Current annexation laws are "dysfunctional" and could deteriorate the look and feel that makes South Carolina great, Gov. Mark Sanford told Beaufort Rotarians on Wednesday.

"You have this sort of bidding war between county and local municipality, and the highest bidder wins," Sanford said, addressing Beaufort Rotary Club members at the Beaufort Ramada. "That may be good in a microcosm, but in the macro, it points toward South Carolina looking more like South Florida in 50 or 100 years."

Approximately 60 million baby boomers are approaching retirement and a disproportionate number of them will move to South Carolina's coast, said Sanford, who graduated from high school in Beaufort.

"If we look at that avalanche of people that's coming our way ... one of the things we can do proactively is to set aside a little land anytime we get a chance," he said. "If it turns out we made a mistake, we can come back and sell it."

Sanford praised the Priority Investment Act, which passed the state House of Representatives in February, as a measure that would "look at ways of better coordinating how we lay out infrastructure and hopefully cause more conversations to take place between local municipalities and counties so that we don't get in this bidding war."

The bill, which was was not passed by the Senate and must be re-introduced next year, would require communication between local governments when considering investment in infrastructure like roads and water and sewer lines. Sanford has said the measure could result in better use of tax dollars and reduce sprawl.

Turning to Port Royal's waterfront development plan, Sanford said a recent agreement between town and state officials would both add value to the "great little town" and preserve waterway open space.

"I think we struck a deal that is a win-win," he said. "It allows them to build the core of their town that they've been after, but it also allows me to stay true to one of the promises I made when I ran (for governor), which is this whole notion of quality of life and how you enhance it."

Preliminary plans for the Port of Port Royal property have included a marina, apartments, parks, businesses and a hotel.

Addressing Jasper County's bid to establish a port through private development, Sanford defended the state Port Authority's attempt to gain control of the area.

"We always favor private investment whenever possible, and we want a port as soon as possible," Sanford said. "But there's this wildcard that Georgia says (the land belongs to it), so we have to go through this condemnation process to say, 'No, in fact it's ours.'"

The land in question is held by the Georgia Department of Transportation, but both Jasper County and the state Port Authority have filed suits attempting to gain control of the area.

Under eminent domain laws, land can be condemned and claimed for public use, which the Port Authority is attempting to do, according to Sanford spokesman Joel Sawyer. Jasper County's claim, on the other hand, is less likely to succeed because it plans to develop the port privately, Sawyer said.

Discussing Jasper County's claim, Sanford said, "Our belief is that you'll be hung up for the next five years in the court system if you go that particular route because you won't reach the public use litmus test." Jasper County, however, could be brought back into the project once the Port Authority completes the condemnation process, Sanford said.

Correction: This article originally misstated the status of the state's Priority Investment Act. Although the act was passed by the House of Representatives this year, it did not pass through the Senate and must be re-introduced next year.