Development Authority Loses Money on Cryptocurrency Land Deal
The Habersham County Development Authority recently experienced a financial setback due to a land sale agreement. The property, known as Pad 10 in the Baldwin industrial park, was sold to Precision Digital for a high-performance computing facility, data center, and cryptocurrency mining operation.
Details of the Sale
- Property Sale Price: $172,350
- Total Project Cost: $353,607.75
- Additional Cost Incurred: $181,257.75
The Development Authority agreed to sell the 14.46-acre tract based on the buildable acreage, which amounted to 3.83 acres at a rate of $45,000 per acre. The final agreement was signed on August 31, 2023.
The Agreement Caveat
A significant part of the deal included the Development Authority's responsibility for rough grading the 3.83 acres and building a retention pond. This added extra costs to the Development Authority, further straining their budget.
Bidding Process and Project Cost
The project was put out for bidding in the summer. Four companies submitted their prices:
- International Waste Services, LLC: $579,000
- T. Frady Hauling, LLC: $361,265.08
- HD Construction: $353,607.75
- Square Deal: $330,495
Although Square Deal had the lowest bid, they were not selected due to their extended completion timeline, which pushed the project finish date to March 2024. The urgency of the project required a quicker turnaround.
Contractor Selection and Project Management
HD Construction from Lincolnton, GA, was awarded the contract at a price of $353,607.75 with a 90-day completion window. They were given the green light to start on October 3, 2023.
Jerry Baggett, the Public Works Director, was appointed as the project liaison, while Charlie Fiveash, the Economic Development Director, assisted where needed.
Financial Impact
Habersham County Chief Financial Officer Tim Sims confirmed the final project cost was $353,607.75. He clarified that these funds came from the Development Authority account and not from county funds, ensuring there's no direct impact on the county's budget.
In summary, while the sale of Pad 10 aimed to foster new technological ventures in the area, the unexpected high project costs led to a substantial financial loss for the Development Authority.
