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September 12, 2024, City Council Regular Meeting
Title
53. Authorize the Sale of Timber at the New Hampstead Conservation Tract. The City obtained a forest stewardship management plan from the Georgia Forestry Commission (GFC) to assist the City in safe and productive management of this important property and recommended the City engage an experienced forestry management consultant and timber broker to implement the forestry management plan.
Strategic Priority
Good Government
Description

The City of Savannah accepted the donation of a 863.29 acre conservation tract of land from Figure 8, LLC in 2020. This tract is situated along New Hampstead Parkway at Little Neck Road, west of I-95 and south of I-16. The tract is encumbered with a Conservation Easement held by North American Land Trust. Staff obtained a forest stewardship management plan from the Georgia Forestry Commission (GFC) to assist the City in the safe and productive management of this important property. The GFC recommended the City engage an experienced forestry management consultant and timber broker in order to implement the forestry management plan. Accordingly, the City implemented this recommendation and City Council awarded an annual contract for forestry management consultant and timber brokerage services to Marsh Forestry and Appraisal Services (Marsh).


Prudent management of this important conservation tract requires periodic timber harvesting and thinning of underbrush to prevent fires, provide room for remaining trees to grow, and to provide re-planting opportunities in areas where the prior owner has previously cut and/or thinned forested areas. Periodic harvesting also provides revenue to help offset management costs associated with maintaining access trails, fire breaks, wildlife habitat, and security. Marsh recently posted an invitation to bid on behalf of the City and advertised a timber sale associated with +/- 285 acres of the property. Twenty-two regional timber companies were contacted and invited to bid. Five bids were received, and the highest bid was submitted by Gillis Ag & Timber, LLC at a price of $265,500.

 

Marsh (timber broker) reports that the City will net at least $249,570 from this sale after paying the requisite six percent (6%) broker commission to Marsh. Furthermore, authorize staff to use these funds to establish and maintain trails, fire breaks, enhance wildlife habitat, and replant harvested areas with new pine seedlings to generate a new generation of forests on the property.

Recommendation

Approval

Contact
David Keating, Senior Director, Real Estate Administration Department
Financial Impact
Revenue of $249,570
Review Comments
Attachments
Exhibit 1: Map Attachment - New Hampstead.pdf
Exhibit 2: Timber Harvesting Agreement - New Hampstead.pdf
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