Editorial: On port, finally, a new chance to make sale work

The S.C. Ports Authority has failed miserably for nearly a decade to sell the former Port of Port Royal.

Now, thanks to legislation sponsored by state Sen. Tom Davis of Beaufort County and enacted in 2014, the Ports Authority's reign over the former port's sale is finally over.

That should be good news for those who hope to see the distressed property become a source of pride and economic development for the town of Port Royal.

At the same time, it's understandable if they've curbed their enthusiasm after witnessing so many disappointments at the hands of the Ports Authority.

The authority has received five offers over the years to buy the blighted, 317-acre industrial site.

On Dec. 11, the fifth offer of $15.4 million fell through after the Palmetto Alliance decided it couldn't make the deal work. It said the price for the residential section was too high and the Ports Authority had denied a request to have it reappraised.

The alliance was also concerned about a pending insurance settlement covering the Port Royal seafood market that burned down earlier this year. And there's the issue of an abandoned railroad right of way that residents are suing over, saying the town and Ports Authority illegally took it.

Now it's the S.C. General Services Division's turn to sell the property. It must get a new appraisal and auction the property. It can accept no less than 80 percent of the appraised value.

Davis believes General Services will succeed where the Ports Authority failed, by finally getting a realistic appraisal.

Those interested in the property have complained for years that the price was too high.

The new law requires the agency to seek an appraisal from an expert in closed industrial sites. The Ports Authority was supposed to do that, but somehow wound up with another bloated price.

The site needs a lot of demolition work and could require cleanup of environmental hazards. Those are risks developers would be willing to take on, if the price is right. The reward would be developing prime waterfront property in a growing area.

Any developer would also need to adhere to the town's development agreement. Following that plan will help make the property a successful, seamless addition to Port Royal that could be filled with shops, housing, a marina and a public waterfront park.

But before General Services puts the property on the auction block, it needs to make sure it has a realistic appraisal. The last minimum bid price offered by the Ports Authority was $14.8 million for the entire site.

So the new minimum should be considerably lower.

The property could be sold in pieces, however it would be better if it were sold as a whole to ensure compatible development throughout the property and for more efficient dealings with the town on adhering to the development agreement.

General Services and the Ports Authority should also clear up any lingering insurance and railroad right-of-way issues, or at least make sure there is full disclosure to bidders upfront.

That way, maybe the sixth time will be the charm, and the port will be sold once and for all.

This story was originally published December 16, 2015 at 10:18 PM with the headline "Editorial: On port, finally, a new chance to make sale work."