Jackson Progress-Argus

By Stewart Voegtlin

stewart@jacksonprogress-argus.com

The Butts County Development Authority and reputable industrial developer Panattoni are putting the finishing touches on a deal following a meeting last Friday. The Authority is considering a Letter of Intent (LOI) from the developer to market its 298-acre tract.

The 298-acre tract located off Highway 36 West was purchased in 2003 and spreads over three counties: Lamar, Spalding, and Butts, with the majority of the land - 186.10 acres - falling inside the Butts County line. The acreage includes the northern part of High Falls Lake where the Towaliga River feeds into the lake, and is partially bordered on the west by Short Road.

A partnership with Panattoni would give the developer exclusive rights to negotiate sale of the acreage.

Authority Director Alan White characterized Panattoni as a "one-stop shop to pitching developments." Panattoni benefits from a strong marketing department, engineers, design experts and numerous contacts.

Authority Board Chairman Bart White and Panattoni Senior Vice President Project Manager Mike Gray discussed broker John Stromnes' possible role in marketing the property.

White said Stromnes had earned a referral fee for bringing the county and Panattoni together, but shouldn't be entitled to a sizable commission if the land sells.

"I'll cover [Stromnes] if there's a sale," said Gray. "If there's heartburn here, we'll bring it back on me."

Gray, while extraordinarily upbeat, presented a realistic picture.

"I am confident we can make something happen on this site," said Gray. "But the next three years look very scary. It's going to be up to you to provide incentives. The world's been going by Butts. I've pitched to your site and I can bring activity here. This is a huge commitment from [Panattoni], and we are going to add value by being a partner. You have the leading industrial developer putting a flag on your site. That's the reality.

"I'm going to need five years," Gray continued. "I don't like having my hands tied to produce something in three years. We're in the most depressed real estate market of all time, and we're going to fill up a huge goodwill bucket before making a dollar."

Gray said the five year time period begins as soon as the Authority signs the contract.

"[The Authority] had the best five years of the real estate market, and you've still got a wooded site," said Gray. "We're all going to grab hands and jump off a cliff. But you've got to understand the horsepower you're getting. You need to cast the largest net you can and you're not even on the map yet."

"We get a lot of criticism because the land is sitting there and the county is paying for it," said Authority Director Alan White.

"[Panattoni] is in the business of improving communities," said Gray. "Hopefully, we can get this going, get your debt out of the way and do it again. You're putting trust in Panattoni and in me. I'm ready to dig in."

Panattoni recently brought a 1.2 million square-foot Whirlpool warehouse to Henry County.

"The Whirlpool situation is a classic example of what Panattoni does best, " said White. "Henry County had the land; they turned it over to Panattoni and then they brought in a buyer."

If the Authority accepts Panattoni's LOI, the developer will be able to sell the tract whole or piecemeal. Panattoni will pay the Authority for the land, and erect a building - or buildings - according to buyer's specifications. Potential buyers will then lease structures from the developer.

White said while the price per acre is $19,000, the figure is not static.

"Should the Authority and county go in and improve a road, that will increase the price per acre," said White. "Price will be flexible according to improvements made."

"Panattoni is the largest private industrial developer and largest developer period," said Authority Chairman Bart White. "They've brought more built-to-suit than any other developer in the past five years. We owe it to the taxpayers to not mess this up."