Charleston city officials are reevaluating their options for affordable housing development following a stalled agreement with Charleston County. Mayor William Cogswell announced at a City Council meeting on December 2, 2023, that the city is negotiating to purchase the International Longshoreman’s Association (ILA) pension and welfare fund building on Morrison Drive for $18 million. This comes after discussions to acquire two larger county-owned properties faltered.
During the meeting, the City Council voted to reopen negotiations with Charleston County regarding the two parcels located at the intersection of Morrison and Huger Street. These parcels measure approximately 6 acres, significantly larger than the ILA property, which spans 2.5 acres. The larger county sites could accommodate about 800 units, with half designated as affordable housing, compared to the 200 units possible on the ILA site.
This decision is part of Cogswell’s broader initiative to create 3,500 new affordable housing units by 2032. Both potential sites are intended to house tenants from nearby properties managed by the Charleston Housing Authority during their redevelopment, an essential aspect of the city’s housing strategy.
Despite the larger size of the county properties, the ILA site presents a more immediate financial challenge. The city had agreed to pay $30 million for the county’s parcels, but a recent appraisal suggested the county lands were valued at around $23 million, while the county’s own appraisal came in at approximately $34.5 million. Although the county indicated a willingness to proceed with the original agreement, Cogswell aimed to negotiate the price down to $27 million to align more closely with the city’s appraisal.
On November 20, a City Council committee recommended terminating the purchase agreement with the county due to the pricing impasse. In the wake of this recommendation, Cogswell proposed two options: either proceed with the county purchase at the reduced price or terminate the contract and proceed with acquiring the ILA property. The latter option includes a collaborative commitment for the city to work with the county on rezoning and planning for future affordable housing development on the county land.
City Councilman Keith Waring expressed optimism about the potential for a “win-win” scenario, where affordable housing could be developed on both properties. Regardless of which entity builds the units—be it the city, the county, or a private developer—these projects would contribute to the city’s ambitious housing goal.
Affordable housing units are designated for households earning less than 120 percent of the area median income, which for the tri-county area is approximately $110,900, as defined by the U.S. Department of Housing and Urban Development.
City Council members have instructed Cogswell to continue negotiations with both the ILA and the county and provide an update at the next meeting scheduled for December 16, 2023. A decision on the acquisition of land is anticipated at that time. The ILA building, located at 899 Morrison Drive, is a few blocks away from a former union hall recently sold for $24.5 million to a West Coast real estate developer.
