City eyes downtown venture
By Rochelle Moore
Published in News on November 20, 2017 5:50 AM
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News-Argus/CASEY MOZINGO
Pictured is a portion of East Walnut Street, from 206 to 200, that is part of a group of properties planned for development as a result of a potential $11 million mixed-use project. The properties will include both commercial and residential spaces.
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News-Argus/CASEY MOZINGO
The spaces above several pieces of property along Walnut Street are projected to become business space, like 204 E. Walnut St., pictured, and will offer apartments above.
The Goldsboro City Council is set to consider an economic incentive package today that could lead to a near $11 million investment in downtown Goldsboro.
An undisclosed developer, with proven experience in rehabilitating historic properties, is interested in restoring six properties that will offer 55 market-rate apartments and 12,000 square feet of commercial space. In total, 68,000 square feet of space is planned for historic rehabilitation and reuse, which is promised to boost city and county property tax revenues in future years.
"It is a company that has definitely had a lot of experience in historic rehabilitation," said Julie Metz, Goldsboro downtown development director.
The mixed-used project is planned at 200, 204 and 206 East Walnut St., 106 S. John St., 135 and 139 West Walnut St., all within the Goldsboro Historic District.
The six properties currently provide a total of $3,784 in annual property taxes to the city, county and the downtown municipal service district. In 10 years, the city and county will be able to collect an estimated $54,200 in annual tax revenue.
The council will hold a public hearing during its Monday meeting, at 7 p.m. in City Hall, 214 N. Center St., which allows the public to voice their views about the incentive package.
Property tax incentives are being offered by the city of Goldsboro and Wayne County as part of the Economic Development Historical Preservation and Urban Redevelopment Agreement with the developer.
If approved, the developer will receive property tax incentives for 10 years. The city also proposes to provide a $300,000 loan for building facade improvements.
The property tax incentives will be provided at varying levels for 10 years. The percent of property taxes that will be granted back to the developer are 90 percent during the first five years, 75 percent for year six, 60 percent for year seven, 45 percent for year eight, 30 percent for year nine and 15 percent during the 10th year. The incentive involves city and county property taxes and not taxes collected within the municipal service district in downtown Goldsboro.
According to a summary of the agreement, the total amount that will be awarded to the developer during the 10-year period will not exceed $310,314.
The mixed-use project is expected to include a $10.7 million investment, including $7.9 million in direct building improvements. If the developer fails to invest $7.9 million in the project by May 2020, the city and county will not be required to pay the tax incentives.
The project has been nearly 10 months in the making, Metz said.
The buildings will be completed in accordance with the Department of the Interior's Standards for Historic Preservation. The timeline for the rehabilitation work includes completion by April 2020.
The project is contingent on the continuation of the federal historic tax credit program, which has come under question during federal budget negotiations.
The Wayne County commissioners will also consider the incentive agreement this week.
In other business, the council today will consider a $671,350 contract with Daniels and Daniels Construction to build a 4,800-square-foot concessions stand and restroom facility at the new multisport complex on Oak Forest Road.
Also, a $105,080 contract with Barnhill Contracting Co. to add a greenway trail behind Wayne Community College and Wayne UNC Health Care.
The 5,805-linear-foot gravel trail will intersect with the multiuse path along New Hope Road and will extend behind the college and hospital where it will end behind the hospital, said Randy Guthrie, assistant city manager. The greenway path will cost $93,530 and be paid for with grant funds.
The contract also includes the paving of the parking lot at Mina Weil Park, at a $11,500 cost, also paid for through grant funding, Guthrie said.
In other business, the council will:
* Consider providing a $5,000 grant toward the Civil War living history weekend, planned April 6-8, for the 135th U.S. Colored Troop. The funding will come from the city's fund balance reserves.
* Consider increasing the cost of compost to $9 per cubic yard for quantities over 20 cubic yards; $15 per cubic yard for bulk compost; and $6 per cubic yard for mulch.