Jekyl Island, GA (state park/resort) planning deal/debacle?

from today's Atlanta Journal Constitution:

'Sweetheart deal' alleged at Jekyll
Plum for developer: Critics say state's $10 million rent break on such valuable land is absurd.

By Dan Chapman
The Atlanta Journal-Constitution
Published on: 07/23/07

The board that runs Jekyll Island, the financially strapped state park that's in line for billions of dollars of new hotels and condos, recently granted one of the nation's largest developers a rent break that could top $10 million.

The Jekyll Island Authority board approved a passel of incentives last month for Trammell Crow Co. and partners that is scheduled to run through 2020. Local and state governments routinely offer subsidies to spur development, particularly in little-developed, undesirable locales.

But critics counter that Jekyll is potentially a red-hot property and special subsidies aren't needed to further its development." ....

"Meanwhile, other developers planning big hotel and condo projects on Jekyll said last week they too would seek similar subsidies from the Authority, which could hinder the state park's ability to fix its historic district or renourish its beaches. The authority, which rarely receives state funds, doesn't have enough money for all upgrades.

Ben Porter, chairman of the authority board, defends the incentives, saying they are necessary to ensure Trammell Crow moves forward quickly with the proposed $90 million hotel and condo project." ....

"Jekyll's latest turn in the spotlight comes as the Authority revs up development of the state park/residential enclave/convention destination/beach resort. After a contentious session of the Georgia Legislature that pitted island preservationists against those who favor development, Gov. Sonny Perdue signed a bill to prohibit construction on the island's south end.

The state bought Jekyll in 1947 and designated it "a state park for the plain people of Georgia." By law, 65 percent of the island must remain undeveloped.

Developers are keen to build hotels, condos, restaurants and more on the remaining 35 percent. Big-time developers, including Trammell Crow, The Jacoby Group and Mercer Reynolds, seek to become the authority's development partner, responsible for coordinating an estimated $3 billion in new construction on the island." ....

"The Dallas-based real-estate conglomerate, along with two partners, proposes a $90 million project on 9.7 oceanfront acres where the rundown Buccaneer Beach Resort now sits. Trammell Crow plans to build 300 hotel rooms, 120 condos, a restaurant, spa and meeting rooms." ....
"RENT BREAK

The Jekyll Island Authority runs the state park and collects revenue from hotels, food and beverage sales, parking fees and more. It sometimes gives incentives for new development. The incentives for Trammell Crow Co. will kick in once the hotel opens, scheduled for 2010. According to an analysis by the authority:

In the first year of operation, Trammell Crow will get a break on the rent and food and beverage fees it pays the authority, worth an estimated $828,000.

Incentives reach $1.06 million in the sixth year.

By 2020, the authority will have relinquished $10.03 million in subsidies. The state park will have received $4.9 million in rent.

That year, Trammell Crow will start paying full rent.

Note: Estimates could change depending on the eventual size and success of the project."

for the full story see: http://www.ajc.com/search/content/jekyll.html