The Magnolia Project

[SimCity]

The Magnolia Development Company will seek to remove the soil contamination located on an old phosphate mine and chemical manufacturing site in a joint effort witht the former owners of the site, Exxon Mobil. The 35 acre site and another 65 acres nearby will eventually be the location of "2,800 residential units, hundreds of thousands of square feet for new offices, businesses, hotels and parks and as many as 7,000 parking spaces." The land is across the street from the old Baker Hospital where incidentally a taxi driver was found murdered a few years ago. Environmental cleanup is expected to begin in June and will involve the removal and burial of tons of polluted soil up to 8 ft. in depth. While a definite sign of progress and environmental good, one has to wonder how this will affect the mostly low income residents of the surrounding Charleston Heights neighborhoods. In addition this has the potential to greatly increase the amount of traffic using the I-26/Cosgrove Interchange and the eventual port connector to be located near the King/Meeting St. exit.

[Spartan]

The effect on the low income people is an important consideration. Unfortunately the poor are often the easiest to push around, but this is nothing new. You have to decide what is more important- the improvement of a neighborhood or the maintenace of an existing but dying neighborhood.

[krazeeboi]

Charleston's Planning Commission on yesterday approved the concept plan for Magnolia according to the P&C. Magnolia Development hopes to start work on roads later this year and begin building construction next year.

[vicupstate]

Road plans signal progress at Magnolia Project

More infrastructure plans in preparation for the Magnolia Project. I can't wait to see the first actual project to be unveiled. Has there been any discussion of what the first project will be - office or residential? Any time line? Anyone?

[Spartan]

Its god to see more signs of progress here. My thought is that the first project will probably be commercial in nature.

[knightrider162]

If you haven't seen it, here is the conceptual plan for Magnolia. They have several great ideas and I can't wait for the intimate details to start coming out.

[vicupstate]

Magnolia Project is back on tract. It sounds as if demolition work is going to kick into high gear before too much longer. Take your 'beforre' pictures now.

Magnolia Project back on track

[Spartan]

Thanks for the update vic! I'm glad to know that this project is finally moving forward.

[Vourmbianigoat]

Thanks for the update vic! I'm glad to know that this project is finally moving forward.

Does anyone know the latest on Magnolia? I believe Noisette is in financial trouble is it the same for Maggie or are they still going through with preparing the area for construction?

[Spartan]

Thanks for reviving this one. I haven't seen anything recently. Though there did appear to be some dirt moving around on the Magnolia site the last time I was down there.

[Vourmbianigoat]

Thanks for reviving this one. I haven't seen anything recently. Though there did appear to be some dirt moving around on the Magnolia site the last time I was down there.

Well that's promising, haha

[digital_sandlapper]

One entrance into the Magnolia Project has been enchanced with the re-paving of Heriot Street, and its intesection with Rutledge Avenue. I checked it out the last time I was there--eventually Heriot Street will continue over a new causeway being built over the marsh and into Magnolia.

Heriot Street was once just a quiet, almost rural lane of humble homes and a way to get to the rifle club on the river beyond. Boy, those days are now over--wonder how the residents feel? Not ony will traffic increase, but their property values have skyrocketed, and probably their taxes, too. The improved drainage, sidewalks, and lighting should be welcome, though.

Edited May 4, 2009 by digital_sandlapper

[vicupstate]

Major setback for these projects, but the cleanup and infrastructure are in place or lined up it seems. Hopefully a more financially sound investor will pick up where the first left off, or perhaps they will do a joint venture. With Boeing in place, it's hard to believe these areas will continue to stay vacant indefinitely.

http://www.postandcourier.com/news/2011/dec/08/plans-to-redevelop-industrial-area-fade/

[erm1981]

Im pretty sure Ive seen activity in this area during my commute to work some mornings. I will take a better look this week.

[Spartan]

Since this project isn't moving or is dead, I'm going to unpin this topic. If it gets revived I'll be glad to pin it back.

[vicupstate]

Apparently this project is reemerging.  City Council will be voting next week on approving copious agreements with the owners. There will be a TIF to fund infrastructure. 

[Spartan]

Awesome news!

I also saw where City Council is voting on new zoning for the Neck/upper peninsula area that would allow for high rises.

[vicupstate]

Awesome news!

I also saw where City Council is voting on new zoning for the Neck/upper peninsula area that would allow for high rises.

Are you referring to the Midtown area?  You can build up to 100 feet there now. That is not what I refer to as 'neck' though.  I would hope they would allow heights even taller than 100 feet in Magnolia.  The prices in Charleston County are just getting outrageous and the sprawl is getting crazy.  They really need to start building upward to help limit the sprawl.  

[Spartan]

Nope, the area I'm referencing is east of 26 and north of the crosstown along Morrison and Meeting. Here's a link to the article I read in the City Paper: http://www.charlestoncitypaper.com/TheBattery/archives/2015/07/16/upper-peninsula-zoning-changes-could-bring-less-industry-taller-buildings

Here's a link to a larger PDF map from the City: http://www.charleston-sc.gov/DocumentCenter/View/7476 

[vicupstate]

Thanks for the info! I see that this is being considered currently and not yet in effect. Seems like a great idea, and if up to 15 stories is allowed in the shaded areas, it would be hard to see them not allowing the same thing in Magnolia. 

[vicupstate]

Magnolia Project owners selling site as part of bankruptcy

Hopefully someone will pick up where this group is leaving off. A TIF is already in place so hopefully that will draw interest. 

Reminds me of the Bull Street project in Cola in terms of its size and potential. 

 

[vicupstate]

Bankruptcy key to Magnolia Project going forward

WestRock is the likely new developer.  Good recap of this project's history too.

[vicupstate]

This project seems to be moving forward again. The city is about to approve infrastructure work in the $40 mm range. 

When completed the project will have 22 acres of public space and 4,100 residential units. 1,5 million SF in commercial/office space on the 182 acre site.    

[vicupstate]

Magnolia project buyer lined up

More on this project.

[vicupstate]

Rest of Magnolia Project sold

This sounds great. A new buyer with much of the remediation already done should be able to get this project completed.

 

A Texas real estate firm is set to buy 31 acres of the Magnolia property on the upper peninsula and is in talks to acquire the rest of the site, setting up a revival of the long-dormant redevelopment project.  An affiliate of Highland Resources Inc. of Houston was named the high bidder with its cash offer of $8.6 million at a U.S. Bankruptcy Court hearing in Charleston on Tuesday. The firm plans to finalize the deal no later than Jan. 31, after an inspection period, according to the sale agreement. It hopes to start cleaning the contaminated soil at the site as quickly as possible, CEO Charles W. Wolcott said. The vacant former industrial tract will be developed into a mix of commercial space and residences, he said. Judge David Duncan said he plans to approve the sale to HR Charleston LLC.

The deal effectively closes the interlocked bankruptcies of the two companies that owned the 182-acre Magnolia site. The tract is just across the marsh from Charleston’s Wagener Terrace neighborhood on the upper peninsula, between Interstate 26 and the Ashley River.  Decades ago, the land housed fertilizer factories, a lumber-treatment plant and other heavy industrial businesses. Those users left a legacy of lead, arsenic, creosote and other contaminants in the soil.

Led by Cherokee Investment Partners, the Magnolia backers set out to clean the property so it could be reused, describing their effort as the largest redevelopment of polluted land in South Carolina. The idea was to build a dense mix of homes and commercial space on the land.Raleigh-based Cherokee and its investors formed two companies, Ashley I and Ashley II, which began buying up property in 2002. Over time, they had amassed a large swath around Braswell and Milford streets.

The Magnolia master plan called for a small city: some 4,400 residences, 900 hotel rooms, 2 million square feet of commercial space, parks and a marina. But the deal faltered. Bogged down by the 2008 economic downturn, cleanup expenses and costly litigation, Ashley I and Ashley II filed for bankruptcy last year, listing debts of more than $23 million. The owners also disclosed they had invested more than $50 million in the deal from 2002 to 2008.

Ashley I LLC sold its holdings at a court auction in late 2016. The new owner is a group led-by former Nexton developer WestRock Co. The Ashley II property was more problematic. One of the primary uncertainties was the unknown cleanup cost for the 31-acre tract. Wolcott said his firm has years of experience dealing with contaminated real estate and working with regulators, and he's confident it can prepare the land for reuse. 

"The path is well known," Wolcott said after a 90-minute hearing Tuesday. 

He also said privately held Highland Resources is negotiating to acquire the rest of the vacant Magnolia site from the WestRock-led group. The piece that was up for grabs this week attracted two other qualified bids, said Columbia attorney Bill Metzger, who was in charge of selling it. Chicago-based Clarius Partners made the opening offer of $6.25 million. The other bidder, Magnolia North LLC, will serve as a backup buyer in case the Highland Resources deal falls through. Of the sale proceeds, $5.75 million will go to Ashley II's mortgage lender, and the U.S. Environmental Protection Agency will receive $2 million. The rest of the money will cover property taxes and miscellaneous expenses associated with the deal.