Land deal raises questions for commissioner
 | |
| Bill Hullander | - Download MP3- |
By Brooks Rexroat
Staff Writer
By selling off a two-acre tract in late 2005, U.S. Xpress Enterprises recouped almost half the cost of 40 acres it bought from Hamilton County for an expansion project, records show.
The trucking company says it's holding open the option of selling more of the land, raising questions by a Hamilton County commissioner about such future deals with companies as officials try to recruit jobs.
Commissioner Bill Hullander said the county made a mistake when it paved the way for a company to profit off land meant for development.
"I thought we sold it too cheap," he said. "In fairness, that's shame on us and good business for them."
After paying Hamilton County $1.3 million for the 40 acres across Jenkins Road from its headquarters, U.S. Xpress recovered $500,000 by selling the two-acre chunk to a development group, paving the way for an On the Go convenience store and fuel station.
County Mayor Claude Ramsey said the deal was structured to keep U.S. Xpress, and 1,000 potential jobs, in Hamilton County.
"We gave them the chance to grow in Hamilton County," he said.
A U.S. Xpress spokeswoman said the company is simply operating under the deal's terms.
"We did sell a parcel to On the Go," said Lisa Pate, general counsel for U.S. Xpress. "We always proposed that the property to the left (of the annex building) would be sold off to support the campus."
While the company received tax breaks on the 28 acres earmarked for expansion, the remaining 12 acres of property are not abated, she said.
U.S. Xpress was also responsible for leveling the land, Ms. Pate said. As far as she knows, the land is not being marketed, and the company has no firm building plans.
But Mr. Hullander said the company should have been furnished with the land it needed to expand, with the rest held by the county for development, or the price should have been raised on the full 40 acres.
"I can't hold them liable for getting a good deal," he said about the Chattanooga-based company.
The trucking fleet operator in 2005 needed about 28 acres for the office expansion that is to include a pair of 50,000-square-foot buildings, company spokesman Greg Thompson said.
"Looking back, the purchase of the land was the right deal at the right time," Mr. Thompson said. "Our efforts in developing the site have focused on supporting the campus and the community."
Mr. Ramsey said U.S. Xpress had an option on less expensive land in North Georgia so the county bundled additional land into the deal, with the agreement U.S. Xpress could sell off excess property to help bridge the price gap and add 1,000 jobs in Hamilton County.
"We were interested in the jobs," he said. "They've added about 200 jobs, and the target was eventually about 1,000."
Before the trucker's first annex building opened early in 2006, Associated Developers LLC, a U.S. Xpress company, sold 2.02 acres to Real Estate Investment LLC for the convenience store. The transfer occurred Dec. 29, 2005, according to county records.
While the company bought the 40 acres for $32,500 per acre, it sold the two acres for $500,000, a gain of $435,000.
Mr. Hullander said that should not have happened.
"If it's just the land for the offices we're selling, that's one thing," Mr. Hullander said. "But we need to tighten the reins up."
Mr. Ramsey said the company envisioned selling plots to build a support campus including the convenience store and fuel station, a bank and an extended stay motel. That would contribute to the company's operations while helping make the land deal financially feasible for the company, Mr. Ramsey said.
"That was one of the ways to recoup the cost," he said.
So far, only the convenience store has been built.
If the rest of the envisioned businesses appear, Mr. Hullander said, the jobs and sales tax could have a benefit for Hamilton County.
Still, he said he likes for the county to handle those negotiations rather than have companies serving as real estate developers with county land.
Mr. Hullander said the deal has made him leery of similar proposals in the future.
Mr. Ramsey said job growth is what the county aimed for when it made the deal. Since that growth is under way, he said, he's satisfied.
"We develop land for the creation of jobs, and their commitment over the next five to seven years was significant," he said.
The land had been a hole, Mr. Ramsey said, which was filled with dirt when the Jenkins Road overpass was constructed.
He said he's satisfied in the progress at the site and will continue to consider any deals that will bring jobs to the county.
"Depending on the number of jobs and the opportunity available, we would consider doing it again," Mr. Ramsey said.
E-mail Brooks Rexroat at brexroat@timesfreepress.com
Print
Send to a Friend
