In 2018, the City granted an access easement to memorialize a long existing access road across the Savannah-Ogeechee Canal to the owner (Mary Garrett) of a large rail-served industrially zoned tract located at the end of Kelly Hill Road in Garden City. The access easement provided legal and insurable access to the Garrett property. In 2020, a warehousing and logistics company Distribution Services International, Inc. (DSI) approached the City about developing its corporate headquarters together with a large, rail-served warehouse and logistics facility on the Garrett property. DSI is a locally owned warehousing and logistics company servicing Georgia Port Authority customers with 3 local locations employing 150 employees. DSI has requested an amendment to the existing access easement across the Savannah-Ogeechee Canal, as well as an additional easement across the City-owned parcel located at 1809 U.S. Highway 80 to build a new driveway for improved access connecting the proposed industrial project to U.S. Highway 80. This will create a new intersection on Highway 80 and reduce impacts to Kelly Hill Road.

The petition has been reviewed and staff recommend approval as a means of facilitating and supporting new job creation and economic development in the area while enhancing access to the City facility. State law provides the City can exchange real property for real property so long as the value received by the City is greater than or equal to the value of the property exchanged. The appraised value of the easement across the City parcel is $200,000. Therefore, the easement rights will be exchanged for at least $200,000 of needed capital improvements to the City facility (real estate) located at 1809 U.S. Highway 80; said improvements to include additional paving, parking, fencing, and lighting, as well as the right to access and use the driveway as an addition point of ingress and egress for the City facility. DSI would be required to obtain at least three competitive bids from well-qualified contractors for these improvements to City property to ensure the City is getting a good value for the exchange. DSI would provide receipts evidencing the investment of at least $200,000 in improvements in the City facility. With respect to the canal crossing, the grantee would be required to make improvements to the canal area, including the installation of new culverts to assist in drainage and flow.

Recommend approval to exchange an access easement and easement amendment subject to consideration noted above, and authorization for the City Manager to execute related closing documents.

Approval