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Court rules Jasper has right to build port

State Ports Authority has condemnation power over county

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RIDGELAND -- The S.C. Supreme Court ruled Monday that Jasper County has the right to build a commercial port on the Savannah River but reaffirmed that the S.C. State Ports Authority's condemnation powers supersede the county's.

Web Extras

Complete text of S.C. Supreme Court's ruling
Ports in the Storm: A three-part series from The Beaufort Gazette about Jasper County's push to build a port on the Savannah River

Both sides in the battle over who has the authority to build a port on the Savannah River claimed victory Monday, and the governor's office said it hoped to sit down with both parties to discuss the decision.

The Ports Authority argued before the high court in September that it has

exclusive rights over maritime port development in South Carolina and filed suit against Jasper County in January 2005 to support that stance. Eight months later, the court determined the county has the right to build on the Savannah River but not without a qualification.

Jasper "County has the power and authority to create a county-owned public marine terminal on the Savannah River, and this power is consistent with the Constitution and general law of the State," Monday's opinion reads. "However, (the State Ports Authority's) right of condemnation is superior to (Jasper's) right."

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Jasper reached a $600 million, three-tier finance, construction and management agreement with SSA Marine -- a Seattle-based company and one of the world's largest port builders -- in January 2005. The plan calls for the county to own the land, collect a percentage of the profit and collect a per-container fee, which could translate into millions of dollars in annual windfall for the rural county.

Shortly after the agreement was signed, Jasper filed for condemnation of the 1,887 acres owned by the Georgia Department of Transportation, a move that was put on hold by state and federal courts while the Supreme Court mulled Monday's ruling. Although the county's condemnation claim is pending, the Ports Authority's condemnation power is superior and theoretically could trump Jasper's land grab, the high court ruled.

But Jasper officials said they weren't concerned.

In the condemnation process, the agency seeking the land must assess a fair market value based on highest and best use. Jasper offered Georgia $8.5 million for the Savannah River acreage, an area that Georgia considered to be a site for dumping spoils from dredging for the Savannah port. With the county agreement with SSA Marine and a state Supreme Court blessing, if the Ports Authority were to condemn the land over the county, the fair market value would be as a port site, the price stratospheric, said Marvin Jones, the county's attorney.

"For (the Ports Authority) to condemn the interest of Jasper County, they're going to have to pay what it's worth in Jasper County's hands, that is, as a port site," he said.

Shortly after Jasper County filed a notice of condemnation against Georgia in January 2005, the State Ports Authority started the process by requesting access to the land in order to draft an appraisal, which has not been completed.

TWO WINS

The decision had both sides claiming victory Monday.

"Our authority to own and operate a container terminal has been confirmed and now it is time to build it," Jasper County administrator Andrew Fulghum said Monday morning.

Ports Authority officials wouldn't talk about the decision, but issued a press release titled, "Supreme Court Sides with State on Jasper Port Site."

Monday's Supreme Court ruling predicted the dilemma, noting the state's condemnation powers and Jasper's right to build ripened the "seeds of a controversy."

The State Ports Authority's enabling legislation, passed by the General Assembly in 1945, says the agency has the power "to promote, develop, construct, equip, maintain and operate a harbor or harbors within this State on the Savannah River."

After citing that legislation, state law and a half-dozen decided court cases, the high court found: "no language prohibiting entities other than the (State Ports Authority) from developing a terminal on the Savannah River."

But, in addition to superior condemnation, the state agency has an overseer role on the waterfront.

The State Ports Authority "has general supervisory powers over owners of terminals, including any terminal owned by" Jasper, the decision reads.

Harry Butler, the former chairman and current treasurer of the State Ports Authority's board of directors, refused to comment Monday.

Bill Stern, chairman of the board, could not be reached for comment, but praised the ruling in an afternoon press release as a State Ports Authority victory.

"We appreciate the Court's consideration," the release said. "With their decision in hand, we're moving forward with steps to acquire the site."

Stern sent a letter to the Georgia Department of Transportation on Monday afternoon, according to the press release.

In Jasper County, balloons, cake and sparkling grape juice were part of Monday's County Council meeting.

"It's time for the Ports Authority, the governor and the legislature to get behind Jasper County and get this thing done," said Jake Coakley, the vice president with SSA Marine who spearheaded the project with the county.

The sentiment was echoed in a press release from U.S. Rep. Joe Wilson's office.

"As Jasper officials work together to get their proposal back on track, I encourage (Gov. Mark Sanford) and the Legislature to support Jasper County's efforts," the release from the South Carolina Republican stated.

Joel Sawyer, a spokesman for the governor, said Sanford is reviewing the decision, but he hopes to bring both the county and the Ports Authority together for discussions.

Jasper's Columbia delegation celebrated the ruling.

"The court validated and verified what we in the county thought all along," said state Sen. Clementa Pinckney, D-Ridgeland. "I believe this is one step closer to cashing that $600 million check. This puts us one step closer to some of the biggest economic development opportunities for South Carolina."

Gladys Jones, vice chair-woman of the Jasper County Council, danced into the council chambers Monday, and Coakley led the group in a toast of sparkling grape juice.

"I feel like Buzz Aldrin," Coakley told the group. "We've taken so many one-steps forward and one-steps back, I feel like we've finally taken a giant leap forward."