**Cryptocurrency Land Deal Yields Loss for Habersham County**
Background
The Habersham County Development Authority embarked on a cryptocurrency land deal in Baldwin’s industrial park, hoping to attract investment and bolster the local economy. However, the deal has turned out to be a financial setback for the county.
Terms of the Agreement
The Authority sold “Pad 10” to Precision Digital in 2023. The company planned to use the land for high-performance computing, data center operations, and cryptocurrency mining.
The property’s price was based on its buildable acreage, which was determined to be 3.83 acres at $45,000 per acre. The Authority sold the property for $172,350, brokered by Wade Rhodes of the Norton Agency.
Hidden Costs
However, the agreement included a caveat: the Authority would bear the costs of grading the land and building a retention pond. This unexpected expense proved to be substantial.
The county sought bids for the project and ultimately awarded the contract to HD Construction for $353,607.75.
Financial Loss
Adding the purchase price of the land to the grading and pond construction costs, the Development Authority spent a total of $525,057.75. This exceeded the $172,350 received from the land sale, resulting in a loss of $181,257.75.
Reasons for the Loss
The Authority attributed the loss to the high cost of grading the land. Additionally, the bidding process did not yield the lowest bid due to time constraints.
Impact on the County
The financial loss from the land deal has put a strain on the Development Authority’s resources. The Authority’s hope to attract investment and stimulate economic growth in Habersham County has been dampened.
Lessons Learned
The Habersham County experience highlights the importance of carefully considering the financial implications of land deals, especially when involving cryptocurrency ventures. The Authority could have potentially negotiated a more favorable agreement with Precision Digital or budgeted more funds for the grading and pond construction.