The Kannapolis City Council will consider a redevelopment proposal and the sale of the Downtown Phase One Block One properties on Monday night.
Phase One of Block One includes eleven buildings in the heart of downtown on West Avenue. The buildings, which date from the 1930-50s, are located around the corner from the Gem Theatre, across from the entrance to the Sports and Entertainment Venue, and two blocks north of the VIDA Mixed Use District.
The buildings have prime commercial footage and are considered to be some of the most valuable and historic pieces of property in Kannapolis. They are located at 101, 103, 105, 111, 109, 113, 115 and 119 West Avenue as well as 112, 114, and 116 W. A Street.
Earlier this year the City solicited for development partners for this block. Two proposals were received. After evaluating the proposals and conducting due diligence, City staff and the City’s downtown revitalization advisors at the Development Finance Initiative, will recommend to City Council the selection of Lansing Melbourne Group (LMG) as the developer of the block.
LMG will buy Phase One of Block One for $450,000 and invest an additional $2.6 million to renovate the commercial spaces. LMG is also the developer of VIDA, a mixed use district under construction on West Avenue.
This group of properties on Block One includes a former restaurant space that is move-in ready and other spaces which will need improvements. The properties are in a designated Opportunity Zone and the City is in the process of applying for historic district designation – which could give developers the potential to use these tax credits as financing tools.
The remainder of the block, which contains properties on N. Main Street and West A Street, and Block Two (south of Block One on West Avenue) will be sold in a phased approach in the future as to not oversaturate the real estate market too quickly. The City will retain ownership of the Gem Theatre and its adjacent buildings along First Street.
Kannapolis Downtown Revitalization Project:
The City of Kannapolis is investing $113 million in three catalyst projects to revitalize downtown. The projects include the recently opened West Avenue Streetscape, the Sports and Entertainment Venue (the new home of the Kannapolis Cannon Ballers Minor League Baseball Team) and a public parking deck in the VIDA Mixed Use District. Construction on the $60 million VIDA development is well underway and it is expected to open in early 2021. The Sports and Entertainment Venue will open in April 2020 for the new baseball season.
For more information on the City of Kannapolis and the Downtown Revitalization Project visit kannapolisnc.gov/revitalization.