N. Charleston files lawsuit challenging condemnation

Ashley Fletcher Frampton
Published Feb. 15, 2011

 

Following through on its promises to engage the state in a legal battle, the city of North Charleston has filed a lawsuit challenging the S.C. Department of Commerce’s right to take several parcels on the former Navy base to build a rail yard.

 

The Commerce Department on Dec. 22 announced plans for building a rail yard near the Port of Charleston’s new cargo terminal on the former base. At the rail yard, shipping containers would be assembled into trains.

 

The same week in late December, state officials served several property owners, including the city, with notices that it would use eminent domain to take parcels for the facility.

 

The city’s lawsuit, filed Jan. 21, seeks to overturn the condemnation action. In nine separate claims, the city argues that the Commerce Department and its S.C. Public Railways Division:

• Did not complete the project plans and financial studies required for condemnation.
• Did not follow certain procedures outlined under the state’s eminent domain laws.
• Cannot legally take the city’s land for a public use because it is already devoted to a public use.
• Lack the statutory authority to build a port-related rail yard. That authority belongs to the S.C. Department of Transportation and the S.C. State Ports Authority, the city claims.
• Are violating city contracts and debt obligations.
• The Commerce Department has not yet submitted a response to the lawsuit.

“We believe the claims are without merit and will be filing responses soon,” said Commerce spokeswoman Kara Borie.

 

North Charleston filed the lawsuit for each of the three parcels the Commerce Department seeks to take from the city itself, as well as a tract that the city deeded to Clemson University several years ago for its Restoration Institute.

 

City attorney Brady Hair said the recent lawsuit won’t be the last one that North Charleston files, though he declined to detail future filings.

 

“Challenging the condemnation is just the first shot across the bow,” Hair said.

 

The “heart and soul of the city’s position,” Hair said, is its contention that the state committed in 2002 not to run trains serving the new port terminal through the northern end of the former Navy base, and that the state is now breaking that promise.

 

The city sought that commitment from the S.C. State Ports Authority in a formal memorandum of understanding in an effort to protect redevelopment efforts on the northern end of the base.

 

“That deal was a written agreement approved by the Budget and Control Board, signed by the city and signed by the State Ports Authority,” Hair said. “And now the state, through the Department of Commerce, has tried to come in and break that deal, and we don’t believe they can do that.”

 

But Commerce Department officials and some state lawmakers have said that they are not breaking the deal. Instead, they say, the agreement was between the SPA and the city, and it does not bind them.

 

Those who support the state rail plan say it’s the best strategy for providing the two major rail carriers, CSX Transportation and Norfolk Southern Corp., with equal access to the new port terminal. That equal footing makes the Port of Charleston more competitive with other ports, they say.

 

CSX has proposed its own plan for a rail yard that would be accessed only from the southern end of the base. Company executives recently said they would share that yard with competitor Norfolk Southern, and share its costs, to achieve equal dual access.

 

RESIDENTIAL REAL ESTATES SALES VOLUME INCREASES, MEDIAN PRICE DECLINES IN JANUARY

CHARLESTON, SC—(February 10, 2011) According to preliminary data released by the Charleston Trident Association of REALTORS® 484 homes sold at a median price of $174,495 in January. Revised data for January 2010 shows that 450 homes sold at a median price of $193,000.

Homes are selling an average of 11 days faster than they were a year ago, with average days on market settling at 117 for January 2011.

“We anticipated the decline in prices and expect to see prices trend downward somewhat in the first part of this year—our foreclosure-heavy inventory isn’t going to support upward movement of prices, but it is encouraging to see another uptick in sales volume” said 2011 CTAR President Rob Woodul.

There were 8,428 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of January 31, 2011.

BERKELEY COUNTY
Preliminary figures show that 104 homes sold in Berkeley County at a median price of $151,775 in January.

89 Single-Family Detached homes sold at a median price of $160,000, while 14 Townhomes/Condos sold at a median price of $90,505.

The most active part of Berkeley County was the area bordered by Jedburg Road/Highway 17A/College Park.

Click here for a full report on Berkeley County.

CHARLESTON COUNTY
Preliminary figures show that 278 properties changed hands in Charleston County in January, at a median price of $219,949.

204 Single-Family Detached homes sold at a median price of $259,750 and 74 Townhomes/Condos changed hands at a median price of $135,000.

The area north of the Isle of Palms connector in Mount Pleasant had the most activity in the County, closely followed by the area of West Ashley outside I-526 and Mount Pleasant south of the Isle of Palms connector.

Click here for a full report on Charleston County.

DORCHESTER COUNTY
Preliminary figures show that 87 homes sold at a median price of $137,500 in Dorchester County in January.

76 Single-Family Detached homes sold at a median price of $144,000, while 11 Townhouses/Condos sold at a median price of $104,335.

The Summerville/Ridgeville area of Dorchester County was the most active in January.

Click here for a full report on Dorchester County.

With 3,000 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com.

Tips to Keep in Mind If You’re Thinking about becoming a Real Estate Investor

RISMEDIA

RISMEDIA, February 7, 2011—With homeownership dropping and rental vacancy rates rising, it is clear many Americans are looking to make a change to renting instead of owning their home. Currently, homeownership levels are at 66.5%, the lowest they’ve been since 1998, reported recently by the Department of Commerce, and the rental vacancy rate at 9.3%, the highest its been since 2003. Many prospective investors could take this information and apply it to a very lucrative decision for future investment property purchases.

Nancy Braun, owner and broker-in-charge of Showcase Realty has been a real estate broker for over 14 years. Her expertise lies in REOs, short sales, distressed properties and she recently became a Neighborhood HUD Listing Broker. A large amount of her listings are being sold to real estate investors and she is sharing a few questions and tips to keep in mind if you are thinking about becoming a real estate investor.

What is real estate investing?
Real estate can be a great long-term investment. It is a tangible, cash-generating asset and appreciates in value. Real estate investment has proven to be a powerful method of accumulating wealth over time and investors are getting a return on their investment (ROI) in three ways: cash flow, return on taxes and appreciation.

What are the benefits of real estate investing?
The main benefit of real estate investing is the profit that you can make if you handle your investment correctly. Having a rental property provides a source of regular income, but other than that, investment properties qualify for numerous tax deductions which may include cost of building maintenance and repairs and interest paid on loans related to the property.

Are you looking to rent or flip?
Before you start looking at properties, you should decide on what you are going to do with the property once you attain it.

If you choose to buy, hold and rent it, take into consideration the responsibility it takes to be a landlord. You will need a lease agreement specifying what you will be responsible for maintaining, fixing, etc. and what the tenants will be responsible for like amount of rent, date of payments, leasing length, etc.

Becoming a landlord can turn into a very profitable venture if you make sure you are well-versed in property management, including fair housing laws and eviction and collection procedures. While you can self-manage, it may be wise to outsource this to a local experienced and qualified property management company. Either way, you must maintain the property to best preserve its value so it can eventually be sold at a significant profit.

If you choose to flip the property, you must take into account any and all property updates and repairs that need to be made. The term “flipping” means that you purchase a home, repair it and resell for profit. Both renting and flipping can be substantial financial investments, so make sure you have a reasonable budget in mind for the possible updates that will need to be made. Flipping a home can be considered less of a responsibility than becoming a landlord, but you must keep in mind that someone will be living in the home you are flipping and you want to make sure they will find it worth their money to purchase and move into. Consult your attorney and lender for restrictions on flipping. Keep in mind that flipping may not be the wise choice in a down housing economy.

How are your finances?
The better your credit, the more likely you will be able to get a decent loan. Since lenders know people are more likely to default on investment property, they usually require bigger down payments, higher interest rates and stronger finances for rental property investors. It will also be prudent to have a cash reserve left over after buying the property to put toward unexpected vacancies, maintenance and repairs. Typically the lender will require 20-25% down on an investor loan. In some instances a 10% down payment may suffice.

Additional considerations
-Location, location, location. If you decide on renting your investment property, make sure it is in an area where you can attract tenants. The same rules apply for finding a home to flip. When trying to sell a home, if it is located in a strong resale area, not only will you have a shorter hold time, but you will likely benefit from a greater return. Be sure to seek out a real estate agent that has experience advising investors not just owner-occupants.

-Timeline and budget. Having a reasonable, realistic timeline and budget for repairs will prepare you for success in your investment venture. Make sure to stick to the guidelines you set for yourself so you can end up with as much profit as possible and not overpay for your investment. Do not over-improve. This is not your personal residence. Only make improvements that will either make it more attractive to sell/rent, and/or will reduce your hold or vacancy time and ultimately show a return on your investment. There will always be unforeseen issues that may hold up construction or unexpected costs, but make allowances for such problems and you will stay on track.

Where can I find an affordable home to invest in?
With home prices at an all-time low, we are currently in a buyer’s market. There are many houses on the market being sold well below tax value that are just waiting to have a little TLC given to them to make them shine again. Seek out a real estate professional that specializes in real estate owned (REO), short sale and distressed properties and who also has experience working with investors.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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