printer friendly format sponsored by:
The New Media Department of The Post and Courier

THURSDAY, APRIL 13, 2006 12:00 AM

Ports Authority deposits $9.3M, moves to take river site

BY JOHN P. McDERMOTT
The Post and Courier

The State Ports Authority has filed a condemnation notice and deposited a $9.3 million check with Jasper County as it moves ahead with an effort to acquire more than 1,800 acres on the Savannah River for a new steamship terminal, adding another wrinkle to what a federal judge has called an "extraordinary" legal battle for control of the site.

The move was widely expected. It came eight days after the state Supreme Court ruled that the SPA's power to condemn property for public benefit supersedes that of Jasper, which is seeking to take ownership of the tract for a privately financed container terminal.

The county's proposed facility would directly compete for business with the state-run Port of Charleston.

The land in question is a dredge-disposal site on the Jasper County side of the Savannah River. It is owned by the Georgia Department of Transportation, which recently refused a $9.3 million cash offer for the property from the SPA. The authority said it based its price on a real estate appraisal it had done, and, as required by law, deposited a check for that amount with Jasper's clerk of court.

The SPA said in a statement that it "is following a parallel path - taking the necessary steps toward condemnation while continuing discussions with Georgia to amicably resolve the issue."

"However, the SPA is obviously committed to the necessary legal actions to acquire the site," the Charleston-based agency said.

The Georgia DOT has 30 days to respond to the new condemnation notice, said Mount Pleasant attorney Richard Bybee, who represents the land owner. Bybee said a legal challenge by the transportation department "is certainly one of its options." He declined to elaborate Wednesday.

Jasper officials began condemnation proceedings for the property more than a year ago, after striking a deal with a private maritime company to build a $600 million container terminal on the tract.

The SPA then filed a lawsuit to block the project, saying legislators gave it exclusive rights to develop and operate public ports in South Carolina. The Supreme Court disagreed with that argument last week, while at the same time finding the state has greater power to condemn land than local governments, including Jasper.

"With the decision in hand, the SPA is now moving ahead with the steps required to make a marine terminal in Jasper County a reality and hopes to avoid any unnecessary delays," the authority said in its statement.

Andrew Fulghum, Jasper's administrator, said the state's latest move does not affect the county's plans.

"We anticipated this action by the ports authority," Fulghum said. "We don't have any intention of stopping our effort to develop a terminal on that site."

Fulghum also predicted Jasper's condemnation effort would prevail. "The most important thing is that we have the money right now to do the project," he said. "Although the ports authority may be filing for condemnation, it still doesn't have a plan and it still doesn't have the financing to do the project. That's the most important thing for Jasper County, that the project is completed."

The SPA has said it plans to use funds from the sale of 1,300 acres it owns on Daniel Island to help finance future port expansions.

Regardless of the owner, the idea of a new container port down the coast is stirring some anxiety on the local waterfront, said Kenneth Riley, president of the International Longshoremen's Association Local 1422. One concern is that major steamship lines will find Jasper more convenient because it's not as hemmed in by urban growth, he said.

"That concerns us," Riley said. "Given the choice down the road . we may see larger operators looking that way instead of Charleston."

As one of the Port of Charleston's fiercest competitors, the state of Georgia isn't likely to surrender its land without a fight.

In addition to fighting Jasper in South Carolina court, the Peach State has gone on the offensive back home. It is suing the county in Savannah to block the condemnation.

Complicating all of the legal wrangling is the fact that a federal agency, the U.S. Army Corps of Engineers, holds an easement on the highly sought-after site.

"This is, to say the least, an extraordinary case," U.S. District Court Judge B. Avant Edenfield said in a ruling Sept. 19, when he denied Jasper's request to dismiss the DOT lawsuit.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com


This article was printed via the web on 4/13/2006 2:23:07 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Thursday, April 13, 2006.