Georgia Code O.C.G.A. 36-37-6(c) provides the City the authority to exchange real property with private entities, provided the property received is equal to or greater in value than the property being exchanged.

Staff is seeking Council’s authorization to trade 0.68 acres of City-owned real property located on the 600 block of East Broughton Street (PINs 2-0005-20-001, 2-0005-20-002, 2-0005-20-003, 2-0005-20-005 & 2-0005-20-006) as well as 12 acres of vacant undeveloped industrial property off Feeley Avenue (PIN 2-0048-03-001; 2-0047-01-001; and some additional minor adjacent parcels).  These parcels would be traded to acquire 32.77 acres of real property owned by Row Pine Development, LLC (Row Pine), consisting of thirteen (13) commercial parcels within the Highlands area of Savannah (PINs 2-1016-02-091; 2-1016-02-092; 2-1016-02-093; 2-1016-02-107; 2-1016-02-108; 2-1016-02-109; 2-1016-02-110; 2-1016-02-111; 2-1016-02-113; 2-1016-02-114; 2-1016-02-115; 2-1016-02-116; and 2-1016-02-117). 

The City is planning to develop the Highlands parcels as a future municipal center annex with recreation facilities, ballfields, playgrounds, and a police substation.  The property is currently zoned light industrial, and the property was planned for light industrial uses.  The proposed City plan would reduce future truck traffic and provide amenities to residents.

The City-owned parcels on Broughton Street are improved with pavers and are being used as parking.  The land was originally purchased with the intent of constructing a new parking garage.  Since the time of purchase, the City has decided to build a new parking garage in conjunction with the Eastern Wharf project.  As a result, this property on Broughton Street is no longer needed for the purpose for which it was acquired.  The property is encumbered by a parking reservation, in favor of the prior owner.  Row Pine is aware of this encumbrance and will seek to negotiate a mutually agreeable resolution with the prior owner during it's due diligence period so the property can be redeveloped with apartments.

The Broughton Street site was acquired with funding from the Parking and Mobility Enterprise Fund.  If exchanged, the Enterprise Fund basis of $951,323 in the property will be repaid by general fund revenues over five years at 2 percent interest. 

The City-owned parcels off of Feeley Avenue are also undeveloped.  They were originally acquired for floodplain mitigation for the arena project, but the floodplain ordinance has since changed requiring on-site mitigation.  The parcels are zoned industrial and enjoy railroad frontage.  However, these lands are low and will require fill, and also contain a significant amount of wetlands and construction debris.  These parcels were acquired with Westside Land Acquisition funds, and these funds would not need to be repaid since the Highlands property is located on the Westside of Savannah, and will be acquired for general government purposes.  Thus, a like-value exchange for book value would be made by the City to account for the trade of this parcel.

Initial estimates of value established by third-party appraisers are as follows:

• City Broughton Street Parcels: $2.55 Million
• City Feeley Avenue Parcels: $1.24 Million
• Total City Property Values: $3.79 Million

• Row Pine Property Values: $3.50 Million

The appraiser of the City’s Feeley Avenue parcels did not have any wetland information at time of valuation.  However, a wetland consultant has since visited the site and reports aare wetlands present on the site.  Therefore, if this conceptual deal is approved by Council, staff will engage the appraiser to update the appraised value of the Feeley Avenue parcels to reflect wetlands, fill, and debris related impacts.  It is expected the value of the City's contribution to this exchange will decrease based on these conditions.

Once appraisals are updated, the City will only trade if the appraised value of the property received from Row Pine is greater or equal to the value of the property the City will grant to Row Pine.  Further staff is requesting authorization for the City Manager to execute all associated closing documents and deeds based on this stipulation.

Approval