Addressing Savannah's housing shortage: A new townhome complex is coming to Garden City

Garden City residents could be getting a new townhome complex located off of U.S. 80 by the end of 2024. In a push to increase the city’s housing stock, Garden City council members approved a proposal during a Nov. 21 council meeting from Konter Development Company to build 136 townhomes on a 10.6-acre property at 2779 U.S. 80, located east of the Dean Forest Road interchange. 

Konter Development Company purchased the city-owned property for $1,904,000. The proceeds will go towards the development of the new gym complex located on the city's eastside, according to City Manager Scott Robider. 

Garden City gym complex:School district plans to acquire Garden City gym complex, proceeds will boost new recreation

Final plans and designs for the 10.6 acres will depend on findings within the 60-day due diligence period where Konter Development Company will determine if the land is able to be developed. 

The developer’s current plans are to build 24 one-bedroom townhomes, 88 two bedrooms and 24 three bedrooms, as well as 24 single-car garages and 16 storage units. 

The community will also include amenities such as a clubhouse, resort-style swimming pool, playground, picnic area and carwash. Konter Development will also incorporate the National Green Building Standard, which increases the sustainability of the project by reducing energy consumption and natural resource use, which will reduce residents’ monthly utility costs. 

Development: the city memorandum on the development proposals

Read: full Konter Development proposal

While the units will be rented at market-rate prices, the developer emphasized that they are aiming to create attainable housing for the general workforce rather than luxury housing. Average rent for an apartment in Garden City is around $1,400 a month, according to the apartment search website, RentCafe. 

The Retreat at Garden Lakes, located about 1.6 miles east of the potential new development, was also developed and owned by Konter Development Company. The average monthly rent for the one and two bedrooms there ranges between $1,100 and $1,275.  

Konter is a familiar homebuilder in Savannah

Founded in 1977, the Konter Companies portfolio includes multi-family and single-family home developments, as well as retail/office space, across the Savannah area. In Chatham County, the company developed and owns the Retreat at Henderson Lakes and Preserve at Henderson Lakes off of Little Neck Road and the Preserve at Quacco Woods. Konter Development also developed the Savannah Highlands, a sprawling single-family home neighborhood off Benton Boulevard. 

“Both in our single family and in our multifamily divisions, we look to create attainable housing,” said Mark Konter. “Obviously there's a lot of factors that go into that – land cost, infrastructure development costs, construction costs, what’s happening in the broader economy – but our goal is to make housing as attainable as possible for the broadest spectrum.”

Home repair grant:Federal CHIP grant will improve homes in Garden City's Rossignol Hill neighborhood

Garden City is currently pushing to increase its housing stock as west Chatham County and the broader region continues to face pressures to build industry-related developments. As a neighbor to the Savannah Ports, Garden City has contended with aggressive industrial encroachment and is now focusing on improving the city's livability. 

According to Robider, land appraisals revealed that the 10.6-acre property could be worth five times as much if rezoned to industrial use. 

“But that’s not what we’re trying to do,” said Robider.

In May, the city council implemented a moratorium on industrial rezonings to revise the zoning ordinance and foster the construction of new residential development. The moratorium is set to expire at the end of January 2023. Seeking residential development for the 10.6-acre property was part of this housing push.

In addition to creating attainable living spaces for the incoming workforce, the proceeds from the purchase of the land will be funneled into recreation for the existing residents. 

Another developer pushed plan for site

Another proposal from Park Terrace Development was rejected by the council in favor of the Konter Development proposal. Park Terrace’s proposal did not offer to purchase the property upfront, but, instead, suggested a public-private partnership with the city.

The city would retain ownership of the property, possibly through a city housing authority, and fund the design and construction of the residential development through debt service. Park Terrace would act as the developers of the project and would stay with the development if awarded a maintenance contract. 

The proposal outlined that the city would benefit from retaining control and ownership of the development and, therefore, receive all cash flow from rent thereafter. The funding mechanism would have generated more revenue for the city in the long term (after 10 years). 

After a review period in October, in which a seven-member team composed of city staff and department heads scored each proposal, Konter Development’s bid was rated higher. 

“You have one entity proposing $0 and another entity that is proposing $1.9 million, a firm price to promote residential housing,” said Robider, who did not participate in the scoring or choosing of the bid. “One (Konter) is falling more in line with the spirit and intent of the bid.”

Both proposals aimed to build what developers are calling “attainable housing”, which is unsubsidized, profitable housing developments that meet the needs of those with incomes between 80% and 120% of the area median income. 

Garden :Affordable housing is hard to find in and near Savannah. Garden City leaders see opportunity.

While the city manager said the city is still looking to build “housing for all”, the property off of U.S. 80 would not have met the public transportation needs for an affordable housing complex. 

Previous plans to build an affordable housing development on the old Haynes Elementary School property shifted earlier this year. The site will instead house the new gym complex. The plans came into fruition after the Savannah-Chatham County Public School System agreed to purchase the city’s existing rec center on Priscilla D. Thomas Way to expand the construction of the Groves K-12 school.

Nancy Guan is the general assignment reporter covering Chatham County municipalities. Reach her at nguan@gannett.com or on Twitter @nancyguann.