The City-owned real property located at 701 Montgomery Street is under contract for sale to Lookin Good Properties at a price of $980,000.00. The buyers have made progress on entitlements with the City of Savannah Zoning Department, Metropolitan Planning Commission, and the Savannah Historic District Board of Review, and are preparing to close on the transaction.

Though the property lies within Flood Zone X, a low-risk flood zone according to the Federal Emergency Management Agency (FEMA), the buyer has recently discovered the property is also located in an area with drainage issues that contribute to localized flooding. Due to this fact, expensive additional on-site retention measures are required to support future development, and the costs associated with these additional drainage improvements have been estimated at $225,000.00 to $250,000.00. As a result, the buyer has requested a price reduction to help offset some of these unexpected costs.

Staff has negotiated with the buyers a $100,000.00 reduction to yield a revised price of $880,000.00. The buyer is expected to close on February 12, 2018.

Approval