The Kannapolis City Council received exciting news Monday night. Two experienced development firms have submitted proposals to invest significantly in the Demonstration Project.
The Demonstration Project would be one of the first steps in revitalizing downtown and would 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 would invest in purchasing the land from the City and constructing the structures.
Over the last two months the City has solicited proposals for the development. “There is significant interest in the development community for the revitalization project and we spoke with over 20 firms who wanted more information on the City’s master plan. We are pleased that two experienced firms, Lansing Melbourne Group (LMG) and Neyland Associates, submitted proposals and are ready to invest millions of dollars in our vision for revitalizing downtown Kannapolis,” said City Manager Mike Legg.
The developers, Lansing Melbourne Group (LMG) and Neyland Associates, have experience in designing and constructing mixed use and residential developments which is the goal for the City’s Demonstration Project. Lansing Melbourne Group (LMG) is based in Fort Lauderdale and has completed projects across the U.S. and Neyland Associates is based in Knoxville, Tennessee and has completed projects primarily in southeastern U.S. Both firms have completed projects in North Carolina.
A requirement of the solicitation of proposals included developers demonstrating a plan for building approximately 200 residential units (apartments-condominiums), retail space, and a parking deck for the four acre area between Main Street and West Avenue.
Both developers submitted their proposals based on the fact that the City has proposed anchors such as a sports and entertainment venue and a performing arts center in the Downtown Master Plan.
“With no investment in anchors that drive people to the downtown the developers would not be inclined to invest at this level in downtown,” further commented Legg.
LMG’s proposal includes 271 residential units; 83,000 square feet of retail space (19,800 new construction and 63,000 existing); 506 parking spaces and a 116 room hotel. LMG estimates their investment in the Demonstration Project would be $60.6 million. The City’s investment would be $12.6 million and includes a parking deck.
Neyland Associates proposes 252 residential units; 10-20,000 square feet of retail and 378-462 parking spaces. They propose investing $28.7M with the City’s investment at $5.7-6.9 million and includes a parking deck.
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 Property Annually Taxes for City: $381,780; County: $424,000
*They propose a 2nd phase across the street on West Avenue which would include additional retail, residential, parking, performing arts center, and public plaza.
Neyland Associates - Proposed Demonstration Project
Number of City Blocks: 2
Number of Acres: 4
Building Use: Residential, Retail, Restaurants
Ownership: City Will Sell Land to Developer - Project will be Privately Owned
City Investment: Parking Deck Construction - $5-7 Million potentially
Neyland Associates Investment in the Project: $28.7 million
Public to Private Investment Ratio: 1:4 to 1:5
Projected Property Annually Taxes for City: $180,810; County: $200,900
The next step in the process includes further due diligence of the proposals. Council is expected to select a development firm later this summer.
Neyland - Representative of work completed by the firm in another city. This is not a rendering of the project proposed in Kannapolis.
Lansing Melbourne Group - Rendering of Proposed Project