Jekyll Island State Park and the Affordability Issue
The Background
Jekyll Island State Park’s founding legislation calls for the island’s facilities to be affordable for average income citizens. For nearly a half century, the affordability mandate found in the Georgia Code has held sway on the island, making Jekyll a destination of choice for generations of families of ordinary means.
The New Situation
Over the past few years, the JIA board’s attitude toward the affordability mandate has undergone a transformation.
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The board now speaks of Jekyll’s need to have “a full range of accommodations” and to “offer something for all Georgians” – nice sounding phrases, but how do they translate into action?
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When the question of affordability is raised these days, the board has resisted coming to terms with the concept of affordability and applying this concept to Jekyll’s revitalization in a meaningful way.
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Most people recognize that “affordability is not easily define, and most accept Jekyll’s need for a variety of lodging options, but this does not mean that affordability should be disregarded and high-end accommodations should become the norm on the island.
Hotel Redevelopment
A prime example of disregard of the affordability mandate can be seen in the case of the board’s first step toward hotel redevelopment.
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At the June 18, 2007 JIA board meeting, a representative of the Trammell Crow Company announced that the Buccaneer Resort will be replaced by a $120,000,000 hotel/condo complex (Canopy Bluff Resort) consisting of 540 rooms; the Buccaneer had 210 rooms.
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The average daily rate (ADR) for the new hotel will be roughly $180 per day (double that of the Buccaneer); peak season ADR is estimated to be around $250.
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The Canopy Bluff Resort will raise the ratio of Jekyll’s high-end rooms from its current fifteen percent to thirty-five percent
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Trammell Crow’s plans for its second project—the replacement of the Oceanside Inn & Suites (formerly the Wanderer)—calls for a “mixed-use hotel complex,” with room rates similar to those cited above, according to a Trammell Crow spokesperson.
The Town Center Project
On September 25, 2007, the JIA selected Linger Longer Communities as its private sector partner in the revitalization of Jekyll Island State Park. The first project to be undertaken by LLC is the so-called Jekyll Town Center, a complex of some 430 condos and time-share units, three hotels totaling 725 rooms, a retail center, and a new convention center, as currently proposed.
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Described by LLC as affordable lodgings, the pricing of the Town Center accommodations are as follows: an off-beach 125-room hotel with an ADR of $105; a beachfront 200-room hotel with an ADR of $138; and a 400-room beachfront hotel with an ADR of $183. The average ADR for the 725 rooms combined is $156. Peak season (summer) combined ADR rates would be roughly $200.
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LLC’s 400-room upscale hotel would bring the island-wide ratio of high-end rooms to over fifty percent.
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The average sale price for a condo is $510,000; oceanfront three-bedroom condos would sell for $775,000.
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The average weekly rental rate for all condos would be $1,650; three-bedroom condos would rent for $2,000 per week.
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By averaging each individual condo room with each hotel room, LLC has been able to say that 72 percent of the Town Center’s rooms will rent for under $139 per night. Condos will rent for only $96 per night says LLC, when priced on a per bedroom basis.
The JIA’s Affordability Policy
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The JIA board has adopted an “affordability policy,” which states that Jekyll will have “a substantial number” (undefined) of affordable accommodations, defining “affordable” in accord with the Mobil Travel Guide Star Rating System, which primarily applies to the kinds of amenities and services offered by hotels rather than room rates.
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The policy is sufficiently general to allow the upscaling of Jekyll’s lodgings which is either underway or in the project planning stages.
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The board’s leadership has also said that Jekyll’s modestly-priced lodgings belong on off-beach locations, a statement which has not sat well with many of Jekyll’s.
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Attempts to pass legislation this year in the General Assembly that would have defined affordability with regard to Jekyll Island State Park’s lodgings were thwarted by the JIA and its political allies, who succeeded in killing the proposed legislation at the committee level, preventing a vote on the bills on either the House or Senate floor.
What Can Be Done to Help Ensure an Affordable Jekyll?
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Jekyll’s affordability mandate has legal status; it is part of the Georgia Code of Laws. If the JIA continues to moves the island in a direction that runs contrary to this mandate, there may be legal grounds for challenging its actions. If this comes to pass, public input on the board’s actions and on the affordability question would be vital since we would have to establish that the board has violated the public’s trust in this regard.
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We are currently gathering public support for an affordable Jekyll by way of our online petition which can be completed by clicking on the following link: www.savejekyllisland.org/AffPet.html.