Effingham brokers development deal for 2,600 acre Research Forest megasite (Atlanta: sales, real estate)

[Airforceguy]

I could definitely see this site pulling in some major manufacturers or perhaps an R&D project in the future. On another note, I wish GDOT would upgrade all of S.R. 21 to a freeway between Augusta and Savannah. A north-south interstate between the two would be a boon for the area.

The Effingham County Industrial Development Authority and OmniTRAX, a private railroad and transportation management company, announced Friday that they have formed a partnership to develop the 2,600-acre Research Forest tract near Rincon.

OmniTRAX will spend from $85 million to $100 million to build a road and utilities, making the property useable soon by industries large and small that want rare, dual-rail access close to the Savannah port, international airport and interstates.

It’s the biggest deal the IDA has brokered since the authority was incorporated in the 1960s, according to IDA CEO John Henry, creating a megasite and bringing the potential for thousands of jobs.

The deal means the IDA will recoup the $30 million it has invested in the land and will not have to spend any tax dollars for infrastructure to make the tract useable.

After the IDA gets its $30 million back and OmniTRAX recoups the money it invests in infrastructure and land, the profits from land sales will be split 50-50.

The land is worth an estimated $300 million once the infrastructure is built, Henry said. If the infrastructure costs $100 million and the IDA’s land investment is $30 million, that means the IDA and OmniTRAX could end up splitting $170 million in land sale profit.

Henry said optimistically the land could be sold within 10 years.

“We should be able to take care of Effingham’s needs for years to come,” Henry said.

OmniTRAX will retain all the profit it makes from fees to ship goods by rail.

OmniTRAX will connect the CSX and Norfolk Southern train lines at the site and will build a flyover from Ga. 21 to the property, which is just to the west of the Lowe’s in unincorporated Effingham County, adjacent to the City of Rincon.

Having access to both railroads will give industries the ability to play one against the other for the best shipping rates.

The only other dual rail sites in the Eastern United States are in Baltimore and Callahan, Fla., said Mike Martin, vice president of industrial development for OmniTRAX, who is based in Atlanta.

Martin said the Florida site is smaller than the Effingham site and has more wetlands. The Baltimore site has more expensive property and taxes and some lingering, expensive environmental concerns from the former Bethlehem Steel plant, Martin said.

UPDATE: Effingham brokers development deal for 2,600 acre Research Forest megasite | savannahnow.com

[Newsboy]

I just read this story on BiS. This could be a gamechanger for Effiingbam County -- much moreso than the failed film studio project. It also makes me wonder how many more similar tracts of land exist in the Savannah metro region that have been overlooked until now? For whatever reason, Savannah's key location as logistics hub for the entire eastern seaboard is really just being discovered. I'm especially impressed wth this paragraph:

“You’ve got access to two major interstates, two class-one railroads, the fourth-largest port in the United States, an international airport,” Martin said. “The only thing missing is a tunnel to China.”

These are the types of things we usually hear mentioned for why industry is gravitating to Charleston -- and yet Savannah is actually better situated than Charleston.

More evidence that Savannah is on the verge of something HUGE ... IMO.

[Airforceguy]

Originally Posted by Newsboy

I just read this story on BiS. This could be a gamechanger for Effiingbam County -- much moreso than the failed film studio project. It also makes me wonder how many more similar tracts of land exist in the Savannah metro region that have been overlooked until now? For whatever reason, Savannah's key location as logistics hub for the entire eastern seaboard is really just being discovered. I'm especially impressed wth this paragraph:

“You’ve got access to two major interstates, two class-one railroads, the fourth-largest port in the United States, an international airport,” Martin said. “The only thing missing is a tunnel to China.”

These are the types of things we usually hear mentioned for why industry is gravitating to Charleston -- and yet Savannah is actually better situated than Charleston.

More evidence that Savannah is on the verge of something HUGE ... IMO.

I agree! Especially if the joint point in Jasper gets built. I believe Savannah will be a totally different city in 20 years. This is also why I feel another north-south interstate connecting Savannah to Augusta, Greenville and Asheville is important. Atlanta's roads are already clogged and providing another alternative north-south route to I-75 and I-95 I think is important not only for the future growth of Savannah, but for Georgia and the Southeast as a whole.

[counterclockwise]

This is the same tract of land that was supposed to be a large residential development (Like Godley Station). After all of the rezoning process was completed and plans to meet the development water and sewer needs with the County's water and sewer system, the IDA condemned and purchased the land from IP development with a $30M loan from Wachovia bank for Industrial use. I never understood why the IDA would do this except for some real estate developers on the board at the time that did not want the development to take away from their developments. Except for timber harvesting the land has sat idle for nearly ten years.

http://savannahnow.com/business/2006...aise-questions