Parkside backs out of deal to redevelop old courthouse building

The old Clarkesville courthouse, opened in 1964, has sat empty for years. (Margie Williamson/NowHabersham.com)

The old courthouse building in Clarkesville will remain vacant after commercial real estate firm Parkside Partners terminated an agreement to redevelop the structure Monday.

County spokesperson Rob Moore said in a news release that attorneys for Parkside notified the Development Authority of Habersham County on Monday, September 30, of the firm’s decision to cease a memorandum of understanding that had been in effect since May 31.

Clarkesville City Manager Keith Dickerson said the city as a whole was “disappointed” that the deal failed.

“We’ll just try and stay positive and figure out where this heads and what we’re going to do to move forward,” Dickerson said. “We’re disappointed it’s not going through after this long of a period of time, but I’m sure (Parkside) has their reasons.

“Something needs to happen,” he added. “I think I said at the beginning, ‘How many times have we done this?’ And here we are doing it again.”

Habersham County Commission Chairman Ty Akins told Now Habersham that Parkside’s decision caught county officials by surprise.

“We weren’t really given any questions or comments or information that led us to believe they were ready to walk out, especially at the last minute,” Akins said.

Future of the courthouse

The future of the former courthouse is now mired by uncertainty.

Since the announcement Tuesday afternoon, Akins went on to say that he’d be inclined to favor demolition of the structure.

Before the recent MOU with Parkside Partners, a previous option for the fate of the former courthouse had Habersham’s Development Authority and the city of Clarkesville each allocating $250,000 for demolition of the structure. That sum, as proposed, could then be recouped with interest upon the sale of the property to a potential investor.

“I would think that we might give it a week or so, just to see what happens,” Akins said. “But if I had to guess, (demolition) would be the next likely step.”

Under the MOU, Parkside Partners would’ve purchased the old courthouse and surrounding 2.07 acres for $500,000 with plans to repurpose the building for 21 luxury residential and condominium-style units that would overlook the downtown square.

With the deal now dead, Parkside has also requested the release of more than $200,000 in earnest money “due to unsatisfactory title conditions,” according to Moore. That request is now under review by legal counsel.

“Parkside unilaterally terminated the memorandum of understanding that would have led to the sale of the old courthouse,” Habersham County Development Authority Chairman Jim Butterworth said Tuesday. “We look forward to finding out their concerns as we move forward.”

As a message to the public, the news release from Moore stressed that: “There were no concessions and no tax incentives in the deal, and the gazebo, Habersham County Killed in Action Memorial (also known as the Habersham County Veterans Memorial), and the Habersham County Agriculture Services Building were remaining under county ownership, with ample parking for offices and 4-H programs contained in that building.”

Habersham County Manager Alicia Vaughn said all parties were in agreement and had approved a 15-day extension of due diligence before Parkside ended the deal.
“I am proud of the collaboration between the county/development authority and the city of Clarkesville,” Vaughn said. “We are disappointed but will move forward and continue to work together as we determine next steps.”