Board outlines Fort McPherson deal; munitions remediation to affect $10 million of Tyler Perry’s payments

By David Pendered

The board overseeing the redevelopment of Fort McPherson offered an olive branch to the residents of the adjacent community Monday. The reception was chilly, at best.

A state authority has scarcely mentioned the status of environmental remediation at Fort McPherson. Here, Clayton County Sheriff's Capt. David A. Bell, who teaches special weapons and tactics, practiced at Fort McPherson in 2008 with a .40-caliber Glock pistol. Credit: army.mil

A state authority has scarcely mentioned the status of environmental remediation at Fort McPherson, though it will affect Tyler Perry’s planned payment schedule. Here, Clayton County Sheriff’s Capt. David A. Bell, an instructor of special weapons and tactics, practiced at Fort McPherson in 2008 with a .40-caliber Glock pistol. Credit: army.mil

“What is being done really doesn’t pass the smell test,” said West End resident Kay Wallace. “Come on, guys. We deserve better and you’ve got to give us better.”

One issue that was barely mentioned in a long-awaited presentation on the pending deal to sell most of the fort to filmmaker Tyler Perry is the status of fort’s environmental clean-up. A portion of Perry’s payments will be collected based on when the Army remediates the property and turns it over for civilian use, according to a lawyer for the board.

Wallace’s comment was a representative response after the board’s 80-minute presentation on the subject of how Perry has come to be the prospective buyer of most of Fort McPherson – 325 acres for $30 million.

Some residents have complained loudly that the fate of the fort is too significant for their southwest Atlanta neighborhood to be negotiated behind closed doors. For example, the deal with Perry began in February, but became public only when Atlanta Mayor Kasim Reed announced it in June.

Felker Ward promised at the outset of Monday’s meeting that the board intended to be as transparent as possible in describing the tentative land deal. Ward chairs the board of the McPherson Implementing Redevelopment Authority, which was created by the state to oversee the fort’s conversion to civilian use.

“I think you’ll appreciate the visibility this will give you,” Ward said. “You’ll understand what is driving our decisions.”

The closest the MILRA board came to mentioning the remediation issue involved the timing of Perry’s payments for property. Some residents have questioned whether Perry’s planned studio’s can be built under the terms of an environmental impact statement prepared for a previous redevelopment plan.

The Army will turn over portions of the property at various times in the future, following the completion of environmental remediation. As Perry receives those portions, MILRA will tap a $10 million letter of credit Perry is to provide, according to Ken Neighbors, a lawyer working on MILRA’s behalf.

Darlene Hawksley, MILRA's director of real estate, discusses the proposed redevelopment of Fort McPherson with area residents at a Monday meeting. Credit: David Pendered

Darlene Hawksley (right), MILRA’s director of real estate, discusses the proposed redevelopment of Fort McPherson with area residents at a Monday meeting. Credit: David Pendered

Incidentally, the military initially estimated the cost of environmental restoration would be $8.9 million. By 2003, $11.1 million had been spent, according to the latest report available online from the Department of Defense.

More than 200 chemicals are associated with military munitions, including lead, trinitrotoluene (TNT) and perchlorate, which the Government Accounting Office has stated, “may cause various health effects, including cancer.” Fort McPherson had four operational ranges and two small arms ranges, according to a DOD report.

Ward led a presentation that resembled an executive summary of the legal steps taken to enable the state to buy the fort from the Army. The goal was to get the property at a cost lower than the market value. Other mechanics of the transfer of property from the Army to the state were outlined.

Before Monday, the board had insisted to residents that it could not reveal details of the proposed transaction with Perry. Georgia law does provide governments with considerable leeway in conducting real estate transactions in private, for the purpose of preventing speculators from jumping into a deal and driving up prices to be paid by taxpayers.

“I know there’s been some frustration on your part, that we’ve not been able to open up all those details,” Ward said. “I can assure you we’d never get there if we had to do [the transaction in public]. On one hand, we were negotiating with the Army to buy and set up a payment schedule, and simultaneously deal with Tyler Perry.”

Ward, Neighbors, and outgoing MILRA Executive Director Jack Sprott delivered a presentation that sets out the following terms:

  • Felker Ward (right), who chairs the McPherson Implementing Local Redevelopment Authority, led a detailed presentation of the pending deal with filmmaker Tyler Perry. File/Credit: Donita Pendered

    Felker Ward (right), who chairs the McPherson Implementing Local Redevelopment Authority, led a detailed presentation of the pending deal with filmmaker Tyler Perry. File/Credit: Donita Pendered

    The Army will sell the fort to MILRA for $26 million;

  • Perry will pay MILRA $20 million in cash when he closes on 325 acres (the size of Perry’s purchase previously was described as 330 acres);
  • Perry will provide MILRA a $10 million letter of credit when he closes, which will be drawn on over a number of years as the Army completes its remediation of the former military installation and turns over those sites to MILRA;
  • MILRA will pay the Army $13 million of the first $20 million received from Perry;
  • The remaining $7 million will be invested according to state law;
  • Any earnings MILRA receives in the first seven years must be invested in the fort;
  • MILRA will pay the Army the final installment, of $13 million, in either three years or four years (both durations were cited at various points in the meeting);
  • MILRA will retain 147 acres, some of which will be converted to greenspace.
  • The Army wants to close the deal by Oct. 19.

As Ward wrapped up the board’s presentation, he said:

“Our intent is to answer a whole lot of questions. You now know just about all that we know. You’ve heard both sides of the transaction, what they consist of, and a time frame.”

Ward concluded by saying the board’s next meeting, on Sept. 16, is to convene at 6 p.m. Some residents have asked that MILRA meet at night so that people who work during the day have an opportunity to attend. In addition, the board will host a reception at the meeting to recognize Sprott, who was MILRA’s first executive director.

David Pendered, Managing Editor, is an Atlanta journalist with more than 30 years experience reporting on the region’s urban affairs, from Atlanta City Hall to the state Capitol. Since 2008, he has written for print and digital publications, and advised on media and governmental affairs. Previously, he spent more than 26 years with The Atlanta Journal-Constitution and won awards for his coverage of schools and urban development. David graduated from North Carolina State University and was a Western Knight Center Fellow. David was born in Pennsylvania, grew up in North Carolina and is married to a fifth-generation Atlantan.

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