News Release

Town Council Meeting Highlights: October 21, 2025

October 23, 2025

The Hilton Head Island Town Council held a regularly scheduled meeting on Tuesday, October 21, 2025.

A full recording of the meeting is available on the Town's YouTube channel, and a complete meeting overview (agenda and packet materials) is posted on the Town's website. The next regular Town Council meeting is scheduled for November 4 at 3 p.m.

Actions taken by Town Council on October 21 include:

• Approval of the second reading of an ordinance to repeal and replace Title 10, Chapter 2 of the Municipal Code of the Town of Hilton Head Island Entitled Short-Term Rentals. Town Council voted to amend the proposed short-term rental ordinance with the following key changes:
  • Short-term rentals with 3,600 or more square feet, and that do not already have a fire suppression system, must have a fire alarm system installed with monitored, automatic smoke detectors that activate an occupant notification alarm system.
  • If there is propane use in a short-term rental, the property must have a combustible gas detection device.
  • All gas grills must have a shut-off timer that does not exceed 60 minutes.
  • Parking  for short-term rentals is limited to a maximum of six exterior parking spaces on an improved surface as shown on the property site plan. Garage parking spaces are not included in this count.
  • The new annual permit period will be May 1 to April 30, which aligns with the business license renewal period.
  • The effective date for these changes is May 1, 2026.
    • Exception: Permit holders as of adoption of the ordinance (October 21, 2025) must comply with fire safety alarm requirement by May 1, 2027.
  • No changes in permit fees at this time.  This will be discussed either as part of an upcoming budget amendment or the FY2027 budget.
• Approval of the first reading of an ordinance to update the Business License Class Schedule as Required by South Carolina State Act 176 (Sept. 2020). A detailed business license revenue analysis conducted in July 2025 determined that the statewide, required class schedule changes would result in a total business license tax revenue loss to the Town of $348,745 once implemented. If adopted at second reading, the measure would rebalance the Town’s business license tax rates by implementing a 4.9% increase across all business license classes to ensure revenue-neutral results.
• Approval of the first reading of an ordinance authorizing the issuance of special obligation bonds (Beach Preservation Fee Pledge) in the amount of $19 million to support partial funding of the current Beach Renourishment Project. If adopted at second reading, the measure would delegate authority to the Town Manager to determine the form and details of the bonds. The bond issue would allow the Town to:
  • Maintain a strong Beach Preservation Fee fund balance, more than the minimum fund balance policy of $20 million.
  • Provide additional financial flexibility in the event of a natural disaster.
  • Match the seven-year repayment period to the projects useful life to ensure a fair and financially sustainable funding plan.
  
  The proposed bond issue will not count against the Town's 8% general obligation bond capacity.

After executive session, the following actions were taken:

•  Approval of resolutions authorizing the Mayor and Town Manager to execute contracts for the purchase of the following properties:
  • 1 and 5 Old Wild Horse Road - Three  parcels totaling 1.53 acres funded with a combination of 50% Town Tax Increment Financing (TIF) funds and 50% Gullah Geechee Historic Neighborhoods Community Development Corporation funds.
  • 9 and 10 Park Lane - Two commercial parcels totaling 3.16 acres for the purpose of a new Fire Rescue Headquarters located at 10 Park Lane. The restaurant building at 9 Park Lane will be demolished and repurposed for open space and parking to support Fire Rescue operations.
• Approval of a resolution to appoint the following Town Council members to the Land Management Ordinance Task Force:
  • Steve DeSimone, Chairperson
  • Tamara Becker, Vice-Chairperson
  • Patsy Brison