Racing to meet a federal deadline, the State Ports
Authority and the city of North Charleston on Friday divided up the remaining
land at the city's former Navy Base, including a highly contaminated section
that would cost millions to clean up.
The land is vital to the Noisette Co.'s proposed residential development and
is linked to the SPA's plans to build a new $600 million terminal elsewhere on
the old base.
The agreement the SPA and the city signed off on Friday lays the groundwork
for the federal government to hand over 500 acres of base property. The SPA
needs some of the land for operations at its Veterans Terminal and the city of
North Charleston has plans to sell other parts, including the
Noisette-designated property and the Charleston Naval Shipyard, for a hefty
profit.
North Charleston's acquisition of that land on the northern end of the base
also is integral to the SPA's plans for a new terminal on the southern end. The
city agreed two years ago that if it got the land for free from the federal
government, it wouldn't fight the SPA's controversial expansion plans.
Transfer of the property has been held up for the past year, however, as the
groups debated over who would be responsible for cleanup of about 100 acres, a
highly contaminated area that used to be a landfill. Cleanup of the site could
cost millions of dollars, and officials are uncertain whether it might ever be
suitable for redevelopment.
The Navy gave the state and city until Friday to decide who would get the
land. It planned to start selling off the entire 500-acre property at market
value if no decision had been made by the deadline.
Gov. Mark Sanford's office and the state Department of Health and
Environmental Control were hesitant to approve a land agreement until the
contamination issues were resolved.
North Charleston Mayor Keith Summey said Friday that Sanford signed off on
the contract and that the governor's office had faxed it to the Navy's
Charleston office a little after 4:30 p.m. The Navy's deadline was 5 p.m.
Sanford's office did not return phone calls Friday.
In the final transfer deal, North Charleston agreed to take the contaminated
land and hold on to it for 20 years, giving the SPA a chance to decide whether
the property is needed for future terminal expansion. North Charleston also
agreed to provide up to $1 million to clean up the area should the SPA choose to
develop there. It was unclear how cleanup costs that exceed $1 million would be
covered.
"We had to think out of the box again to make it work," Summey said Friday
afternoon after meeting with the governor in Columbia. "We were all going to
lose if we didn't come to some agreement. (Our liability) concerns us, but it
was the only way I could get there. The benefits far outweigh the risks."
SPA chief Bernie Groseclose said earlier Friday the port authority shares
North Charleston's concerns over future cleanup of the contaminated site, but he
said immediate transfer of the land was necessary. He added that both the SPA
and the city had asked the Navy for an extension of its deadline, but were
refused.
"(The agreement) doesn't eliminate our concerns, but it relieves our
objections to the transfer of property," Groseclose said.
North Charleston City Council approved the land contracts Thursday evening
with a vote of 7-1, with Councilman Steve Ayer dissenting.
"I don't feel comfortable with what happened," Ayer said Friday. "We could be
held liable for a million dollars' worth of cleanup and I don't think the city
needs to be held responsible for anything on that base. If there wasn't going to
be a problem down the road, the land would have been transferred months ago."
Other parts of the old Navy base were divided in previous deals. The Noisette
Co. already has control of 200 acres for its planned 300-acre residential
community. The multimillion-dollar redevelopment project, which has the strong
backing of Summey, is billed as a way to reinvigorate an economically depressed
part of the city.
Another 300 acres on the southern end of the base are designated for the
SPA's proposed terminal, a project port officials deem necessary for the
land-strapped Port of Charleston to expand and stay competitive.
The Navy's redevelopment authority controls remaining parts of the old base,
which closed in 1991.
Kris Wise covers ports and trade. Contact her at kwise@postandcourier .com or
937-5496.
