By Eric Curl
May 22, 2023 – The Savannah College of Art and Design’s tax-exempt inventory continues to grow, while a handful of the university’s properties remain on the tax rolls.
SCAD, a registered nonprofit, will save about an additional $86,000 a year in taxes, after recently obtaining tax exempt status on two more properties.
The two properties approved for the exemption last month by the Chatham County Board of Assessors are the former Chatham Apartments building at 609 Abercorn St. and a recently constructed parking garage at 645 Indian St.
SCAD purchased the former Chatham Apartments in 2020 for $39 million, about $13 million more than a real estate investment firm had spent a year earlier, when the property was a low-income housing complex. SCAD paid about $60,000 in taxes for the property in 2021 and 2022, according to Chatham County tax records. The university has since converted the 14-story building for use as student housing.
The university acquired 645 Indian St. in 2018 and recently completed construction of a parking garage for students and staff at the site. The university paid about $26,000 in property taxes for the site in 2022.
The tax exemptions were approved shortly before SCAD’s $5 million purchase this month of the former Ghost Coast Distillery building at 641 Indian St. Ghost Coast opened in 2017 with the assistance of the Savannah Economic Development Authority, which provided a 5-year property tax abatement that ended in 2021. During that interval, the tax revenue increased from $9,654 in 2016 to $58,029, according to SEDA. Once SCAD renovates the building and puts it to use, the property will likely return to a tax exempt status.
The purchase came about three years after nonprofit university’s net assets topped $1 billion in 2020, when a $152 million profit was generated for the second year in a row. While the university owns about 80 tax exempt buildings, a 2019 economic study found that the university contributes more than $577 million in economic impact to the city annually.
Meanwhile, the university does pay property taxes for some properties that do not qualify or have not yet been approved for an exemption. This includes paying about $17,000 in property taxes for 224 West Boundary St., which has remained vacant since SCAD demolished the former Howard Johnson’s motor lodge at the site in late 2019. SCAD also paid $49,000 in property taxes in 2022 for 641 Indian St., where the university is building a 17-story student housing complex. In addition, the university paid $2,477 in taxes for a diner at 1220 Barnard St., where a barbecue restaurant previously operated, and $2,198 for the diner building at 1402 Habersham St., where the Fork & Dagger restaurant is located.
SCAD did not respond to a request for comment on May 15 regarding the university’s growing tax exempt inventory and plans for the former Howard Johnson’s site.
#StayEngagedSavannah
If you find value in this website, please consider contributing via Paypal to help cover the costs. You can also send contributions via Venmo @Eric-Curl and via CashApp at $ECrl77. Your support, no matter how much you give, is appreciated and will help ensure the future viability of this community resource. You can also show your support by sharing Savannah Agenda with others via email or social media by clicking the icons below. Increasing readership is critical to the long-term success of this site.