N. Charleston may consider buying Noisette back
By Robert Behre
The Post and Courier
North Charleston Mayor Keith Summey
North Charleston sold the northern end of the former Charleston Naval Base to the Noisette Co. six years ago, and Mayor Keith Summey said Friday that he wouldn't rule out buying it back.
His comments came just a few days after Capmark Finance Inc. and other lenders filed a $23.8 million foreclosure lawsuit on 240 acres of Noisette's 340-acre holdings.
Since then, Summey and some council members have talked informally about the city's next move.
While nothing has advanced past the discussion stage, Summey said one idea is for the city to buy back the land. Before any such proposal winds up on a City Council agenda, two things would have to happen, he said.
First, Noisette would have to lose the property to foreclosure, without having another private developer step up to revive Noisette's plan of a mixed residential, commercial and office development there.
Second, the city would have to negotiate the price to a point within its comfort zone. North Charleston sold the 340 acres for $9.6 million in 2003.
"If it helps us long term move forward with what we need to do there, I'm not adverse to" buying back the property, Summey said. "But I'm not willing to go out and pay $20 million for something that we sold for a lot less."
Summey said the property's value has increased and that he wouldn't necessarily be against paying a higher price than the city sold it for, but he added, "It would have to truly make a lot of sense."
"Our ultimate goal, if Noisette is not able to pull this out, would be to find another development group we can work with," he said. "If this were a different market right now, I think you'd have people jumping at the opportunity, but I think the way the market is now and the inability to secure the financing you need, it's a little difficult."
Summey said he is more concerned about the state's efforts to try to turn the northern end into a rail yard than he is about Noisette's pending foreclosure, and other council members appear to agree.
"My big concern is the state trying to gobble up that property if it's in foreclosure and trying to jam rail yards down our throat just like the port was jammed down the city's throat," Councilman Ed Astle said. "We want it to go forward, whether it's (Noisette Chief Executive Officer) John Knott or somebody else doing it."
Astle said buying the property back is a possibility but not necessarily a favorite one. "Then what would we do with it? Find somebody like John Knott and sell it to him again? It becomes like a vicious cycle."
Councilwoman Dorothy Williams said she is disappointed in Noisette and thinks the city should do something.
"The city of North Charleston needs to negotiate with whomever was working with Noisette to see if we could get our property back," she said.
If the city were to regain the property, Williams said it should take the time needed to find another developer able to move ahead with the plan. "You shouldn't allow yourself to get burned more than once," she said.
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Comments
whalernut (anonymous) says...
Stimulus Money at the fingertips?
Come on that land is open to the public to buy. Goes to the highest bidder. That land could hold the Ness Motley North Law firm or something.
June 14, 2009 at 5:56 a.m. ( permalink | suggest removal )
TheTruthFighter (anonymous) says...
Ha-Ha-Ha - Anybody with a brain should have known this project was going to fail from the beginning. There was absolutely NO DUE Diligence on this firm before the city enter into the ridiculous agreement. This has to be one of the dumbest decision that the Mayor and the City Council has every approved and some should lose their job. Just go back and read the P & C stories on this transaction, it was dirty from the very beginning. Just like in Corporate America today, remove the CEO of the City! If Hilary Douglas would have played his cards right, this one transaction would have made him Mayor of N. Charleston.
June 14, 2009 at 6:55 a.m. ( permalink | suggest removal )
CNSYD (anonymous) says...
Let's see. The Federal government gave it to the state and the city of North Charleston. They then sold it to Noisette. Now they are going to use Federal money to buy back what the Feds gave them to start with? And then what?
June 14, 2009 at 7:10 a.m. ( permalink | suggest removal )
TheTruthFighter (anonymous) says...
I have seen many people knock the Post & Courier on many issues, but when it comes to the Noisette project, they deserve a journalist award. This story was masterfully reported! I'm still is disbelief on the deception, lie's, etc surrounding this story! Kudo's to the P & C on this one!
June 14, 2009 at 7:51 a.m. ( permalink | suggest removal )
theronce (anonymous) says...
TheTruthFighter, yes, dirty from the get-go. They got away with it, and I guess they have a good shot of doing it again. I mean, we're just as dumb as before, and they are just as smart. It's hard to give up a cash cow like this, I guess. On the other hand, this is how thieves get caught. They keep going back to the well.
June 14, 2009 at 8:11 a.m. ( permalink | suggest removal )
realnews (anonymous) says...
Have any of you grouches actually been to Riverfront Park? It is extraordinary. It is exactly the type of project that North Charleston needs to raise its profile and stop being the ugly sister to Charleston. My only disappointment with the project has been that they wanted to keep the officers housing in Public Hands, that project could have taken off if they turned the housing over to private buyers - with stipulations that the area was public land and they couldn't wall it off. Believe me, those homes are gorgeous and with the right well heeled buyers to do the rehab, the base would change on a dime. Do I think Summey needs to spend 20 million to buy it back? Heck no. But do I want to see the vision of Noisette move forward? Yes, definitely yes.
June 14, 2009 at 8:12 a.m. ( permalink | suggest removal )
rollnwflo (anonymous) says...
I would say that this is a fine example for why the government should not be in the land development business. Can hugh profits be obtained, sure but the risk is great and many a smart man (Ginn, Knott) have found themselves invested in the wrong place at the wrong time.
June 14, 2009 at 8:45 a.m. ( permalink | suggest removal )
moonpie (anonymous) says...
The "vision" was a good one. But trouble started from day one.
River front park, extraordinary? We obvioulsy have different taste. Only people I see flocking to see it are illegals and recreational crabbers. Build a dock anywhere and they will come!
The homes were built before 1950 and are filled with asbestos and lead paint, your right it's gonna take deep, deep pockets.
I agree all housing projects should have went to private buyers. But they have missed the mark now.
June 14, 2009 at 8:48 a.m. ( permalink | suggest removal )
TheTruthFighter (anonymous) says...
Here is what the P & C reported:
There was a snag: Law requires cities to let any company bid on most large projects, and North Charleston's plans were only with the Noisette Co., Summey said.
Two years ago, city and company lawyers found a legal way to work the project, one that involves the sale and resale of base property, as well as bonds and special tax districts.
Since then, the city has quietly analyzed what land it must buy - or condemn - for the two proposed nature preserves, park and private developments the project will include.
Just these three paragraphs are HUGE! It's LAW for all company's to BID on BIG projects and I believe FEDERAL LAW! And the City and Noisette attorney found a Legal way. Humm, somebody please explain to me, the legal way. And then the city quietly analyzed land it could buy or condemn. The last time the people of N. Charleston was dubbed quietly is when land was condemned and was told it was unlivable. But some years later, an Aquarium was built on the same land. When are the folks of N. Charleston decide they will not tolerate the lies, deceptions from city officials? Every general contractor should be up in arms that they excluded from this process. Where was Dot Scott on this issue? Where was the NAACP on this issue? Where was the citizens of NC that was being taken advantage once again? That is my question. I can care less what the property may look like at this present moment. The law is the law, fair is fair, and dirty is dirty!
June 14, 2009 at 8:59 a.m. ( permalink | suggest removal )
Tides (anonymous) says...
Something is just not right with this story. Is it all legal?
Challeneg it in court to make that determination. Just because N. Charleston's lawyers say it's legal does NOT mean it is LEGAL. Lawyers are not a court of law. Matter of fact, many lawyers do end up on the wrong side of the law.
June 14, 2009 at 12:35 p.m. ( permalink | suggest removal )
Tides (anonymous) says...
TheTrueFirefighter ...... There have been times the Post and Courier has been threatened by ********* with legal action if they ... .. .
June 14, 2009 at 12:38 p.m. ( permalink | suggest removal )
zoomru (anonymous) says...
What a FLUFF piece for fake press..........
This was discussed .....WHEN ..???
Citizens ......WAKE UP .!!!!
Was this discussed at BOB KNIGHT's Barn...???
Was this discussed at the GOLF schmoozer by the CLYBURN Clan at Kiawah ...???
Why were certain rezonings by what developerz more than 5 years ago not no discussed....WHEN..!?!?
Come on.....ROBERT !! Feel the Breeze...!!
June 14, 2009 at 3:20 p.m. ( permalink | suggest removal )
CNSYD (anonymous) says...
Mayor, it is my understanding that the Feds gave the base to the state. Then a redevelopment commission was set up which doled out the land.
June 14, 2009 at 4:38 p.m. ( permalink | suggest removal )
BlueWaterDay (anonymous) says...
Does anyone know what Noisette's product is? I mean besides dreams of grandeur, and it seems that noone is buying dreams of grandeur these days...
June 15, 2009 at 8:15 a.m. ( permalink | suggest removal )
TheTruthFighter (anonymous) says...
If Hillary Douglas would have had me as his C-Manager, he would have won; because I would have hammered this issue hard!
June 15, 2009 at 11:28 a.m. ( permalink | suggest removal )
Elvisfan68 (anonymous) says...
We can take this money to buy land, but, we can't give our BRAVE FIREFIGHTERS and COURAGEOUS POLICE MEN & WOMEN the pay raises they RIGHTFULLY DESERVE............TIME FOR A NEW MAYOR AND CITY COUNCIL!!!!!!!!!!!!!
June 15, 2009 at 9:36 p.m. ( permalink | suggest removal )
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