MOUNT PLEASANT — Future redevelopment plans for Mount Pleasant Towne Centre are dead for now as the owners of East Cooper's largest shopping and entertainment destination failed to secure the necessary votes from elected officials to move forward.
The denial is a blow to Continental Realty Corp., which has sought for four years to change a development agreement approved in the late 1990s. The Baltimore-based investment firm wants to add another hotel, hundreds of housing units, more parking garages and more greenspace to the property on Highway 17 near the Isle of Palms Connector.
Following more than an hour of public comments Aug. 12, Mount Pleasant Town Council voted 7-1 to deny the request, with Howard Chapman dissenting.
In a statement to The Post and Courier, Continental Realty CEO JM Shapiro said he was "disappointed" by the decision to reject a plan that would "reimagine and protect Towne Centre."
"We believe this is a missed opportunity to address Mount Pleasant’s critical need for housing and that it is counter to proven smart-growth strategies," said Shapiro, whose company paid $147 million for the property in 2020.
While the town’s Planning Commission on June 18 recommended approval of the amendment, a separate panel deferred the issue in July and made no recommendation after meeting this month to hand up to town council.
Continental returned for another crack at approval Tuesday with a plan based, at least in part, on the possibility that anchor tenants Belk or Regal Cinemas could move out of the shopping center someday.
Big-box retail stores are increasingly more challenging to fill, the company has previously stated. The vacant Bed Bath & Beyond at Towne Centre has been held up as a prime example. The 34,650-square-foot space is still empty after nearly two years.
Community came out in droves
Mount Pleasant resident Pam Ireland questioned why the redevelopment changes are on the table now.
“Theoretically, this plan could be on ice for 28 years," she said.
Ireland added warned that the town should be cautious about approving long-term zoning entitlements it can’t take back later.
Resident Brenda Dye also requested denial, saying the plans are "overwhelming" and don’t benefit local citizens. The area already is “mired in traffic,” she said, adding that Towne Centre isn’t a tourist destination that needs another hotel.
“None of this will improve the livability of our town,” she said. “On the contrary, the owners and investors will profit, but their financial gain will come at the expense of our quality of life and further deterioration of the livability of our town.”
Belk and its senior management have been among the most vocal opponents. Executives of the chain showed up again Tuesday to express concerns about elevated building heights and other changes could hurt the company’s two stores at Towne Centre.
Janet Smith, a senior vice president for the company, said Belk’s leases run through 2053 and 2043. She also reiterated to officials that the department store chain is in strong financial condition and is not going anywhere.
Smith added there are “no assurances that the concept plan presented is what the community will ultimately receive" — and that includes the proposed affordable housing.
Under the current agreement, the property owners are allowed to build as many as eight units per acre if half are dedicated to attainable housing.
Wendi Frost, vice president of real estate operations for Charlotte-based Belk, said the shopping center owners have been free to build homes for years but have "yet to build one."
In contrast, Josh Dix, a local housing advocate, spoke in favor of the plan. He said the proposed residential component is a way for the town and shopping center to utilize existing infill space rather than outlying areas to meet housing needs.
He added the plans "could be a model for a lot of the redevelopment" and emphasized people need to "think differently" and "wiser" with how they use land.
Shapiro, the Continental Realty CEO, and Merritt Abney, the company's lawyer, stressed that the plans don't alter Belk’s lease or authorize construction on Belk-leased premises.
"This shouldn't be about Belk," Shapiro said during public comments.
Abney added the proposed amendment is all about "long-term flexibility” and has the “support of nearly all tenants" at Towne Centre.
“The request is reasonable. It advances the town’s established land-use goals. And we request that you approve," he said.
The Beach Co. CEO John Darby, whose family-owned Charleston-based real estate firm is an investor in Towne Centre with Continental Realty, called on officials “to make a decision.”
“Honestly, a deferral tonight will be viewed as a 'no' vote,” he said.
His son, J.C. Darby, closed out the public comment section and didn't pull any punches against Belk.
"The last several days Belk has thrown a grenade on the last four years and all the work we've done to get here," he said. "We've tried to reason with them, but cannot."
Belk dispute is 'irrelevant'
Following nearly two hours of discussion, council member John Iacofano said the plans in the end still weren't "there yet" and not concrete enough.
GM Whitley, who served the chairperson pro tem in Mayor Will Haynie's absence, said the Belk dispute is "irrelevant" and her "no" vote was against Continental's "if/when" proposals.
"What I do know is that if all this is entitled into this property, the valuation of this property goes up significantly," she said, adding she was “not comfortable giving the gift of hundreds of millions upon millions of dollars to a developer in exchange for a hundred affordable housing units when we have developers in our community who are building affordable housing."
Before voting, council member Lauren Hyatt said, "I've had an issue from the beginning that this is just a request for entitlements without a plan, and that, to me, is not something that I can vote for."
Chapman, who broke from the majority and was in favor of deferring the issue, said the town "has been sort of whiplashed into deciding between Belk and the owners of Towne Center, and I don't think that's fair."
"I would like to see us figure out a way to have this resource, Towne Centre, which is a jewel, ... get the only business in Towne Centre that has objected to come to terms with what eventually can be done, but most of all what can be done right now," Chapman said.
He and council member Daniel Brownstein recommended Belk and Continental get together ahead of any future proposals.
"I kind of take issue with some of the ultimatums that have been made on both sides tonight, that if we deny this we're turning our back on Towne Center or we're against attainable housing," Brownstein said. "But I don't want that to be misconstrued (that) I don't think things need to change at Towne Centre. I think there's a big opportunity to add some vibrancy."
The property owners must wait at least year before submitting a new proposal, and they could appeal the town’s decision.