City Selects LMG as Demonstration Project Developer > City of Kannapolis | City of Kannapolis

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Monday night, the Kannapolis City Council selected Lansing Melbourne Group (LMG) for the development of a mixed use district known as the Demonstration Project. LMG proposes investing over $60 million in the project.

City Council met with members of LMG and voted to establish a memorandum of understanding (MOU) with the firm for the development of the project. Staff will now negotiate with the company on a Master Development Agreement, which will establish more details regarding the design, finance, construction, ownership and operations of the Demonstration Project. It is expected that the Master Development Agreement will be completed by this December.

The Demonstration Project is one of the first steps in revitalizing downtown and will include multi-story residential, retail and parking development between Main Street and West Avenue. This project is expected to generate momentum and enthusiasm in downtown Kannapolis. The City will make an investment in the parking structure while the developer will invest in purchasing the land from the City and constructing the other buildings.

Lansing Melbourne Group (LMG) is based in Fort Lauderdale and has completed projects across the United States including Hyatt hotels, Verizon and Hewitt Packard facilities. LMG’s management team, Peter Flotz and Kent Gregory, introduced themselves to City Council and elaborated on why they want to invest in Kannapolis.

“This is a once in a lifetime project. We like working with government and we believe we can make a difference and create a special place with this project in Kannapolis, “ said Flotz.

LMG’s management team also includes Bob Bistry who will be the architect for this project. They plan to use local firms for construction while using their management team to lead the process. Construction is anticipated to begin in the summer of 2017 with the entire project taking five years to complete.

LMG - Proposed Demonstration Project
Number of City Blocks: 2
Number of Acres: 4
Building Use: Residential, Retail, Restaurants, Hotel
Ownership: City Will Sell Land to Developer - Project will be Privately Owned
City Investment: Parking Deck Construction - $12.6 million potentially
LMG Investment in Project: $60.6 Million
Public to Private Investment Ratio: 1:5
Projected Annual Property Taxes To Be Paid To City: $381,780; County: $424,000