At the October 10, 2019 City Council workshop, Savannah Harbor Associates (SHA) introduced plans for a $400 million mixed-use development on Parcel 5 on Hutchinson Island. The parcel is east of Slip 1, adjacent to the Westin Resort. Phase 1, which will be underway in Spring 2021, totals about $130 million and will include a marina and a residential-retail complex but includes a 9-acre public waterfront park.

Future phases will begin thereafter, including a boutique hotel. SHA is asking the City of Savannah to help fund infrastructure that will be publicly owned or dedicated, including streets and sidewalks. Rather the City paying out of pocket, the City would use incremental new taxes generated by the taxable value of development. Unlike other similar agreements (i.e. Plant Riverside, Eastern Wharf), SHA would not need funding until after the development becomes completed and generating tax.

Based on the City’s policy that the incremental new taxes must generate 120% of the annual debt service payment, projections indicate that the new development could fund $12.5 million in infrastructure; however, the final amount will be determined by the actual taxable value generated by the development. The acquisition will be at confirmed cost based upon the actual amount that the Chatham County Tax Assessor’s Office books.

In addition, the City’s commitment to pay for the Infrastructure Improvements will be conditional upon completion and acceptance of the Infrastructure Improvements by the City. Attached is a copy of the proposed Development Agreement, which the City Attorney’s Office has reviewed and concurred as to proper format.

Approval