On August 3, 2017, the City entered into a Master Development Agreement for the development of the 55-acre site east of the Historic District, which was formerly named the Savannah River Landing, and is now known as Eastern Wharf. The agreement contemplated the development of the project in phases. The City agreed to fund, own and operate two parking garages containing approximately 1,400 spaces, utilizing bond financing through the Downtown Savannah Authority. The developer has now obtained financing and is ready to begin Phase 1 of the project, which will include a 700-space City garage, approximately 306 apartments, approximately 398 privately owned parking spaces for the apartments, and approximately 30,000 square feet of retail space.

The developer anticipates investing in excess of $90 million, between equity and debt on the private development portion of the project. Bond financing for the first phase garage will not exceed $33 million.

The developer will receive an option to rent up to 800 total spaces in the two City garages, at market rates set annually by the Revenue Ordinance, or at a set rate which will include the total capital cost of the spaces, total annual operating costs, a financing fee and a payment in lieu of taxes. The City will be obligated to fund construction of the Phase 2 garage, containing an additional 700 spaces, when it requests that the developer build the garage, or when the developer provides assurance satisfactory to the City that it will build apartments or an office building which are anticipated to create the demand for the second garage. The documents in:

1. Phase 1 Project Development Agreement; [Note that items 2 through 5 below are exhibits to this agreement]
2. Development Management Agreement;
3. Disbursement Agreement;
4. Condominium Declaration;
5. Parking Option Agreement.

The final documents will also include an Inter-creditor Agreement between the lenders, the developer and the Downtown Savannah Authority, which will allow the lenders to cure certain defaults in performance by the developer under the agreements, and, in that event, to assume the position of the developer with respect to the project.

Adoption of the motion will authorize the City Manager to enter into the agreements contemplated by the attached documents, including .the Inter-creditor Agreement, as they may be amended with the approval of the City Manager and the City Attorney.

Approval