Authority calls for limited private interest in Jasper and Charleston port projects
Move effectively kills compromise in case headed to Supreme Court
Published Wednesday August 17 2005
By MICHAEL R. SHEA
The Beaufort Gazette
The S.C. State Ports Authority on Tuesday approved a motion limiting private participation in proposed state-run projects in Jasper and Charleston counties, effectively killing Jasper's attempt at a compromise with the state on plans to build a $450 million port on the Savannah River.

On a motion made by Carroll Campbell III, the authority's board of directors voted 5-3 not to consider a so-called landlord-tenant port model for either project, which would allow the state to lease land and facilities to a private terminal operator.

Jasper, which reached an exclusive $450 million development agreement with SSA Marine in January, has been met with a S.C. Supreme Court challenge from the Ports Authority.

In June, Jasper County offered a compromise with the State Ports Authority based on the landlord-tenant model in the hopes of forgoing the pending high court lawsuit. Scheduled to begin Sept. 20, the case seeks to decide who has the "sole or superior right" to develop a port on the north bank of the Savannah River.

Under the proposed compromise, Jasper would develop the port with SSA Marine and operate it for 32 years before turning the facility over to the Ports Authority.

The Ports Authority placed an Aug. 1 deadline for groups to file a so-called Request for Interest in developing the port site and received 11 proposals. Tuesday's motion came as a response to those proposals.

The board did not clarify what level of private participation it is seeking, but asked Ports Authority CEO Bernard Groseclose to return next month with a list of options.

Campbell, board Chairman Harry Butler, Vice Chairman William Stern, Whitemarsh Smith and James Bennett voted for the motion, while Tom Davis, Glenn Kilgore and John Hassell voted against it. The landlord-tenant model is the basis for Jasper County's own agreement with private port developer SSA Marine and has been utilized in several private terminal projects under development on the East Coast.

"That compromised have to be changed," Butler said of the Jasper plan after the meeting. "We need to go back to all of those (Requests for Interest) with a structured format that's in the best interest of the people of South Carolina."

The move came as a surprise to Jasper County officials and at least one Ports Authority board member. The motion or any discussion of the Jasper or Charleston projects was not on Tuesday's meeting agenda, which was released Friday.

Davis, the newest board member, a Beaufort native and former chief of staff to Gov. Mark Sanford, was outraged and argued against the action in open session.

"I expressed the reasons why I opposed the motion at the board meeting and I don't think it's appropriate to comment further," Davis said after the meeting.

Jasper officials were shocked.

"First of all it comes as a complete surprise, which is no surprise when dealing with the Ports Authority," said County Administrator Andrew Fulghum. "It's a total change from their last position, which was sent to us on July the 5th."

The State Ports Authority responded to the county's compromise with a letter stating that all options would be thoroughly considered.

"Just to have something like this appear, when it wasn't on the agenda, when it's becoming a national issue, where we're fielding more calls from congressmen than state officials, I think this action shows that they're stumbling," Fulghum said. "They must be feeling the heat of the pending court case."

Butler said he is not concerned with the Supreme Court case.

"Our attorneys tell us the law is clearly on our side," he said. "I have no reason not to believe them."

Copyright 2005 The Beaufort Gazette • May not be republished in any form without the express written permission of the publisher.