Savannah City Council not ready to hop on streetcar plan

A majority of the Savannah City Council is not ready to get behind Chatham Area Transit's plan for funding a downtown streetcar system.

That was made clear when CAT Executive Chadwick Reese requested a resolution be approved by the end of the year during a called meeting Monday afternoon.

Reese wants the city to create a tax allocation district in Savannah's west side, which would devote increased property revenue toward the streetcar system.

In addition to making the city more livable, Reese said the streetcar system would result in at least a 9-to-1 return on the estimated $55 million investment by spurring development in the area.

Reese requested that council establish a baseline for property values in the area by Dec. 31. That would capture the tax revenue from planned investment in the area.

"If we are going to do it, now is the time to do it," Reese said.

But the city currently has a number of funding issues to address, including a commitment to fund infrastructure improvements in the city's west side, said City Manager Stephanie Cutter.

The city also has to find the $10 million to pay the Savannah-Chatham School Board for agreeing to give up its property tax revenue from another tax district on the city's east side. Savannah is paying debt service on that district around Savannah River Landing after the economic downturn stalled development and the site failed to generate enough revenue to cover bond payments.

In addition, the city had to deplete most of its sales tax reserve for next year's budget, due to a new distribution agreement with the county.

The city would also have to get the county and school board to support the tax district before it could be created. So far, CAT has gotten no such commitment from either.

"In my opinion, it is too soon," Cutter said.

Alderwoman Mary Osborne, who is also on the CAT board, had pushed for city support of the resolution, stating it would not commit Savannah to establishing the tax district.

"It's become a time sensitive issue to capitalize on those dollars," Osborne said.

While the other council members offered general support for the streetcar concept, none were prepared to move forward with the resolution.

"TAD has left a bad taste in my mouth," said Alderwoman Mary Ellen Sprague, while referring to the east side tax district. "Mention that word and I just get ill."