278 Corridor Project Faces Funding Challenges

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News Summary

The U.S. 278 corridor project in Hilton Head is running into significant funding challenges, with local authorities needing to present a funding plan within 40 days. Compounding the issue is the costly relocation of an essential drinking water pipeline that serves 20% of the island’s water needs. As local leaders narrow down construction options, community members voice concerns over transparency and potential rate hikes for water consumers. The project deadline looms, raising the stakes for decision-making in this vital infrastructure endeavor.

Hilton Head’s U.S. 278 Corridor Project Hits Snags: Funding Woes and Water Pipeline Relocation

The much-anticipated U.S. 278 corridor project in Hilton Head is facing significant funding challenges just as local government agencies are racing against the clock. Beaufort County and the Town of Hilton Head are required to present a viable funding plan for this crucial infrastructure endeavor within the next 40 days—and the stakes couldn’t be higher.

Water Pipeline Dilemma

At the heart of the project is an underground drinking water pipeline that supplies a whopping 20% of Hilton Head’s drinking water. This essential pipeline, installed by the Beaufort Jasper Sewer & Water Authority, delivers 8 million gallons of water each day, ensuring the community’s hydration needs are met amid growing populations.

The relocation of this two-foot wide pipeline is non-negotiable if the project is to move forward. It must be repositioned prior to the construction of new bridges, notably the eastbound Mackay and Skull Creek bridges. However, with estimates pegging the cost of relocating the pipeline between $15.2 million and $20 million, budget considerations loom large over the project.

Current Bridge Construction Plans

While planning progresses, the municipalities are leaning toward “Option 1,” which suggests a three-lane eastbound bridge but omits a dedicated walking and biking pathway. This decision is met with mixed responses from the community, especially considering past outreach efforts that have faced scrutiny for transparency issues.

Potential Rate Hikes for Water Consumers

As financial hurdles mount, local officials warn that if pipeline relocation costs climb above available funds, the implications could mean increased charges for Hilton Head water rate payers. Assistant County Administrator Jared Fralix projects that around $15.5 million should be accessible from local and state allocations for the pipeline’s move. Yet, meeting the total construction costs, estimated to be around $20 million, will require additional financial backing, likely putting the Public Service District (PSD) on the hook for a significant portion of the expenses.

Legislative Support and Challenges

Recent legislative changes offer a small ray of hope, as public water and sewer facilities can now draw 4.5% of a transportation project’s construction bid amount to finance necessary utility relocations. This could mean the PSD stands to gain almost $9 million from state funding tied to the corridor project. However, a revised draft resolution presents another hurdle: the allocation for the PSD has been slashed to $6.5 million, falling short of what’s needed and creating further budgetary dilemmas.

Historic Pipeline and Oversight Issues

The drinking water pipeline, installed in 1999 amid concerns over saltwater intrusion in the island’s groundwater, has been a vital asset. The complexity of its relocation is compounded by complicating factors such as a $15 million oversight regarding engineering costs by the South Carolina Department of Transportation (SCDOT). This adds strain to an already tight budget.

Costly Alternatives on the Table

While the envisioned three-lane bridge construction and enhancements are tagged at an estimated $488 million, local leaders are faced with the harsh reality that should they fail to progress by the March 31 deadline, they might need to reconsider options—such as a more modest two-lane bridge costing about $90 million.

Community Concerns and Upcoming Meetings

Meanwhile, community engagement remains a contentious issue. Residents have vocalized concerns over funding dynamics, transparency, and anticipated traffic impacts during public meetings. A recent community gathering illuminated frustrations regarding previous decision-making processes, including a controversial past ‘secret meeting’ that held implications for the historic Gullah neighborhood.

As local leaders gear up for critical upcoming meetings to finalize funding and project scopes, the clock ticks down on the U.S. 278 corridor project, which promises to address rising traffic and population demands in this cherished coastal community.