North Charleston will hold a special City Council meeting Tuesday to revise the city’s deal to sell the former Naval Hospital and the Shipwatch Square shopping center property.
Multiple sources on both sides of the deal have said the sale of the hospital property is expected to close on Friday. That would require City Council to first amend the city’s contract with Chicora Gardens Holdings LLC, which agreed one year ago to buy both properties together in a $9.2 million deal that included incentives to lure a grocery store to the area.
The revised deal also would include up to $1 million in incentives to lure a full-service grocery store to the redevelopment area, with the money coming from the purchase price.
Mayor Keith Summey and other sources have identified the developers behind Chicora Gardens Holdings as Donald Trump Jr. of New York and Douglas Durbano of Utah.
An attorney for Donald Trump Sr. and his organization said Monday that the younger Trump is a passive investor in the project, and the Trump organization is not involved.
“Mr. Trump (Sr.) loves South Carolina and encourages his children to seek opportunities there,” said Michael Cohen, the elder Trump’s special counsel. “In this specific case, Don Jr. is a passive minority interest holder and not either the GP (general partner) or the developer.”
Durbano has said he would not comment until the sale closes.
Under the revised sale agreement, Chicora Gardens Holdings would pay the city $3 million at closing and $2 million more by Sept. 30 for the hospital property. The hospital, the tallest building in North Charleston, was purchased by the city in 2012 from the federal government for $2 million.
The city has spent roughly $700,000 maintaining the building, and the revised sale agreement also makes the city or its insurer responsible for up to $150,000 in damage suffered by the building when parts of the building were flooded in December, apparently by a problem with water pipes.
No specific plan the future use of the hospital building has been announced.
The buyers would have until Sept. 30 to decide whether to complete the purchase of the Shipwatch Square property for an additional $4.2 million. Questions involving federal regulations, community center plans, property swaps with Charleston County and other issues have delayed that part of the deal, according to the city.
The City Council meeting begins at 5 p.m. in City Hall, 2500 City Hall Lane.
Reach David Slade at 937-5552.
Notice about comments: