|Previous Item||Next Item|
|October 24, 2019, City Council Regular Meeting|
50. Motion to Adopt a Resolution Authorizing the Cancellation of Promissory Notes provided by the City of Savannah and Community Housing Services Agency, Inc. to Community Housing Services Agency Development, Inc. to Develop Savannah Gardens
In 2007, the Mayor and Aldermen of the City of Savannah requested that CHSA Development, Inc. secure public and private financing necessary to purchase and redevelop the former 44 acre 380 apartment distressed Strathmore Estates site. The resulting $100 million plus investments into Savannah Gardens and the public-private redevelopment partnership has transformed and revitalized the once distressed neighborhood and will include about 675 new affordable, mixed income, owner and renter occupied dwellings and about 10 acres of new public parks, sidewalks and streets. CHSA Development, Inc. secured a $7.2 million Regions Bank loan, a $2.7 million Community Housing Services Agency, Inc. loan, and $2.8 million and $2.4 million, 0% interest, grant-funded loans from the City. Through the sale of land parcels and lots for new housing development, CHSA Development, Inc. has paid off the Regions Bank loan and $610,000 to the City. With the development nearing its completion, CHSA Development, Inc. is requesting authorization to cancel the aforementioned City and CHSA Promissory Notes and the unpaid loan balances, as originally anticipated, will remain as permanent investments in the development of Savannah Gardens. Upon cancellation of its Promissory Notes, the City will enter into an agreement with CHSA Development, Inc. stipulating that any future revenue from the sale of Savannah Gardens property owned by CHSA Development, Inc. will be paid to the City.
Martin Fretty, Director of Housing and Neighborhood Services Department
Exhibit 1: Resolution - Savannah Gardens Cancel Promissory Notes.pdf