With new building partners, the proposed $150 million mixed-use development project in Hardeeville is moving forward with plans to build the commercial structures first.
Gateway Crossing Development Partners announced in October 2011 the project slated for 319 acres off Interstate 95 and Exit 5 on Frontage Road.
Ralph Braden, managing partner of Gateway Crossing Partners, said this week that significant changes were made to how the project would be implemented.
“It’s the same project but how we begin building is now a more feasible plan,” he said. “We will begin more moderate and it will end up the original size eight years later.”
Beginning on U.S. 17 with the development of a grocery store, restaurants and multi-family housing immediately, the single housing development will begin when the demand presents itself, he said.
In September 2012, he partnered with Jim Chaffin and Jim Light to set a new timeline for the project that was expected to provide affordable housing, rental units, a grocery store, medical center and senior living facilities.
Chaffin could not be reached for comment.
“We want to have realistic development and we do it as the demand is there,” Braden said. “We’ve had to re-analyze the project and take it in different steps.”
City Manager Bob Nanni said the city last heard from Gateway Crossing about two months ago before the holidays.
“They partnered with Chaffin, who was going to make changes from the original plan and that they would move earlier on the commercial,” he said.
Braden said they want to make sure the schedule of the project is planned accordingly before presenting to the City Council.
The developers want to use tax increment financing to pay for the development. TIF is a financing method that uses future gains in taxes to finance current improvements.
TIF is a big part of the project and Gateway Crossing cannot happen without the approval of the City Council, Braden said.
“The city will not be at risk, but has to approve it,” he said. “The project takes a lot of careful planning because we want to offer the best quality, but also make it affordable.”
Nanni said the city is in process of putting together a TIF policy and model and will present the policy to City Council in the near future. Previously, the city had no TIF policy.
“It is a major financial decision that should be backed by a policy,” Nanni said. “In terms of numbers, this is the second TIF proposal that is coming before the council. There is Gateway Crossing and another in Okatie. It is simply good financial management to have a policy to guide those decisions.”
Despite the funding issues and finding a suitable building partner, the project of Gateway Crossing continues to move forward. Braden said construction could begin this year. He gave no timeframe to when he would present the revamped project to City Council.
“When go before the council, we want to know exactly what we’re doing and share exactly what they’re going to be a part of,” Braden said.