City to offer $11.5M for Rivers Federal Building
By David Slade
Charleston is offering the federal government $11.5 million for the long-vacant Mendel Rivers Federal Building, in order to gain full control of any redevelopment of the site across from Marion Square.
If the offer is accepted, the city would finance the purchase with a bond issue and money from other land deals, and hopes to recoup the money by later selling the property, to be developed in a manner determined the city.
The seven-story, asbestos-contaminated Rivers building has been vacant since 1999.
It was scheduled to be sold by the federal government in an online auction this summer, but local governments have the right to buy federal property for public purposes, before it goes to auction.
Charleston previously had agreed to acquire the Rivers building in a swap with the federal government involving city-owned property on Broad Street near the federal courthouse. After that agreement expired and the federal General Services Administration decided to sell, Mayor Joe Riley decided the city should buy it outright.
Residents of the Mazyck-Wraggborough Garden District Neighborhood Association have expressed concern about the potential for high-density development on the streets behind the building.
"If we obtain the building, we'll give the community an opportunity for input," said Councilman Robert Mitchell, who represents that area. "I think the best thing to do is to obtain the building now and go from there."
"We've been looking at the property for a long time, because of the eyesore that's sitting there," he said.
Several council members said the GSA had sought $15 million for the property, but the city counter-offered with a lower number based upon a city appraisal. Mitchell said it could cost another $2 million to remove asbestos and tear the building down. Any profit made if the city resells the property for development would go back to the federal government, under the proposal.
Council voted unanimously to make the offer, with Councilwoman Debra Morinelli absent.
"The federal building provided a unique opportunity to determine the future of that property," Councilman Wendell Gilliard said. "This also provides another opportunity to involve minority participation when it comes to demolishing that building and developing the property."
Reach David Slade at 937-5552 or dslade@postandcourier.com.
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majorjohnson (anonymous) says...
There's a reason that prime piece of property has been on the market for 8 great real estate years. The old citadel was sold for $3.1 million and had a historic building on it to build from only 4 years before this building went on the market. Right across the street we have essentially a 15 million dollar asbestos laden liability that has to be turned into an empty lot that is going to have severe building restrictions placed on it. This is an incredibly bad deal, and if Joe wasn't using someone elses money it wouldn't happen. I expect that it will eventually become a 15 million dollar extension of the marion square park. Great value for your money folks.
July 31, 2007 at 7:47 a.m. ( permalink | suggest removal )
lyfe1999 (anonymous) says...
Joe is at it again. Wonder which of his deal estate developer buddies will get to develop this one. Beach COmpany, Wally Seinheimer, or David Agnew? This deal should be developed by the private sector period. If the city wants to control the development then do it through zoning. A better use of or tax dollars is fixing the drainage problems Downtown and West Ashley. The infrastructure of this city needs attention. If we don't pay for it now we will pay dearly for it later. And come on Wendell, what makes you think after thirty two years the Mayor is going to start using minority contractors? Zoning is the way to go. Joe acts like this is his money and the city of Charleston is his real estate development company. The people need a change.
July 31, 2007 at 9:21 a.m. ( permalink | suggest removal )
majorjohnson (anonymous) says...
The private sector isn't touching this one with a 10 mile pole. There is no way a private entity is going to sink that kind of money into a lot that's gonna end up zoned for a small hotel or a handful of single houses. Dollars to doughnuts that 2 million dollar figure is short of the actual cost to tear down a building that's got asbestos out the ying yang. If the federal government would give it away maybe, but no one is putting 11 million dollars down for that property with its liabilities and the the lack of potential for return due to zoning restrictions.
July 31, 2007 at 12:40 p.m. ( permalink | suggest removal )
vicupstate (anonymous) says...
This site is no different than the COncord Park one. Concord Park has a boatload of restrictions, and it still sold for a good price. This parcel will do the same. When completed it will no doubt be another jewel in the crown of Charleston.
The area around Marion Square has increased in value tremendously since the Old Citadel was done. The Old Citadel was a pioneer project at it's time. That won't be the case here.
If the Fed's didn't get top dollar, there would be cries of 'wasting taxpayer dollars' on the Feds, instead of on the city.
If the swap had taken place, the parcel would still have ended up in the cities' hands. So at the end of the day, what is the difference?
This will be a high-density mixed use project, not 'a small hotel and a few houses'. The parcel has not been on the open market either, as the city's swap deal just expired.
I say bring it on !
July 31, 2007 at 1:03 p.m. ( permalink | suggest removal )
burton (anonymous) says...
King Riley is at it again and his subjects on City Council fall right in line with him. This is a BAD deal! I agree with lyfe1999. If King Riley hasn't been using minority contractors in 32 years, guess what? Why not take that money and fix the flooding that goes on downtown, put it in the Rec Dept, build TRUE affordable housing for folks, or raise the pay of city workers. I just can't believe how the voters of Charleston keep electing this guy and his flunkies on City Council. Kwadjo may have had his personal demons, but at least he stood up to King Riley!! I know King Riley is glad Kwadjo is gone, now he can continue to do whatever he wants and who on City Council is going to question his decrees?
July 31, 2007 at 1:07 p.m. ( permalink | suggest removal )
captivated (anonymous) says...
This story should have read "Joe Riley is offering the federal government". Is this guy the mayor or the KING of Charleston?!? The only way Joe can prove his sincerity to me is to repave King street all the way to Morrison Drive. I believe my grandchildren will be on Social Security before that happens.
July 31, 2007 at 1:14 p.m. ( permalink | suggest removal )
icbmman (anonymous) says...
Lyfe and Major, if this property was let go by the federal government to a private bidder, what do you think would be developed on the site? If a company was seriously interested in building something like a HQ building, the Hysterical Foundation and extremist preservationists would oppose it. It seems that most of these people, city leadership included, prefer to build the same boring, uninspiring buildings, which is what we'll see at Mendel Rivers. It's all about constant control, and that is what we see here in this case.
July 31, 2007 at 4:14 p.m. ( permalink | suggest removal )
Reader (anonymous) says...
Here is my best informed guess as to the sequence of events:
1. Joe is going to buy this property for the City.
2. Joe is going to hold a series of workshops for public input.
3. Joe is going to disregard whatever input comes out of those workshops.
4. Joe is going to tell his appointees to the Board of Architectural Review to permit demolition of this building.
5. Joe is going to rezone the property to permit an exceptionally tall hotel to continue enclosing Marion Square.
6. Joe is going to sell all or part of the property to Bennett & Hofford to develop yet another insipid hotel in the style of what is planned for 404 King St.
7. Joe will overbuild the rear (eastern) portion of the lot with what he will call "beautiful affordable" housing.
8. The housing will be neither beautiful (it will be even more insipid, fake stucco blandness like the hotel at 404 King St.) nor affordable (it will cater to 30-something white professionals).
9. Although the new development will be totally out of character for Charleston, Joe will derive a huge income stream from the hotel taxes (which will keep him from having to increase property taxes).
10. Joe will again be reelected in his next reelection bid by being able to claim that he has not raised property taxes.
July 31, 2007 at 4:46 p.m. ( permalink | suggest removal )
trm2105 (anonymous) says...
Man, wouldn't be a shame if little king riley just steps down after his last reign, um term, whenever that might be rather than be voted out. I would so much like to see the man voted out.
July 31, 2007 at 6:24 p.m. ( permalink | suggest removal )
burton (anonymous) says...
Reader, I'm laughing my you know what off. Wow, that is great analysis of what is going to happen. LOL. I especially like #3! LOL
July 31, 2007 at 8:13 p.m. ( permalink | suggest removal )
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