By Eric Curl
March 18, 2026 – The city of Savannah is moving forward with a $9 million stabilization project for the historic waterworks building next to Enmarket Arena. Now they just have to figure out how to use it.
On March 12, the Savannah City Council approved a contract establishing a $9 million guaranteed maximum price with Garbutt Construction Company for construction services tied to the stabilization effort.
Located at Gwinnett Street and Stiles Avenue, just west of downtown, the waterworks building was constructed between 1891–1893 as a steam-powered pumping station that helped provide clean water to Savannah.
The facility became obsolete by the 1940s and was later used for storage before falling into disrepair. Today, the structure requires extensive work due to deterioration from age and exposure.
During the March 12 workshop, prior to the contract’s approval, city leaders emphasized that while stabilization is a major milestone, it is only the first phase of a larger effort.
City Manager Jay Melder said determining the building’s future use will ultimately be a policy decision for the council.
“Making sure that we have a clear plan for how we’re going to build out that interior space and what the programming is going to be inside of that building is very, very key and will be a decision for city council,” Melder said.
Council members repeatedly stressed that the project must remain centered on nearby residents and local entrepreneurs.
Alderwoman Bernetta Lanier said the city intends to stay focused on that mission as plans evolve.
“We’re not going to allow it to get off track and end up being something else for someone else. It’s going to have to benefit the primary stakeholders,” she said, adding that the goal is a “win-win” for the broader Savannah community, including visitors.
Alderwoman Alicia Blakely echoed that concern, emphasizing that those living closest to the project should see the benefits first.
“I hope and pray that it will benefit the residents, the people that’s mostly impacted by what’s going on,” she said, adding that “those people that live there first will get consideration.”
Lanier also pointed to specific tools the city could use to ensure access, including “some subsidized spaces” and designated market areas that would be defined contractually. She added the project could fill a longstanding gap for creatives, noting “there are no artisan spaces available except for special events, and this will solve that.”
Alderman Nick Palumbo said the project could address a missing piece in Savannah’s small business ecosystem, particularly for entrepreneurs selling finished goods.
“The demand really, it’s a marketplace,” Palumbo said, adding that many founders are currently forced to operate out of their homes or take on costly retail leases.
The waterworks building could provide a middle step, he said, allowing businesses to grow without taking on the risk of a full commercial space.
“So, this fills a very special gap where they’re going to be able to grow and scale,” Palumbo said, adding that demand is likely to be strong: “the city’s going to be hit over the head with demand, and that’s an exciting place to be.”
Staff said they will work closely with council in the coming months to define that vision before the next phase of construction. A consultant study on how the building will operate and be programmed is expected to be presented to council in July. The stabilization work is expected to be completed in the summer of 2027, with the start of buildout construction anticipated to begin that fall.
The waterworks project is one of several major initiatives funded through Savannah’s Tourism Product Development (TPD) program, which also includes River Street improvements, trail connections, and museum development. The program is a dedicated funding stream created in 2023 when the Georgia General Assembly approved an increase in the city’s hotel-motel tax from 6% to 8%. The change did not increase the city’s general fund revenue, but it redirected a portion of those tourism dollars into a new capital fund for projects tied to tourism.
Under state law, TPD funds must support infrastructure or assets connected to tourism, and city council adopted a resolution identifying its first priorities, including River Street and the waterworks project, which was paired with westside connectivity improvements and initially estimated at about $37 million in total.
Plans also call for improved pedestrian and trail connections linking the site to surrounding neighborhoods, the Canal District, and Enmarket Arena, with the goal of increasing access and economic opportunity.
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