ISSUE: Consideration of future plans for the City-owned 5-Acre Parcel at Boundary Street/Louisville Road (the Wedge).

BACKGROUND:

During the April 16 Executive Session and the May 14 meeting, City Council discussed six City-owned properties and determined a path forward on plans for four of them. Of the remaining two parcels: 1) Fairgrounds—Listed elsewhere on this agenda in accordance with Council’s agreement; 2) Wedge—Considered herein based on varied uses discussed during the May 14 meeting.

FACTS & FINDINGS:

1. Because of its shape, the Wedge Property is situated at Louisville Road and Boundary Street. The parcel comprises two Property Identification Numbers (PIN 20031 01002/20018 01011). It totals 5 acres. Its zoning as Downtown Expansion allows for a use as much as 12 stories.

2. Based on an appraisal by a City-designated appraiser with state registration, the value was determined at $5.5 million (because of the flexibility for vertical development). The appraiser completed the report in November 2019.

3. During the May 14 meeting, staff presented all of the various options that the Council discussed for future plans for the Wedge property, as identified during the April 16 Executive Session. These included:

   1. Follow a public-inclusive plan on how the 5-acre tract should be developed because of its proximity to the Landmark Historic District and value as a cornerstone of the Canal District.

   2. Follow Georgia law to exchange property with SCAD. SCAD would use the land to expand the “Bee Hive,” SCAD’s residential student complex. This provides a logical extension of SCAD’s residential complex because of its existing amenities (food service, parking garage). 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).

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

   4. Maintain as part of future development of the Canal District.

4. To clarify the exchange, staff originally proposed this option to SCAD as a way to fund without out-of-pocket expense a replacement for Police Headquarters on Habersham Street. Despite that the City moved forward with renovation of Police HQ rather than replacement, SCAD remains interested in an exchange for the Wedge Property. The City would select a project(s) estimated at $5.5 million, and SCAD would plan, design and build as a turnkey project. The needed agreement to effect the exchange is attached (previously drafted for four properties but amended for an exchange of just the Wedge).

ALTERNATIVES:

Each of the options described above offers advantages and disadvantages. The decision remains wholly within the discretion of Council based on its identifying possible uses.

POLICY ANALYSIS:

Title 36, Chapter 37 of the Georgia Code, “Acquisition and Disposition of Real and Personal Property Generally,” provides the basis for municipal sales or exchanges of property. All options will remain consistent with Georgia law and City policy.

For Consideration.