The city of Savannah has determined it needs to re-bid a multimillion dollar project that would raise President Street to alleviate flooding and provide entrances for the Savannah River Landing site.
Staff is also recommending condemnation to acquire about half an acre along General McIntosh Boulevard from the owners of the Savannah Marriot Riverside for the project.
John Sawyer, Savannah public works and water resources bureau chief, said the condemnation is not a “hostile” taking and both the city and the property owner, Columbia Properties Savannah LLC, agreed the method would be the best way to transfer the land.
City spokesman Bret Bell said the acquisition amounts to a land swap and the company would be given an equal amount of city-owned land next to the hotel’s parking garage.
The “friendly” transfer is not a case of the “evil government” coming and taking property, Bell said.
Representatives from the Kentucky-based corporation declined to comment.
Sawyer said he did not want to go into details about why the road improvement project has to be re-bid, but some issues could not be resolved. The city typically makes sure the contractor is comfortable with the bid before awarding contracts to keep problems from cropping up after the project begins, he said.
Sawyer said it could take two months to re-advertise and select a contractor.
Staff had expected to present the contract for approval at the June 27 City Council meeting after receiving bids from two contractors. McLendon Enterprises’ low bid of almost $30 million came in about $8 million less than the bid submitted by TIC — The Industrial Company. Both bids exceeded the city’s original cost estimates and budget for the project.
None of the companies returned calls Tuesday seeking comment.
To make up for a shortage in funding, staff recommended the city issue about $20 million in bonds. The borrowed money would also be used to complete three drainage projects and provide $10 million owed to the Savannah-Chatham public school board.
Issuing the bonds will be put on hold until the city receives the new bids, said acting Assistant City Manager Dick Evans.
“If they are more favorable, we won’t have to borrow as much,” Evans said. “If they are less favorable, we’ll have to re-evaluate.”
With the road improvements, the city hopes to help spur development of the Savannah River Landing site east of the Marriot along President Street. Before the recent economic downturn, a $575 million market value was predicted for the 40-acre site, which was to be an extension of the downtown Historic District featuring residential and commercial development.