Pine Knoll Shores has a
complex governance system. In addition to a mayor, town manager, board of
commissioners and various departments of city government, the town consists of
numerous homeowner associations. The exact number depends on how one counts
them. Some sections of town have one homeowner association, and others have a
master association with several small associations representing specific
constituencies in a larger development.
Understanding the history
and makeup of homeowner associations is one way of understanding Pine Knoll
Shores. (For background information, see post on “Early Pine Knoll Shores
Development: 1950s & 60s.”)
Development that took place prior to the 1960s
concentrated on easternmost sections of
Pine Knoll Shores. In the 60s, this area became known as “old PKS.” There was
no homeowner association included in the covenants during the earliest phase
of development.
 |
| Original Pine Knoll Shores development |
As the Roosevelts started to move development westward, they
brought new players into the picture. The development team, led by the
Roosevelts, now included management consultants from Stone & Webster as
well as engineers and surveyors with Henry Von Oesen, Inc., including Don
Brock, who would eventually work directly for the Roosevelts. This team
produced detailed surveys of the land, topography, soil analyses, and water
tables. Later, city planner A.C. Hall, local land-plan surveyor C.C. King and construction
experts with heavy equipment such as A.C. Davis joined the team. Aerial
photographs provided more topographical information. Numerous conceptual plans
and layouts were formulated during this time, designating areas for residential
housing, both single-family and condominium development; a commercial retail
complex; hotels; motels; as well as recreational
facilities, parks, marinas, roadways and transportation arteries.[i]
From these overarching concept
plans, the next area selected for development was west of the original streets,
which was legally called Pine Knoll Shores Extension, Section I through V. When implementation was
underway, the Roosevelt family, working with local Attorney George McNeill,
decided to create a homeowner association as a North Carolina corporation to
manage common areas and functions. The Articles of Incorporation for Pine Knoll
Association, Inc. (PKA) were filed with the Secretary Of State of North
Carolina on May 31, 1967.
The responsibilities of the corporation, detailed in covenants, were
quite extensive and included most of the services normally associated with
municipal government—parks, police, fire, streets, trash, water service,
enforcement of covenants, etc. The
covenants as a legal document go with the land. When property is purchased,
membership in the homeowner association goes with it. Membership is not
optional. The Ogden, UT, office of the IRS recognized PKA, Inc. as a 501(C)(4)
corporation in January 1968.
The original PKA Board of
Directors did not consist of residents. Most were men and women in some way
connected to those working with the Roosevelts to develop the property:
Charles C. King, Beaufort, NC
A.C.
Hall, Atlantic Beach, NC
Ruth
Bray, Atlantic Beach, NC
Sallie
Lutz, Morehead City, NC
George
H. McNeill, Morehead City, NC
Alberta
A. McNeill, Morehead City, NC
Mary
V. Godwin, Morehead City, NC
Charles
E. Lutz, Morehead City, NC
Ted
Hearth, Naples, FL
The address of the
registered office was 1002 Arendell St, Morehead City, which was the law office
of George McNeill. The Roosevelt family provided whatever funding was required.
PKA originally had two
classes of members. Class A members were the purchasers of lots, who
were entitled to one vote per lot, three votes
when a house was built. The tract developers were Class B members,
entitled to three votes for each lot. This arrangement, per the covenants, was
to be converted to one vote per lot no later than June 1, 1977.
The subject of combining
“old PKS” with PKA was first discussed at the PKA annual meeting in June 1967
and many times subsequently. No acceptable solution to the several legal,
technical and political impediments was ever achieved.
The Roosevelts had decided
they wanted common areas preserved for homeowners and did not wish to deed that
property to a public entity; also, they wanted a way to ensure covenants
were honored. Therefore, establishing a homeowner association for “old PKS”
became necessary. In 1972, the development team
established a new homeowner association that included
the “old PKS” properties. It was called Pine Knoll Shores Corporation (PIKSCO)
and provided a vehicle for conveying the common property from the trust and
also for maintaining architectural control according to the covenants.
After several years of debate among the
residents and owners, transition from developer-to-owner control started to take place
in January 1973 when plans were underway for the town’s incorporation.[ii] The North
Carolina General Assembly ratified a Charter for the Town of Pine
Knoll Shores in April 1973. At that time, many municipal functions that had
been handled by PKA were transitioned to town responsibility.
But, the Roosevelt Trust
still retained ownership of common areas, including all parks and canals. It
would take another four years for the Roosevelts to give up this control. On
March 29, 1977, the parks were divided between PKA and PIKSCO and conveyed by
deed from the Roosevelt Trust to one or the other homeowner association.
There is some overlap in
area covered by these first two homeowner associations, but the breakdown is
essentially as follows: PKA has 710
single-family lots; PIKSCO has 400. The PKA and PIKSCO sections of town have
the largest number of permanent residents in Pine Knoll Shores. The stretch of
oceanfront property for PKA is one half mile, and for PIKSCO, it is one mile.
PIKSCO includes the following
subdivisions, some of which, such as Pine Knoll Village, Bermuda Greens and
Bogue Pines Circle function under a sub-HOA. They have separate boards of
directors but also enjoy PIKSCO privileges:
•
Fairway Subdivision
•
Bogue Pines Circle
•
Bill Christian Subdivision
•
Pine Knoll Village
•
Fairway Villas Phase II
•
Village at the Reef
•
Bermuda Greens
PKA is responsible for
Ocean Park and Ramsey Park. In addition, it maintains three canal-based
marinas—Brock Basin, Davis Landing and Hall Haven. PKA
also
holds the deed to King’s Corner Park, a small canal-front
parcel that has no road access: the park includes three walkways that link to 11 lots.
The original intent of this arrangement is unclear; perhaps it was a marketing
gimmick to give those lots more appeal.
Because all canals are in
the PKA district, their maintenance, including dredging, falls to PKA. PKA
holds the deed to the bottom of the Pine Knoll Waterway. This extensive canal
system, designed by A.C. Hall, was initially built to drain the land for
development as well as to provide the benefits of waterfront property. Many PKA
residents have homes on the canals with private docks and boat lifts for the
ultimate in boating convenience.
PIKSCO
is responsible for two sound-side parks and one oceanfront park, which
provide members with multiple-use facilities and easy water access. Garner Park
features seasonal kayak and canoe storage, a dock/fishing pier and a large
picnic pavilion with barbecue grills and playground. McNeill Park, situated on
the point between the sound and McNeill Inlet (a canal access), provides a
boat-launching ramp with fishing/swimming pier, picnic pavilion and playground.
PIKSCO also oversees Morgan Hammer Park, an oceanfront park with private beach
access for residents.
Memorial Park, another
oceanfront facility owned by PIKSCO, is leased to the town to help fulfill
federal public beach access requirements. In compliance with federal guidelines,
the town has established and maintains 11 public beach access sites with
parking and in some case amenities. These public access sites are located
approximately every half-mile along the five-mile oceanfront of Pine Knoll
Shores.
There are no pools or tennis
courts maintained by the PKA and PIKSCO homeowner associations.
However, there is a reciprocal-use agreement between the two associations
allowing members mutual use of the parks and facilities, except for boat slips,
which may only be leased by members of PKA.
As is mandated with PKA
properties, membership in PIKSCO occurs automatically when a PIKSCO-designated
property is purchased. Each association is
governed by a board of directors made up of homeowners/members who manage the
corporation and make sure it fulfills its responsibilities to the membership.
Day-to-day operations include issuing gate cards and stickers, renting boat
slips or kayak spaces, renting the parks for private functions and, of course,
collecting yearly dues. Most importantly, each association monitors its parks
and marinas continuously to ensure they are safe and well maintained. The
boards of directors function as liaisons between town officials and homeowners to
keep them informed of administrative decisions that may affect them.
There is no community
wastewater treatment facility in the parts of town developed before the mid-1970s:
homeowners have septic systems. The early concept plans for developing the
Roosevelt property included a centralized sewer system, but the state would not
grant approval. When plans were submitted for a canal system, the Director of
the North Carolina Department of Health included in his endorsement that canals
would help in mosquito control and lower the water table, thereby improving
septic-system function.[iii]
On September 24, 1984, PKA,
Inc. filed amended Articles of Incorporation with the Secretary of State
officially dropping the many municipal functions and identifying that it now
operated under section 528 of the Internal Revenue Code, in effect also dropping
the 501(C)(4) designation. Since that time, PKA has focused its efforts on the
recreational use of the park properties for the benefit of the property owners
and enforcement of PKA covenants.
Meanwhile, development
plans continued for the oceanfront and remaining sound-side property in Pine
Knoll Shores. (See Homeowner Associations Part II- Beacon’s Reach.)
Post Author: Walt Zaenker & Jean Macheca with input from Linda Cumberland
To contact the author or the History Committee
To contact the author or the History Committee
[i] A
large collection of these concept plans are available for review at the PKS
History Committee archives, located in Pine Knoll Shores town hall.
[ii]
The History of Pine Knoll Shores, by Ken Haller, archives of PKS History
Committee
[iii]
Letter from J. W. North endorsing canals, June 18, 1965, archives of PKS
History Committee