Town of Port Royal Capital Projects Commission Presentation

May 12, 2014

Existing Port Property

Purchase of the Port of Port Royal

• Town initiated closure in 2003 • Town created redevelopment plan in 2004

– Included a week long charette with ultimate redevelopment plan created by the citizens and stakeholders.

• The South Carolina State Ports Authority began their redevelopment plan efforts in 2005

• SCSPA finalized plan in October of 2006 • Legislation passed in 2006, requiring sale by

December of 2006

Purchase of the Port of Port Royal

• Three separate contracts for purchase – Port Royal Harbour – Gramling Brothers – Port Royal Development Group – Contracting pricing varied from $16,800,000 to

$26,000,000

Current Redevelopment Plan

Redevelopment Plan • Total Acreage: 317.51 Ac of Upland and Marsh Area • 51.60 Ac of Upland • 265.91 Ac of Marsh Area • Total Dwelling Units: +/- 425 DU’s • Upland Density: 8.20 DU/AC • Total Dedicated Civic Open Space: +/- 10.8 AC • Pedestrian Waterfront Boardwalk/Promenade/Trail +/-

2.9 AC • Additional Open Space at 5%: +/- 2.04 AC • Total Non-Residential Land Use: +/- 250,000 SF • (Includes 130,000 SF of existing space)

Purchase of the Port of Port Royal

• Current asking price of $22,500,000 • Appraised value unknown at this time, but less

than the current asking price • Town has created a term sheet

– Town will pay 80% of appraised value – Includes an update of the appraisal – Includes some certainty regarding environmental

issues

Purchase of the Port of Port Royal

• The benefits of the purchase: – Economic Impact – expected job creation, as

assessed by an economist hired by the Town includes potential 500 jobs(attached handout).

– Increase in the tax base, not only for Port Royal, but Beaufort County, and the School District.

Potential Fiscal Impacts at Full Redevelopment

• Annual Gross Fiscal Benefits • Revenue Source “Low Range” “High Range” • Property Taxes $646,900 $823,700 • Business Licenses $99,500 $129,400 • Hospitality Taxes $230,700 $313,800 • Accommodation Tax $174,600 $242,200

• Source: Randall Gross/Development Economics

Additional Positives to Purchase

• Beaufort County has an opportunity, unlike the others, to recoup most, if not all, of the funds with the purchase through resale of the property.

• Funds could be used to construct the necessary infrastructure and public components; thereby, eliminating the need for a TIF. All taxing entities: Beaufort County, Port Royal, and the Beaufort County School District realize a more immediate positive fiscal impact.

Port Related Projects

• Construct New Port Property Spine Road from End of Paris Ave. to Ribaut Road (New) - This roadway will traverse the full length of the current SCSPA property and will interconnect Sands Beach, redevelopment areas of the SCSPA property and Ribaut Road. This will be a 22 foot wide residential areas and 36 feet wide in commercial areas with paved roads with sidewalks, curbs and stormwater drainage. Estimated cost: $6,000,000.00

Port Related Projects

• Construct Water and Stormwater System in Redevelopment Area (New) - Construct improvements and new stormwater management systems and extend water mains as needed to accommodate development of Redevelopment Areas. Estimated Cost: $250,000.00

• Paris Ave. Park (New) - Construct a new 1 acre park at the end of Paris Ave. along the existing waterfront. Park shall include landscaping, pavilions, gazebos, shelters, boardwalk /promenades and open lawn for community events. Estimated Cost: $500,000.00

Port Related Projects

• Waterfront Promenade (New) - Construct waterfront promenade pathway along entire length of existing SCSPA property to provide public waterfront access. Construct approximately 3,000 linear feet of promenade. Estimated Cost: $400,000.00

• Tree Improvements/Pocket Parks/Landscaping (New) - Move and replant or add new trees and create pocket parks in various areas of the SCSPA Redevelopment Site. Construct pocket parks within various areas of the Redevelopment Site. Estimated Cost: $300,000.00

Conclusion

• The Port of Port Royal purchase offers the Commission an opportunity to support an economic development project that could pay for itself.

• It will provide a spark to economic development along Paris Avenue and Ribaut Road.

• The purchase would end the cycle of speculation that has caused the balance of the Town to suffer due to the uncertainty surrounding the property.

• It could potentially serve other economic interests in the County due to the existing pier and the depth of its waters.

Additional Projects for Consideration

• Resurfacing of Town Owned Roads (Renovation/Repair) - The Town owns and maintains all roadways south of Ribaut Road. Over the last three years the Town has resurfaced five street segments. The Town needs to resurface many roadways as a large number have exceeded their useful life given the type of material used to construct each particular road. The current cost to resurface one block of roadway is approximately $20,000. Currently the Town owns approximately 7.5 miles of roadway that need resurfacing. Estimated Cost: $4,000,000.00

Additional Projects for Consideration

• Add Sidewalks (Various Areas of Town) (New) - Install new sidewalks in various areas in Port Royal to provide pedestrian interconnectivity. Estimated Cost: $250,000.00

Thank you for your consideration.