As fairgrounds project nears development agreement, city receives $2.5 million grant support

The vision to turn Savannah's fairgrounds into affordable housing has gained momentum this week.

Just days after Mayor Van Johnson announced the city was in the final stages of a development agreement with a developer, the site was awarded $2.5 million in state funds through the OneGeorgia Rural Workforce Housing Initiative. The money will go toward sewer infrastructure improvements, reducing the costs of a lift station and additional sewer lines on the site, according to a City of Savannah spokesperson.

“For years now we have been working diligently to transform the former fairgrounds property into affordable housing," said Johnson in a press release. "This grant is a big step in the right direction and will help us fulfill our promise to the residents for use of this property and we are grateful for the State’s investment in our City.”

The grant award was announced by Governor Brian Kemp on Wednesday as part of the third round of grant recipients for the Rural Workforce Housing Initiative, which was kicked off in 2023. The state's 2024 amended budget included a $50 million boost to the program.

This round of grant awards totals more than $6.3 million for infrastructure development that will support more than 123 housing units across Georgia, according to a press release from Kemp's office.

"We have already seen a great response to the Rural Workforce Housing program, and this latest round of grants will further strengthen communities experiencing incredible economic growth," Kemp in a press release.

The City of Savannah press release said the entire fairgrounds project will include an estimated 400 housing units and a variety of mixed-use development. Wednesday's grant award is associated with the first phase of the development, where P3JVG is expected to develop 30 new single-family homes and 20 townhomes, according to the city's press release.

“This grant ensures we can maximize local investments into housing and other community needs, while the State helps pay for the water and sewer infrastructure needed to support the project," said City Manager Jay Melder in a press release.

Evan Lasseter is the city and county government reporter for the Savannah Morning News. You can reach him at ELasseter@gannett.com.