Economic Development in Paradise

Residents of Hilton Head Island created a town government in 1983 to slow down growth and "preserve paradise" by imposing tighter land-use controls. Over the years, critics of this approach have caricatured the town’s initial strategy as: "Now that we are here, let's blow up the bridge!"

The bridge, of course, is still standing, and for many years, Hilton Head continued to grow rapidly. The total assessed value of the island's real estate nearly doubled from 1990 to 2000 and doubled again from 2000 to 2010 — due partly to growth and partly to appreciation of existing property. During the recession of 2007-2009, however, development slowed dramatically, and the average value of single-family homes fell from more than $1 million to less than $670,000, while the average value of condos dropped from $449,000 to $249,000. Those values have not recovered. Also, the average age of the town's residents has increased from 40 in 1990 to 51 in 2010, and it is expected to move higher as the market continues to transition from second homes to retirement homes.

Kirkman speaks passionately about creating the missing rungs on the island's socioeconomic ladder by attracting small business owners who could live and work virtually anywhere that has good Internet access. "If you can locate your business anywhere," he says, "why not locate it in a place where you would love to live?"

Kirkman says he is optimistic about the island's future, but he concedes that it feels strange "to be hired as the first economic development director for a town that was formed for the specific purpose of opposing economic development."