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May 14, 2020 City Council Regular Meeting
Title
48. Approval to Proceed With Plan For Properties Discussed During April 16, 2020 Executive Session. Properties are the Dundee Street Parcel, President/Bryan Street Parcel, Wedge Parcel (Louisville and Boundary Streets), Louisville Industrial Tract and Powder Magazine Tract (U.S. 17).
Strategic Priority
Good Government
Description

During the April 16 Executive Session, Council discussed alternatives for future uses on six City-owned parcels.  Staff presented options based on how future use of the six properties would meet the Council's priorities but also related expressed interest from buyers, for community purposes, or other City purposes.  Since the Council did not take votes (i.e. Executive Session) and without clear direction, the City Manager then sent a memo on April 20 that summarized the Council's major discussion points and outlined general consensus on differing plans for each of the parcels.  In general, based on Council consensus plans for the properties could be grouped into two general categories.  1) Properties of varied interests to the City and neighborhoods that should follow an inclusive public process to determine future use of the properties.  

Properties under Category 1 will follow a community planning process that will be coordinated by the City's Department of Urban Planning and Design and the Housing and Neighborhood Services Department.  Category 2 properties will be offered through a Request For Proposals (RFP) process that will designate the properties for community use by a non-profit organization (501(c)(3).  The RFP would provide highest points to plans that can expand or improve homeless services.  In the instance of Category 2 properties, preference in points will be awarded for the service plan to improve homeless services and not the offer of price.

1. Powder Magazine Tract (PIN 20836 02002)—Follow an inclusive public process on the 15-acre tract (about 10 acres developable with some wetland mitigation required).  Agreement to protect historic 1890s building.  Two other options:

Option 1A:  Protect and restore the 1890s historic building (Power Magazine) but also create a conservation plan for the balance of the property to include an interpretive center and nature trails.

Option 1B:  Maintain the historic Powder Magazine and surrounding property but subdivide balance of property for other uses, if any, as determined by public process.

 

2. Wedge (Louisville and Boundary, PIN 20031 01002/20018 01011))—Follow a public-inclusive plan on how to develop the 5-acre tract because of its value as a cornerstone of the Canal District.  Three other options:

Option 2A:  Follow Georgia law to exchange property with SCAD.  SCAD would use the land to expand the “Bee Hive,” SCAD’s residential student complex.  In exchange, SCAD would build a new facility for the City of equal or greater value (Georgia law authorizes exchanges of properties based on value) based on a six-month old appraisal of $5.5 million.

Option 2B:  Offer for public sale either by RFP (purpose of housing that’s affordable) or by sealed auction, per Georgia law.

Option 2C:  Maintain as part of future development of the Canal District.

 

3. Louisville Road Industrial Parcel (PIN 20029 07012)—Not discussed but some preference expressed for inclusive public process that would determine future use.  Other option:

Option 3A:  Not discussed but this site is one of several being studied as a location to establish a factory that would construct high quality houses, like those in Savannah Gardens, at a cost savings of 30+%.  The team studying this concept estimates that once fully operational the factory could reduce construction costs by up to $6 million a year, produce about $1.25 million annually for the Savannah Affordable Housing Fund, provide training and employment for up to 100 factory jobs many of which would be accessible to residents of nearby neighborhoods, and create opportunities for small business owners interested in becoming housing developers.

4. Dundee Street Parcel (PIN 20034 300011 et al.)—Continue plans to co-locate temporary homeless camp for overflow during COVID-19 but also create isolation areas to avoid outbreaks during pandemic.  Two other options:

Option 4A.  Long-term use consistent with homeless initiatives because of the property’s adjacency to the Tiny House project.  Issue a Request For Proposals (RFP) process that will designate the property for community use by a non-profit organization (501©(3)).  The RFP would provide highest points to plans that can expand or improve homeless services.  Points would be awarded for the service plan to improve homeless services and not the offer of price.

Option 4B.  Follow a community planning process that would be coordinated by the City's Department of Urban Planning and Design and the Housing and Neighborhood Services Department.

 

5. President Street/Randolph Street (former Tybee Depot land)—Six options:

Option 5A:  Issue a Request For Proposals (RFP) process that will designate the property for community use by a non-profit organization (501(c3)(3).  The RFP would provide highest points to plans that can expand or improve homeless services.  Points would be awarded for the service plan to improve homeless services and not the offer of price.

Option 5B:  Future location for Inner City Night Shelter--Convey to Land Bank Authority, which would enter into a Pre-Sale Agreement to allow Inner City Night Shelter to raise capital funds for new shelter at this location.  Upon successful fundraising, Land Bank Authority would sell land to Inner City Night Shelter for $300,000.

Option 5C:  City would design-construct-lease to Inner City Night Shelter.  According to Inner City Night Shelter, the 25,000 SF project would cost $8 million.  City would issue bond through Downtown Savannah Authority with debt service payments at approximately $600,000 annually for 20 years.

Option 5D:  Convey or sell parcel to Housing Authority of Savannah as part of the Hitch Village Redevelopment Plan (possible eastside grocery store).  

Option 5E:  Exchange property that Housing Authority of Savannah owns for needed right-of-way for widening Springfield Canal.  Georgia law authorizes negotiated sales or conveyance of properties between governments.

Option 6:  Follow a community planning process that will be coordinated by the City's Department of Urban Planning and Design and the Housing and Neighborhood Services Department.

 

6. Fairgrounds— Schedule for the May 28 agenda.

Recommendation

Approval

Contact
David Keating, Real Estate Services Senior Director
Financial Impact
Review Comments
Agenda Plus