Residents of historic Black SC town sue to stop luxury oceanfront hotel project

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Residents of historic Black SC town sue to stop luxury oceanfront hotel project
By Nicole Ziege nziege@postandcourier.com
Sep 27, 2023
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Atlantic Beach resident William Booker addresses the Town Council during a July 10 meeting. Concerned residents of the town have now sued to stop a luxury oceanfront hotel project from moving forward. Richard Caines/Staff
Richard Caines/Staff
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ATLANTIC BEACH — Fearing irreversible change in their community, a group of Atlantic Beach landowners filed a lawsuit this week in an attempt to stop the development of a 21-story oceanfront hotel and condo project in the historically Black town.

“The Black Pearl of the Atlantic” condo-hotel would be located near 30th Avenue South and South Ocean Boulevard. Plans call for the complex to offer 168 hotel rooms, 36 short-term rental units, 24 luxury-condo units and 420 parking spaces along with a nearby 11-story parking garage.

“We refuse to stand idly by as a high-rise condo plan gains momentum, potentially devastating our entire community,” Traci Cooper, one of the concerned town residents, said in statement. “We will not let Atlantic Beach suffer the same fates as Bruce’s Beach, American Beach and other predominately African American beach communities, where indigenous people lose their power, voice and culture.”


Known as the Black Pearl, Atlantic Beach is home to nearly 300 residents. The town spans close to 100 acres between the city limits of North Myrtle Beach.

During the segregation era, Atlantic Beach was one of the most popular vacation destinations for Black families along the East Coast — with its hotels, nightclubs, restaurants and stores where they could gather and mingle without fear of discrimination.

In recent decades, the town has been known as the home of the Black Pearl Cultural Heritage Festival, commonly known as Atlantic Beach Bikefest.

The condo-hotel project has stirred debate for months over its potential impact on the town’s historic and cultural significance.


The group Supporters for Tyson’s Ancestral Restrictions on the Deeds (STARD) filed a lawsuit Sept. 26 on behalf of local landowners. Defendants include the town; 9 Thru 11+1 LLC, which currently owns the land for the proposed project; and Morant Properties LLC, the New York-based company behind the proposal.

The lawsuit alleges the oceanfront property being considered for the condo-hotel has existing deed restrictions that were imposed by the town’s founder George Tyson, and those restrictions prohibit the land from being used for non-residential purposes and hotels.

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Atlantic Beach Town Manager Benjamin Quattlebaum declined to comment on the lawsuit. Morant Properties and 9 Thru 11+1 LLC could not be reached.

However, in town planning documents, Morant said the project could boost the town’s tourism and marketability, increase the town’s land and home values, create more employment opportunities and bring in an estimated $9 million in tax revenue.


“Our development is just a stone’s throw from the heart of the community,” Morant Properties said in town planning documents. “The intention of the Black Pearl is to be the new sought-after location for both local and national organizations.”

The $80 million complex could feature a banquet hall, meeting and conference rooms, exercise rooms, indoor and outdoor pools, a spa and sauna, gift shop and dedicated space for Town Museum artifacts and memorabilia, according to public records.

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However, the lawsuit cites several examples of deed restrictions that do not allow the land to be used for hotels or other non-residential purposes.

One of them is Pearl Beach Section 11, one of the four parcels of land owned by 9 Thru 11+1 LLC. The lawsuit states that Tyson initially conveyed the plot of land to Irene Cherry on or about Sept. 16, 1941.


“This conveyance is made subject . . . to restrictions that same shall not be used for any purposes other than resident[ia]l purposes,” the deed to the land states, according to the lawsuit. “This restriction is binding alike on both the grantor and grantee, their heirs and assigns, same constituting a covenant running with the land.”

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Then, Tyson reportedly conveyed Pearl Beach Lots 9 and 10, two other plots of land owned by 9 Thru 11+1 LLC, to the Atlantic Beach Company around March 23, 1943. The company subsequently transferred the two lots to Mildred Mason on May 13, 1944.

“This property shall only be used for residential, club house (not including hotel) or boarding house purposes,” the deed, as cited in the lawsuit, states. “The conditions, limitations and restrictions hereinbefore shall be deemed covenants running with the land, binding on both the grantor and grantee, their heirs, successors, and assigns.”


The fourth plot of land owned by 9 Thru 11+1 LLC is located along the oceanfront. Tyson reportedly conveyed that land, along with two other parcels, to Nannie Smith around March 3, 1936.

“There shall be no business houses on this property,” the deed restrictions state, as cited in the lawsuit. “There shall be but one residence on a lot.”

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The lawsuit states that these restrictions did not end after 9 Thru 11+1 LLC acquired the property, and the plaintiffs allege the sites owned by Morant Properties LLC have the same or similar restrictions.

The group is asking the court for a preliminary injunction to prevent the town from allowing the property to be developed in a way that violates the deed restrictions.

Although Morant’s plans call for 21 stories, the town’s planning commission, which oversees planning and zoning, has already said in town documents that the building will need to be no more than 20 in order to meet zoning requirements.


The properties being considered for the project are surrounded by several abandoned buildings, smaller beach homes and a few hotels closer to neighboring North Myrtle Beach.
 
Residents of historic Black SC town sue to stop luxury oceanfront hotel project

Atlantic Beach (copy)
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Atlantic Beach resident William Booker addresses the Town Council during a July 10 meeting. Concerned residents of the town have now sued to stop a luxury oceanfront hotel project from moving forward. Richard Caines/Staff
Richard Caines/Staff
ATLANTIC BEACH — Fearing irreversible change in their community, a group of Atlantic Beach landowners filed a lawsuit this week in an attempt to stop the development of a 21-story oceanfront hotel and condo project in the historically Black town.

“The Black Pearl of the Atlantic” condo-hotel would be located near 30th Avenue South and South Ocean Boulevard. Plans call for the complex to offer 168 hotel rooms, 36 short-term rental units, 24 luxury-condo units and 420 parking spaces along with a nearby 11-story parking garage.

“We refuse to stand idly by as a high-rise condo plan gains momentum, potentially devastating our entire community,” Traci Cooper, one of the concerned town residents, said in statement. “We will not let Atlantic Beach suffer the same fates as Bruce’s Beach, American Beach and other predominately African American beach communities, where indigenous people lose their power, voice and culture.”

Known as the Black Pearl, Atlantic Beach is home to nearly 300 residents. The town spans close to 100 acres between the city limits of North Myrtle Beach.

During the segregation era, Atlantic Beach was one of the most popular vacation destinations for Black families along the East Coast — with its hotels, nightclubs, restaurants and stores where they could gather and mingle without fear of discrimination.

In recent decades, the town has been known as the home of the Black Pearl Cultural Heritage Festival, commonly known as Atlantic Beach Bikefest.

The condo-hotel project has stirred debate for months over its potential impact on the town’s historic and cultural significance.

The group Supporters for Tyson’s Ancestral Restrictions on the Deeds (STARD) filed a lawsuit Sept. 26 on behalf of local landowners. Defendants include the town; 9 Thru 11+1 LLC, which currently owns the land for the proposed project; and Morant Properties LLC, the New York-based company behind the proposal.

The lawsuit alleges the oceanfront property being considered for the condo-hotel has existing deed restrictions that were imposed by the town’s founder George Tyson, and those restrictions prohibit the land from being used for non-residential purposes and hotels.

Atlantic Beach Town Manager Benjamin Quattlebaum declined to comment on the lawsuit. Morant Properties and 9 Thru 11+1 LLC could not be reached.

However, in town planning documents, Morant said the project could boost the town’s tourism and marketability, increase the town’s land and home values, create more employment opportunities and bring in an estimated $9 million in tax revenue.

“Our development is just a stone’s throw from the heart of the community,” Morant Properties said in town planning documents. “The intention of the Black Pearl is to be the new sought-after location for both local and national organizations.”

The $80 million complex could feature a banquet hall, meeting and conference rooms, exercise rooms, indoor and outdoor pools, a spa and sauna, gift shop and dedicated space for Town Museum artifacts and memorabilia, according to public records.

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However, the lawsuit cites several examples of deed restrictions that do not allow the land to be used for hotels or other non-residential purposes.

One of them is Pearl Beach Section 11, one of the four parcels of land owned by 9 Thru 11+1 LLC. The lawsuit states that Tyson initially conveyed the plot of land to Irene Cherry on or about Sept. 16, 1941.

“This conveyance is made subject . . . to restrictions that same shall not be used for any purposes other than resident[ia]l purposes,” the deed to the land states, according to the lawsuit. “This restriction is binding alike on both the grantor and grantee, their heirs and assigns, same constituting a covenant running with the land.”

Then, Tyson reportedly conveyed Pearl Beach Lots 9 and 10, two other plots of land owned by 9 Thru 11+1 LLC, to the Atlantic Beach Company around March 23, 1943. The company subsequently transferred the two lots to Mildred Mason on May 13, 1944.

“This property shall only be used for residential, club house (not including hotel) or boarding house purposes,” the deed, as cited in the lawsuit, states. “The conditions, limitations and restrictions hereinbefore shall be deemed covenants running with the land, binding on both the grantor and grantee, their heirs, successors, and assigns.”

The fourth plot of land owned by 9 Thru 11+1 LLC is located along the oceanfront. Tyson reportedly conveyed that land, along with two other parcels, to Nannie Smith around March 3, 1936.

“There shall be no business houses on this property,” the deed restrictions state, as cited in the lawsuit. “There shall be but one residence on a lot.”

The lawsuit states that these restrictions did not end after 9 Thru 11+1 LLC acquired the property, and the plaintiffs allege the sites owned by Morant Properties LLC have the same or similar restrictions.

The group is asking the court for a preliminary injunction to prevent the town from allowing the property to be developed in a way that violates the deed restrictions.

Although Morant’s plans call for 21 stories, the town’s planning commission, which oversees planning and zoning, has already said in town documents that the building will need to be no more than 20 in order to meet zoning requirements.

The properties being considered for the project are surrounded by several abandoned buildings, smaller beach homes and a few hotels closer to neighboring North Myrtle Beach.

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