No ground broken yet on land where Costco might go, but developer hopeful
The developer of the long-awaited Okatie Crossing shopping center, where a Costco has been proposed, has not yet broken ground on the 300-acre site at the intersection of U.S. 278 and S.C. 170, but says that recent agreements with the City of Hardeeville and Jasper County will help move the project forward.
Doug Horne, president of Horne Properties in Knoxville, Tenn., has been trying to build the shopping center for more than 10 years. Last fall, he said he expected to begin building in late 2016 or early 2017.
Now he said he hopes it will be sometime in 2017.
The shopping center is of particular interest to residents of Beaufort County, who in a 2015 survey by The Island Packet and The Beaufort Gazette listed Costco as the No. 1 national retailer that they wish would open in the Lowcountry. Costco, along with Kohl’s, Lowes and Marshalls, appeared on the developer’s site plan seven months ago.
An Ethan Allen, Zaxby’s, Advanced Auto and Cracker Barrel have already been built.
Horne said the latest delay for the project is because of ongoing negotiations with big-box retailers and because funding is needed to build a road on the property that would connect the two highways.
Without tenant commitments, Horne said he cannot raise enough money to build the road, but retailers are wary of making a commitment without a road in place.
“It’s kind of a Catch-22 situation,” he said.
In order to build the road, Horne sought a payment incentive plan with Jasper County and the City of Hardeeville.
Hardeeville City Council members approved a Memorandum of Understanding with Horne Properties and Jasper County at a city council meeting on July 7.
Michael Czymbor, city manager for Hardeeville, said the memorandum is a nonbinding agreement that says Horne Properties would develop 800,000-feet of commercial space and pay a fee to Jasper County and the City of Hardeeville instead of property taxes for 20 years. Horne Properties would receive reimbursements from the county for infrastructure costs associated with the development.
Jasper County Council members had previously approved the memorandum April 18.
Horne has yet to sign the agreement but said he plans to do so when he has more anchor tenants confirmed. He considers the agreement to be a significant move forward and said it will ultimately help him get the funding he needs for the connector road, which the city will own.
“All we need is to work out the final commitment with the anchor tenants that are going in,” he said.
He would not confirm any possible future tenants, but Costco still appears on the site plan that was submitted to the City of Hardeeville and on Horne Properties’ website.
Czymbor, who became city manager in August 2015, said future progress for Okatie Crossing primarily depends on Horne tying down tenants and that a lot is out of the city’s control.
“I think it all hinges on that signing of that main anchor,” he said. “Because what I’m understanding from Mr. Horne, and other larger commercial entities, (is that they) co-locate with these other major anchors.”
Horne has not given the city a time frame, and the latest site plan was submitted to council this past fall, according to Czymbor.
“I know there’s ongoing relations,” he said. “We don’t have anything to react to, if he doesn’t have those signed leases that he needs.”
The next step in the process would be for Horne Properties to sign the agreement and to submit more detailed plans for the city to review, Czymbor said.
“I know it seems like a long time,” he said. “As soon as we get a commitment from him, we’ll expedite the process and have the appropriate amount of public hearings.”
This story was originally published July 15, 2016 at 5:17 PM with the headline "No ground broken yet on land where Costco might go, but developer hopeful."