Lumina News Copyright ©2004 on Thursday, July 29, 2010

Holiday Inn concerned over setbacks

by Keith T. Barber
Thursday, December 13, 2007

The math is simple, but the potential economic impact of proposed changes by the North Carolina Coastal Resources Commission (CRC) isn’t so clear, said Sue Bulluck, a spokesperson for the Holiday Inn SunSpree. Under the proposed changes to ocean hazard setbacks drafted on July 27, the CRC would require all structures with 100,000 square feet to have a setback of 180 feet or 90 times the shoreline erosion rate, whichever is greater. The Holiday Inn SunSpree measures more than 100,000 square feet and currently sits 120 feet back from the static vegetation line — the reference point for measuring all oceanfront setbacks.

“If we had a fire or were 50 percent destroyed and had to rebuild, we would not be able to rebuild — certainly not the structure that is there,” Bulluck said. “Our position is that it certainly needs more discussion.”

If the proposed CRC regulations were adopted by the N.C. General Assembly, it would mean that large oceanfront structures currently not in compliance with the new rules could not rebuild to original specifications. A summary of the proposed CRC regulations will be presented to the Wrightsville Beach Board of Aldermen at tonight’s (Thursday’s) regular meeting.

Included in the board’s information packet is a letter from Mark B. Pearsall of the Holiday Inn SunSpree to the CRC. In the letter, Pearsall contends the proposed CRC regulations would do “serious damage” to the value and insurability of the hotel if they are adopted by the N.C. General Assembly. Pearsall requests an exemption for all structures in the Ocean Hazard Zone that met building code requirements at the time of construction.

“The problem with making everything irreplaceable and nonconforming has to do with flood insurance formulas and wind and hail insurance formulas. Insurance formulas in general are based on stability, and nonconforming (status) makes you less stable,” Bulluck said.

The issue of oceanfront homes and commercial properties seeing a dramatic increase in their insurance premiums, and even loss of coverage, could be one of the unintended consequences of the proposed regulations, Bulluck said.

The proposed CRC rules affect all properties within the Ocean Hazard Zone. The proposed setback standards for ocean hazard areas begin with structures of 5,000 square feet or less and graduate up to large structures of 100,000 square feet or more.

“So that is why we’re urging caution and really close review,” Bulluck said. “There is some discussion in CRC of their desire to correct what they see as a problem in beaches that aren’t renourished. It’s very difficult to look and say, ‘One size fits all.’”

The public comment period on the proposed CRC regulations is open until Dec. 31, with the next CRC meeting slated for Jan. 17-18, 2008 in New Bern.