The Mayor and Aldermen of the City of Savannah (City) entered into a Purchase and Sale Agreement (PSA) with P3JVG, LLC (P3) on April 20, 2023, for the sale and future development of the former Fairgrounds. The sale was based on a proposal submitted by P3 to redevelop the Fairgrounds with a mixed-use project to include housing, film studios, a creative workforce innovation center, neighborhood commercial uses, an indoor sports facility, outdoor sports fields and courts, playgrounds, a nature preserve, and more. The PSA required the City and P3 to negotiate, finalize, and enter into a Development Agreement (DA) prior to the sale of any portion of the property. The City and P3 have now concluded negotiations and finalized the DA, and the sale of the first phase is expected this summer.

The PSA has been amended to reflect minor changes in planned phasing of the project; including the development of single-family and townhome units in Phase 1 rather than a senior housing project. The senior housing project is expected to occur in Phase 2 instead. The overall purchase price remains unchanged at $2,000,000.

Phase 1 of the DA obligates the City to fund the development of a new sewer lift station and off-site force main needed to provide requisite sewer services to the project, and to fund off-site improvements to Meding Street. The City will also be retaining 70 feet of frontage of the Fairgrounds to widen the Meding Street right-of-way with future plans for sidewalks, bike lanes, a median, and traffic calming features. This phase 1 infrastructure is expected to cost about $6 Million and is needed to provide additional sewer and traffic capacity in the area. Phase 1 of the DA requires P3 and partners to fund all on-site infrastructure (roads, utilities, drainage, sidewalks, lighting, etc.) and to build 30 single-family homes and 20 townhomes. The on-site infrastructure is expected to cost about $3.1 Million, and the 50 additional housing units are expected to cost approximately $11 Million, for a total investment by P3 and partners of approximately $14.1 Million. Development costs, allocations of those costs among the parties, and funding commitments for future phases will be negotiated among the parties prior to any future phase sales and will be subject to City Council approval. The City retains termination and reversion rights in the event P3 fails to fulfill its obligations.

Recommend approval of the Development Agreement and Amended Purchase and Sale Agreement, and authorization for the City Manager to execute these documents and associated future closing documents.

Approval