Council approves developer progress
By Rochelle Moore
Published in News on June 8, 2016 1:46 PM
A Virginia-based developer cleared the first hurdle Monday in an effort to pursue a multimillion-dollar residential and commercial property in downtown Goldsboro.
The Goldsboro City Council voted to allow the city manager to enter into a purchase contract with Second Act Communities, which offered the city $250,000 for 207 and 219 S. Center St.
Second Act, a nonprofit based in Virginia Beach, Va., is interested in developing a new multi-story building where commercial tenant spaces would be mixed with market-rate apartments.
The project could become one of the largest city officials have seen in nearly 20 years, said Julie Metz, director of the Downtown Goldsboro Development Corp.
Kaye Scott, Goldsboro's finance director, told the council during a Monday work session that a purchase contract would be drafted, following an estimated nine month feasibility study, requested by Second Act Communities.
"Second Act Communities' letter of intent identifies that before they enter into a contract, they will need to do a feasibility study, which is expected to take nine months," Scott said. "The closing is expected to take 60 days, after the expiration of the feasibility study."
City officials will also be involved in decisions regarding the development of the property. The city's regulatory and decision-making role offers city officials the option to back out of the agreement, and Second Act has the option to back out, if the feasibility study shows the project will not financially work, said Scott Stevens, city manager.
"It would give them time to go through the feasibility study and time for us, if we like the project, to recommend it upon sale," Stevens said. "If we didn't like it, we'd have an out as well."
Mayor Pro-Tem Gene Aycock asked the city manager if Second Act Communities would pay property taxes. He also asked if there was an estimated project investment.
The project estimate is close to $15 million, based on earlier discussions and proposed building uses, Stevens said. The manager also said taxes would be paid on the property.