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December 6, 2018, City Council Regular Meeting
39. Motion to Amend the Development Agreement with North Point Hospitality Group, Inc. for Project on East River Street
Strategic Priority

On December 12, 2013, the City of Savannah entered into a development agreement with North Point Hospitality Group, Inc., for a commercial hotel and retail center located adjacent to East River Street and East Bay Street consisting of 200 equivalent residential units. The project is located within the Morrell Park/Marriott Hotel Special Regional Connection Fee Area.

The development agreement extends and makes additions to existing water and sanitary sewer systems for the construction of water distribution and sanitary sewer collection and disposal systems to serve the project through December 12, 2018.  The development agreement outlines the following:

  • Use of a registered engineer in the State of Georgia;

  • Approve use of Hussey, Gay Bell & DeYoung as the Project engineer;

  • Abandon the gravity sewer main along River Street to its termination manhole in the East Bay/General McIntosh right of way leaving a portion of the line near the former SEPCO building to provide sewer service to the project;

  • Utilize a special regional connection fee to recover costs associated with increasing the capacity of a City sewage lift station to serve the project and to recover costs of relocating a portion of the existing sewer force main along the south side of River Street;

  • Assign the developer the responsibility to design, bid and construct the relocation described with the developer reimbursed by the City not to exceed $175,939.32 for the cost of designs, bidding and construction abandonment of the gravity sewer main and the relocation of the sewer force main (developer’s work);

  • Require two bids for the developer’s work;

  • Submit pay requests to the City for reimbursement of the developer’s work;

  • Render the City harmless for any claims and damages to work associated with the tie-on to existing sanitary sewers;

  • Require the developer pay for water and sewer fees upon completion, except for the sewer treatment facility and the water supply facilities, and accept title and assume responsibility for maintenance and operation of those portions located within public easements or rights of way;

  • Require the developer to provide to the City a recordable plat(s) showing all utilities within public easements and/or rights of way to be owned and maintained by the City;

  • Require the developer to pay for a sanitary sewer tap-in fee paid to the City for each residential or equivalent residential unit and separate water meter installed and a water tap-in fee and water meter installation fee paid for each residential or equivalent residential unit as set forth in the Revenue Ordinance;

  • Require the developer to pay to the City a proportionate share of the capital cost for expanding wastewater treatment and/or transport facilities and of meeting discharge requirements as established by Georgia Environmental Protection Division;

  • Allow for the development agreement to be assigned to a related entity of the developer during project development and prohibit the transfer of the development agreement without City approval; and

  • Apply all provisions of law relating to water and sewer service by the City.

North Point is requesting to exercise the term of the development agreement and extend it for an additional two-year period to December 12, 2020.



Heath Lloyd, Infrastructure and Development
Financial Impact
Review Comments
Agenda Plus