Partner joining CaroLinks
By GENE ZALESKIT&D Staff Writer Saturday, March 24, 2007
CHARLESTON – Carolina Linkages, the industrial real estate and intermodal development company with plans to build an intermodal transportation and distribution network/inland port in Orangeburg County, announced Friday it has entered into an operating partnership with Charleston-based developer The Weiser Companies Inc..
The partnership will be a joint venture between CaroLinks Real Estate Development LLC and Weiser Links LLC.
Under the venture, Weiser will be responsible for overseeing the entire project from groundbreaking to working with the project architect and the actual execution of the building.
CaroLinks will share with Weiser the marketing and business development of the project.
The Weiser Companies has management offices in Reston, Va., and Honolulu, Hawaii.
“CaroLinks is pleased to have The Weiser Companies join our team,” CaroLinks’ President and CEO Lucy Duncan-Scheman said. “Richard Weiser, president of The Weiser Companies, shares our vision to develop a world-class regional hub servicing companies involved in large scale distribution, assembly, manufacturing, cargo storage and transfer.”
“It is great to be partnering with CaroLinks on such a far-sighted project,” Weiser said. “We are particularly focused on the location as it provides direct access to I-95 and CSX rail lines; we believe that the transportation efficiencies for companies locating here will be significant.”
Weiser added, “We are convinced that there is a large and growing need for warehousing to service consolidation and de-consolidation requirements for importers and exporters using the ports of Savannah and Charleston, and are very pleased to have been selected by CaroLinks to be the developer.”
Developments of The Weiser Companies include Centre Pointe, a 300-acre office and retail development in North Charleston, Kalani Industrial Park in Honolulu and Coco Palms – a resort made famous by Elvis Presley’s movie “Blue Hawaii,” which was redeveloped into condominiums, restaurants and conference facilities in Hawaii.
The Weiser group of companies was founded in 1986 by Richard Weiser as a development, management and leasing entity for development projects.
DMR Architects of Charlotte, N.C. has been selected as the architect for master planning, and is well along in developing conceptual plans, CaroLinks Vice President of Corporate Communications Alan Capper said.
CaroLinks announced in January 2006 its plans to develop an inland port in the county, projecting the entire project to cost about $250 million, with about $20 million being paid by CaroLinks.
The remaining monies will have to come from private interests. Government monies are not expected to be a part of the project.
CaroLinks has options to buy the 800-acre Orangeburg County property owned by Jim Roquemore, president of Orangeburg-based SuperSod Inc., and Ben Copeland, CEO of Patton Seed Co.
Under an option agreement, termination or an extension of the option typically reside with the landowner and potential buyer.
“The property is under option, and it is completely safe,” Capper said, adding that with the project in the planning stages, there is no reason to begin assuming debt service on the purchased land until time to construct. “It is about debt serving on one side and planning on the other.”
The company has failed to meet several deadlines to purchase the property, with company officials affirming that the project is moving forward, though acknowledging the progress has been slower than anticipated.
The company has said it plans to invest $10 million to $15 million in developing the inland port over the next five years.
Other plans are to develop a 75- to 100-acre site dedicated to trucks and an emergency preparedness site.
A part of the project would require a full interchange at I-95 and U.S. 301. That would cost $40 million.
Through January 2007, about $8 million had been set aside for the interchange, with $2 million coming from the county’s penny capital project sales tax, $3 million from the S.C. Department of Transportation and $3 million from the federal government.
CaroLinks officials say the distribution center would alleviate congestion at the Port of Charleston while saving money for companies not having to travel to the port.
Groundbreaking was originally scheduled for late February, but Capper declined offering any more speculation on when the company may purchase the property or when groundbreaking may occur.
“The worst thing we can do is raise expectation and not follow through with the date,” he said.
When asked if groundbreaking is planned for this year, Capper said, “Oh, heavens, yes,” adding that the originally scheduled operational date is still for 2008.
“This means there will be some elements completed and some business done and revenues coming in,” he said.
In the interim, Capper said CaroLinks is in continued discussion with perspective companies that have shown interest in the company’s plans.
He said CaroLinks has engaged a number of companies, each showing interest in the location and its interstate access.
Capper declined providing specific details on the companies but said they have ranged from regional companies with South Carolina headquarters to Fortune 500 companies attracted to the interstate and rail access.
“We have started a marketing campaign, and we are looking to step it up now that we are moving to spring. With winter behind us, it will be easier to bring people down here and show them the site,” Capper said.
Throughout the process, the company will conduct a marketing and communications campaign aimed at industrial and other prospects.
Since CaroLinks’ announcement, its proposal has experienced some setbacks and has been surrounded by controversy.
In December, the company announced it was withdrawing its efforts to seek a permit to barge between Charleston and Santee. CaroLinks said the permitting process would prove lengthy and costly. CaroLinks said the decision not to barge was strictly a financial and commercial decision and was not influenced by opposition.
In September, the company decided to halt the acquisition of a Shipyard Creek site in North Charleston, which was included in its original plans. The site was going to serve as a base for cargo distribution.
Santee residents have been outspoken against the project and have frequently demanded answers to their questions, alleging the company and Santee town officials have not been forthcoming.
Company officials and Orangeburg County economic development leaders have said the project will be compatible with Santee’s “Oasis of Recreation” environment and will not harm the quality of life or wildlife.
T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com.
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