A Setback in Habersham County’s Real Estate Deal
In an unexpected outcome, the Habersham County Development Authority faced financial loss upon the sale of Pad 10, a tract in the Baldwin industrial park. This parcel, totaling 14.46 acres, was handed over to Precision Digital for the installation of a high-tech facility dedicated to advanced computing, housing of data centers, and cryptocurrency mining operations. The chosen location, just opposite the Habersham County Airport Terminal, featured 3.83 buildable acres that were valued at $45,000 per acre, leading to a sale price of $172,350.
However, in this transaction brokered by Norton Agency’s Wade Rhodes, the Development Authority agreed to undertake and cover the expenses of preliminary ground leveling and the creation of a retention pond on site.
The Costly Project’s Bidding Process
With the requirement for urgent commencement of the grading, multiple bids were evaluated last summer. The eventual winner of the bid was Lincolnton’s HD Construction, committing to a bid of $353,607.75 with a promise to complete the project in under 90 days. Despite a lower bid presented by Square Deal from Sautee, GA, HD Construction was favored because Square Deal could not meet the specified time frame.
Management and Fiscal Details
Overseeing the project was Jerry Baggett from the Public Works department, appointed as the project management liaison. Assistance was also promised by Economic Development Director, Charlie Fiveash. Habersham County CFO Tim Sims disclosed that the project’s hefty bill, amounting to $353,607.75, was funded entirely from the Development Authority’s finances, underscoring no impact on the county’s general fund.
Facts Relevant to Habersham County Industrial Park Property Sale:
– Industrial parks are common initiatives by county development authorities to stimulate local economic growth by attracting businesses.
– The sale of industrial park land usually involves appraisal, zoning, and environmental considerations before a sale can be finalized.
– Development authorities often engage in sales below market value as an incentive for businesses that are expected to bring economic benefits such as job creation.
– Costs such as site preparation, which includes grading and the creation of retention ponds, can significantly impact the financial outcome of real estate transactions.
– Evaluating bids for construction projects typically involves considering not just the cost but also the timeline for completion and the reputation and reliability of the contractor.
Key Questions and Answers:
– Why was Precision Digital chosen as the buyer for the tract?
Precision Digital was selected for its commitment to constructing a high-tech facility that would likely contribute to the advancement of the local economy through technology.
– What contributed to the financial loss for the Habersham County Development Authority?
The financial loss was due to the Development Authority covering the additional expenses of ground leveling and creating a retention pond, which together surpassed the sale price of the land.
Key Challenges or Controversies:
– Determining a balance between attracting businesses and making financially advantageous deals for the Development Authority.
– Deciding on whether to accept lower bids with longer timelines or higher bids with quicker completion promises during the bidding process for development projects.
Advantages and Disadvantages:
– Advantages:
– Attracts new businesses and industries to the county, potentially enhancing economic development.
– Creation of job opportunities for local residents.
– Disadvantages:
– Financial loss for the Development Authority in this particular sale.
– The potential for criticism from the public if the benefits of the sale do not quickly materialize in the form of local economic improvements.
Please note that while the URL to the primary domain of the Habersham County Development Authority would usually be inserted here, I do not have the ability to browse the internet to verify the current web address. As such, no link can be provided, but you can typically find such information by searching for the official website of the Habersham County Development Authority in your preferred search engine.
The source of the article is from the blog maltemoney.com.br
