Noisette deal to go before councilNorth Charleston to consider $60M in bonds for old naval base By James Scott (Contact)
The Post and Courier
Saturday, November 24, 2007
North Charleston to consider $60M in bonds for old naval base At a glanceThe issue: North Charleston is considering financing up to $60 million in bonds to help the Noisette Co. move forward. The problem: It's a complex deal with some risk that also means the city is re-establishing a partnership with Noisette. What's next: City Council's Finance Committee is to vote on a resolution to support the plan at 5:30 p.m. Tuesday. The dealNorth Charleston has created a special tax district for the former Charleston Naval Base aimed at capturing future increased property tax revenues as base properties develop. The Noisette Co. is asking North Charleston to agree to float up to $60 million in bonds, based on those future revenues, to repay Noisette's private lenders for infrastructure work it hopes to accomplish in the next few years. Those bonds will be issued before the tax district has generated that much money. The city plans to use some of those revenues to pay the debt on the bonds. To cover any shortfall, Noisette has agreed to pay a special tax. In the event of a default, the property would be sold at a tax sale and the bond holders repaid. Two months after North Charleston delayed the proposal amid speculation it wouldn't pass, City Council will consider a measure Tuesday to help the company redeveloping the former Charleston Naval Base. The Noisette Co. is asking the city to finance up to $60 million in bonds to help engineer new drainage lines, roads and a lake. Under the deal, the bonds would be repaid by future property taxes collected on the base. The company, which can't borrow money from private lenders without the city's help, according to one council member, has quietly lobbied council members in recent weeks, inviting Phoebe Miller, Ed Astel, Bobby Jameson and Bob King to its office for private presentations. That method, dubbed a "divide-and-conquer" approach by King, seems likely to pay off. Several council members said because the deal is back on the city's 5:30 p.m. Finance Committee agenda, the votes are there to pass it. If it does pass, the bond agreement would re-establish a partnership between the city and Noisette that began with great fanfare seven years ago but has soured over the company's private borrowing, the quality of its riverfront park and the lack of new construction. Mayor Keith Summey said the delay in getting the measure before City Council was to give the city time to vet the details and get comfortable with the deal. "We're protected, and I just think it's an opportunity to tax them and get it started and make it work for us," Summey said. "It's got to go, that's the bottom line." Noisette's performance has generated mixed feelings about this next step. Molly Goodwin, who has served on Noisette's advisory board for several years, said some residents still feel the base redevelopment is a good idea and the city should help. "It has not been as fast as we want it to be," she said. "These things are often not, especially when they're cutting edge." Park Circle resident Clem Arsenault disagreed. "I am shocked at the pace," he said. "You can look at other reuse developments, and they're substantially swifter than what's happened here." Other residents, such as Gayle Frampton, president of the North East Park Circle Civic Club, are ambiguous, uncomfortable with the city's possible new involvement but unclear about alternatives. "On the one hand, I know the infrastructure has to be done," she said. "On the other hand, I hope if it goes on the back of the taxpayers, the taxpayers get their money's worth." A Noisette spokesman could not be reached for comment Friday. North Charleston's bond deal is similar to one that the city of Charleston struck recently with the Magnolia redevelopment project in that city's Neck Area. According to North Charleston's proposed deal, taxpayers would not be on the hook to repay the bonds if future tax collections prove insufficient. But if things go bad, the base could be sold at a tax sale. "Presumably … the bondholders would be repaid from the money generated by that sale," according to a briefing on the deal prepared for City Council. If they're not, the stigma of a default would be linked to the city and jeopardize its future borrowing, according to the briefing. King, who opposes the deal, criticized Noisette's method of persuading council members one-on-one, rather than meeting in open session. King said it is time for the Noisette company to "stand on their own two feet." "We should not make any exceptions," he said. "We should handle them like we do everyone else. They need to get their own money together." Reach James Scott at 745-5855 or at jscott@postandcourier.com. Reach Robert Behre at 937-5771 or at rbehre@postandcourier.com. |
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Comments
This article has 10 comment(s)
Posted by USC_Alumni on November 24, 2007 at 5:59 a.m. (Suggest removal)
This is just another sign of the VERY BAD local government in North Charleston. They made a bad decision when they decided to go with the Noisette Co., and the Noisette Co continues to play them like violins. So now we are at a point where a financially broken company wants the city to borrow money so they can complete a job they promised to finish. Can you imagine a plumber, a HVAC compnay, a concrete company coming to your house starting a job then asking you to borrow some money so they can complete the job?
All of that waterfront property, and property in general, and the government of North Charleston can't seem to get it developed.
Maybe the local government of North Charleston should contract out the redevelopment to a more compentent local government, because it's obvious they can't get it done.
Posted by stand828 on November 24, 2007 at 9:01 a.m. (Suggest removal)
Noisette...oh, I remember them.
Have they actually done anything since they held the big public presentation years ago, telling everyone of their new vision for the city. The Cosgrove area going to the Navy base, the base itself, the area up toward Park Circle, the old Pinehaven shopping center, and many other things would be improved and rebuilt. Then nothing happened. Still nothing has happened.
And it's great that they want to redevelop the Navy base...but what good is having shiny new redevelopment on the Navy base if you still have to drive through what's practically a war zone to get to it? If they want the plan to progress, then they should offer some assurance that they haven't forgotten about the rest of the plan, and we need to see at least some activity to indicate that they are keeping the whole picture in mind.
So before the city goes financing these bonds, somebody needs to sit some of the Noisettes down and ask them some questions about these things before we go risking anything else for a project that seems to be having big trouble even getting off the ground.
Posted by poorboy on November 24, 2007 at 10:46 a.m. (Suggest removal)
Unbelievable that after all these years this is what you got? A lousy, 2nd rate water front park and no developments. Sell it to reputable, local development company and get your hands out of it. The only say the city of NC should have in the matter is by re-zoning issues, and gathering the taxes and fees during the building process. This could have been a hot area for growth had the city stepped aside. Since when does a local government get involved with developing property.
Sounds like Noisette only wants you to play banker for their broke butts!
Posted by ndv on November 24, 2007 at 12:01 p.m. (Suggest removal)
Yet another example of the private sector sucking resources (read: tax dollars) from the public sector. Should the council vote 'yes', there ought to be an amendment or a stipulation that creates a 'true' public-private partnership that grants the city decision making power over subsidy expenditures, or simply stipulate exactly what the subsidies will fund. Infrastructure? OK. A lake? Give me a break!
We're also betting on the future on this one, hoping for a significant increase between the present value and the future value. Given the eye of the subprime storm has yet to pass, I'm not so sure this is a good deal for NC.
Posted by burton on November 24, 2007 at 4:13 p.m. (Suggest removal)
"If it does pass, the bond agreement would re-establish a partnership between the city and Noisette that began with great fanfare seven years ago but has soured over the company's private borrowing, the quality of its riverfront park and the lack of new construction."
So council is a bank now? Seven years and all that has been done is a waterfront park! Well, it is a 20 year plan so let's see what happens over the next 13 years! LOL
Posted by SCVOTER on November 24, 2007 at 10:12 p.m. (Suggest removal)
Why is everyone so down on this development? When Noisette first revealed their plan it was a 20 year plan. I understand there have been some delays, but overall there are some really great things happening...Riverfront Park, East Montague, Carolina Bio-diesel, LostTrades.com, Store House 10, The College of the Building Arts, not to mention all the work they have done to help local non-profits. Development this size is complex, and requires innovative funding.
As a young person who just purchased my first home in North Charleston it is great to be a part of something so cutting edge. It is understandable that some Council member would be too rooted in the old way of doing things in North Charleston to be in favor of change....maybe they realize they are just too old to wait for a 20 year plan to take shape.
Posted by build259 on November 25, 2007 at 10:17 p.m. (Suggest removal)
This deal should go forward, but only if John Knott is no longer involved. His number 2 guy, Titus is capable and does not have the history of failure following Knott from state to state and project to project.
Posted by sgraham742 on November 26, 2007 at 6:09 p.m. (Suggest removal)
OK, this article is a very biased article, there is no mention of all the great things going on over in this area. It does not mention that John Knott, and the several awards The Noisette Company, and John himself have recieved in the last 6 months for all the incredilbe things they are doing in North Charleston, and also Charleston.
Wake up people this was, and is a 25 year plan. It is not going to happen over night. There are many things that Nosiette is doing on a daily basis. People also need to undrestand that Noisette does not own all the base, it owns some. They also need to understand this is was not property that you could just go out and purchase. There were many federal government issues that had to be worked out first.
I live, run my busiess, and have a family member that is going to school at The American College of the Building Arts. In the last 3 1/2 years we see changes everyday all over the community. It took a long time to make this community look this bad, it is going to take some time to redevelop.
James Scott does not need to be writing one sided articles, with mis-quotes. He does not like John, and it clearly comes out in every article he writes about Noisette.
To the person that said Titus is John top guy obviously does not know much about Noisette.
Posted by Trujournalism on November 26, 2007 at 8:48 p.m. (Suggest removal)
It's amazing how ill-informed the public is, but why should I be surprised? The answer--Scott is great at leaving out the important details and does what any biased journalist knows how to do best--skew a story.
The TIF for the Charleston Naval Base was established in 1994. The bonds would be issued to reimburse private funds to create/fix drainage, new streets, water, sewer and other infrastructure on the old Naval Base. So how is this process any different from the Magnolia development, and why isn't Magnolia development getting this much criticism?
Perhaps the rest of Charleston doesn't want to see, or even believes, that progress can happen sucessfully in North Charleston? Or that surrounding towns/cities feel threatened that North Charleston has taken a bold step into the future? Or that Scott simply has a bone to pick with Noisette?
I guess the proposed frozen chicken/processing plant on the old Naval Base would have been a better option for North Charleston, to complete the paper mill and coal facility that pollute our air and water.
Heaven forbid North Charleston work with a company and a 20 YEAR PLAN (read--not overnight plan) that is currently and will continue to put North Charleston on the map for GOOD reasons.
What brought me to North Charleston? The buzz of Noisette, an affordable house to purchase (try to find one in any area of Charleston these days) and a growing community that cares about the future that can think long term rather than fall victim to instant gratification. Out of all the places I have lived, I am truly proud to call North Charleston home, and as strange and frightening as that may seem to others, I have met some of the best people out here, many of which are good friends and even better neighbors.
Posted by Trujournalism on November 26, 2007 at 8:59 p.m. (Suggest removal)
What people will find if they actually bother to venture out to the Navy Yard/Noisette:
College of the Building Arts
Lost Trades
Coast Brewing
10 Storehouse Row (which held an amazing Kulture Klash party recently)
MANY local artists/craftsmen/INDEPENDENT businessowners
Design companies
Future home of a Clemson University campus
Southeast Biodiesel
Fisher Recycling
A Riverfront Park that the public and the city are starting to utilize more and more
And many more to come...
And what development has recently come to your area that has a mentoring program for students? Or a non-profit that intended to serve North Charleston residents on ways of conserving energy, but is in such high demand by all of Charleston that it now needs more space and employees? Or a vision that there can be affordable housing for all, when the city, residents and developers work for the common good of the people?
Hmmm...Seems like there are folks out there that want North Charleston to fail.