Developers have bought a second 30-day extension for purchasing the Port of Port Royal from the S.C. State Ports Authority.
The $17 million deal originally was to close May 7, under the terms of an agreement between the authority and the Port Royal Development Group. However, the agreement allowed the group to buy 30-day extensions for $75,000 each. The money is nonrefundable if the sale does not occur but will be applied toward the purchase price if it does.
The group intends to build a 52-acre commercial and residential development along the waterfront in Port Royal, according to plans and designs approved by Town Council. A news release from the group said it is using its final extension, and the sale is expected to close the first week in July.
"The company has enjoyed working with the council members, town staff, as well as receiving feedback from Port Royal's residents over the last year," the release said. "We look forward to closing and will work diligently to implement the redevelopment plan with the town of Port Royal."
In May, when the first extension was purchased, development group representative Jeff Pinckney said he had no concerns about the purchase, and the delay was mainly to complete paperwork.
This is the third attempt by a developer since 2006 to buy the property and the only proposal to get this far in the purchase process.
The Ports Authority operated a small port on the land from 1958 through 2004, until the state decided the operation was too expensive to continue. Concerns about financing and the amount of park space included in development plans killed previous deals.
The town will borrow $4.5 million to improve public infrastructure, such as roads, sewers and parks, related to the port development. The money would be repaid using tax revenue that results from rising property values within the new development.
- Developers buy extension on closing Port of Port Royal deal, May 7, 2012
- Developer confident purchase of Port of Port Royal will succeed, March 14, 2012
- Purchase of Port of Port Royal pushed back two months, March 7, 2012