Waterline controversy resurfaces

Johns Island utility wants group to pay for delaying project A Johns Island water company is asking the courts to force a nonprofit environmental organization to pay $20 million in damages if its opposition to a proposed waterline costs the project federal funding. The St. Johns Water Co., the developers of Kiawah Island resort and Seabrook Island homeowners filed motions late last month asking that the Coastal Conservation League post a multimillion-dollar bond, saying the league's actions could result in the utility losing nearly $8 million in federal funds for the waterline. The league says the action is simply meant to intimidate. Since its proposal, the waterline has sparked controversy. Supporters say it's necessary to meet peak summer demands, increase water pressure in fire hydrants and provide a safe source of drinking water for island residents, who drink well water. Aside from delaying construction on four or five subdivisions planned to contain up to 4,000 homes, the absence of a waterline could drive up islanders' insurance rates. Opponents say building the waterline would guarantee unwanted suburban development. In March, the county Board of Zoning Appeals rejected the plan to build the $9.7 million waterline, which would stretch some 11 miles along River Road to near the entrance to Kiawah and Seabrook islands. The board upheld its decision in May after a rehearing. In July, Circuit Judge Markley Dennis reversed the appeals board and backed the waterline's construction. After a request to reconsider, Dennis reaffirmed his decision in November. The league appealed in December, putting construction of the waterline on hold. The water company also is asking that the county zoning appeals board be found in contempt for not issuing necessary construction permits. The suit says the appeal could cause it to lose $7.8 million in a U.S. Department of Agriculture loan, which will expire Feb. 28 if the permit hasn't been submitted to the agency. Mary Shahid, an attorney for the company, said: "We need to get moving. We have a funding issue, and funding could lapse if we don't get all our paperwork in order." The bond would cover the amount of the loan, plus money lost from approved development that can't be built without the waterline, Shahid said. In the suit, the utility is joined by the town of Kiawah Island, the developers and owners of the Kiawah Island resort, the Seabrook Island Property Owners Association and two Johns Island developers. Coastal Conservation League Director Dana Beach said it would be illogical to force the league to post such a bond. "It is designed to intimidate and shock," he said of the motion for the bond, which the league cannot afford. "We don't put any creditability in that." Appeals Board Chairman John Hope said the contempt of court effort by the water company shows a lack of respect for the board. "I think it's an absurdity," Hope said. "An appeal should stop all actions, legally and technically." Though the league appealed, the county did not. "The county did not appeal over my personal objections," Hope said, referring to both the zoning appeals board and County Council. Hope said the reasons for not appealing were discussed in closed meetings where legal advice was offered, but he wouldn't elaborate. St. John's Fire Department Chief Karl Ristow said with continued development on the island there's a need for increased water supply and water pressure to fight fires. Islanders could see an increase in homeowner's insurance in the next 10 to 15 years if the waterline is not built because the fire department's protection rating could increase, Ristow said. Fire protection accounts for 40 percent of homeowner's insurance costs, he said. If, for example, the department's rating rose from its current score of 4 to 7, the annual increase for a $200,000 home on Johns Island would average $205, said Allison Wright, executive director of the S.C. Insurance News Service. A $1 million home on Kiawah or Seabrook would average an increase of $1,745, she said.

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