City & LMG Reach Agreement on Downtown Demonstration Project
On January 23, the Kannapolis City Council and Lansing Melbourne Group (LMG) formally agreed on the terms for the purchase of land and the specific components of the Demonstration Project.
The Demonstration Project will be a mixed use development of multi-story residential, retail and parking between Main Street and West Avenue. This project is intended to generate momentum for new investment in downtown Kannapolis.
The City Council approved a Master Development Agreement which includes design, finance, construction, ownership and operations for the project. LMG will purchase 3.81 acres for the appraised price of $1,640,000 and spend approximately $60 million to construct residential units, a hotel and retail space. The investment of $60 million will result in projected annual property taxes to be paid to City in the amount of $378,000 and to the County: $420,000.
LMG will build the Demonstration Project in two phases. The first phase includes 275 residential units, 19,000 square feet of new retail space and 34,000 square feet of renovated retail space in the existing block that includes the old Cabarrus Bank. The second phase includes a 106 room hotel or additional residential units depending on market demand.
The City will invest $12 million for a parking deck which LMG will construct. LMG will lease 275 of the parking spaces, from the City for $50 a month per space, for use by people living in the residential units. The City will issue bonds to pay for the cost of the parking deck. Three buildings will have to be demolished for the project – including the former N.C. State Employees Credit Union and Transit Damaged Furniture. The City is working with current tenants in downtown who will be impacted to determine their future plans.
Demolition of buildings and construction of the first phase of the project is expected to begin by Fall of 2017 after closing of the land sale is finalized. Work on the downtown infrastructure and new streetscape will also begin at the same time.
Lansing Melbourne Group (LMG) is based in Fort Lauderdale and has completed projects across the United States including Hyatt hotels, Verizon and Hewlett Packard facilities.
“We are excited about the Kannapolis Downtown Revitalization Project and grateful to be a partner in the renaissance of the City. With this formal vote tonight we will begin moving forward with final design planning tomorrow morning,” said Peter Flotz, LMG Management Partner.
“This agreement moves us one step closer to realizing the full potential of our downtown core. Over the next few months we will finalize all of the design and engineering plans and be ready for construction this Fall,” commented Mayor Darrell Hinnant.