By Eric Curl
April 26, 2024 – The Savannah City Council approved a development agreement on Thursday that is ultimately expected to lead to almost 400 affordable homes and apartments at the 65-acre former fairgrounds site the city acquired in 2016.
The agreement with P3JVG LLC includes 30-year covenants requiring that:
- 37.5 percent of lease units shall be rented to tenants earning 40% or less of the Area Median Income (AMI)
- 25% of lease units shall be rented to tenants earning 60% or less of the AMI
- 37.5% of the leased units shall be rented to tenants earning 80% or less of the AMI
- home sales monthly costs cannot exceed 30% of the buyer’s income or 80% of AMI
As amended on Thursday, the first phase of the five-phase development at 4801 Meding St. now includes 30 single-family homes and 20 attached townhome units. The phase is to be developed and completed within 12 months after the developer acquires that portion the site, which is expected to occur by June 30.
The fairgrounds development includes a mixture of 380 single-family homes and apartments, as outlined in Thursday’s workshop presentation (click image to see full presentation.).
<View fairgrounds presentations from April 25 workshop>
The second phase includes 70 affordable apartments for seniors, which are expected to be funded with the assistance of state Low-Income Housing Tax Credits. To support the tax credit application, the city council also approved the authorization of an almost $2 million loan from the Community Housing Services Agency, which is expected to boost the chances of the application being successful.
For similar reasons, a $1.23 million loan from CHSA was also approved to support a private developer’s plan to construct 41 affordable housing apartments on former city property at Drayton and 34th streets.
The tax credits are a key component for financing of the senior housing, and without them the affordable housing element will not be feasible, according to city officials.
This will be the fourth attempt by the city to obtain the tax credits for the Drayton Street project, and second attempt to obtain the credits for the fairgrounds development, after previous applications were denied, as previously reported.
The development agreements comes after P3JVG LLC was chosen among three contenders in October 2021 after submitting a development plan for the fairgrounds site. In addition to housing, the planned development includes film studios, a creative workforce innovation center, neighborhood commercial uses, an indoor sports facility, outdoor sports fields and courts, playgrounds and a nature preserve.
The city will be paid $2 million over a period of 43 months as the property is developed.
The city will make about $6 million in infrastructure improvements, which includes widening Meding Street. A portion of that cost will be covered by a $2.5 million state grant.
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