Project Overview

The Revitalization of Downtown Kannapolis is underway. Kannapolis City Council members finalized the purchase agreements for properties located in the downtown area. The City has purchased land and buildings for $7,550,000 from Castle & Cooke, NC, LLC and Atlantic American Properties, Inc. These firms were owned by Mr. David Murdock. The City also purchased K-Town Furniture from the Uwharrie Bank for $875,000 and a house located at 206 S. Main Street house for $325,000.

The purchase includes properties located on Oak Avenue, West Avenue, S. Main Street and West First Street, including the former Cannon Village, the Gem Theatre, the current Kannapolis City Hall offices, Wells Fargo Bank, the current Kannapolis Police Department and the former Plant 4 site.

“Just like buying a personal home we submitted an initial purchase offer which allowed us time to officially analyze the assets we are buying, which properties to purchase, determine what renovations may be needed, how best to plan for the revitalized uses of the property, and negotiate the best price we could for the properties,” commented Mayor Darrell Hinnant. “It has been a long process but well worth the wait. We all know how much time it takes to buy one house. We have in essence bought many houses and it took time to complete the purchase.”

During the inspection and evaluation phases it was determined that the downtown properties were worth more than previously estimated. The properties have a total tax value of approximately $25 million. The City was able to negotiate with the owners of the properties and the final purchase price is $8,750,000 – an additional $2,000,000 increase above what the city originally expected to pay.

“While this is a significant investment for Kannapolis, City Council has concluded this is an opportunity we must make to ensure the long term economic vitality of our downtown core and entire city. We believe our strategic plan for revitalization will pay huge dividends for the entire city’s economic future,” commented Kannapolis Mayor Darrell Hinnant.

The City will pay for the purchase with bonds. The bonds will be paid back with a 3 cent property tax increase which is part of the 2015-2016 fiscal budget and the sale of the properties to developers. “The City does not want to be in the property management business any longer than we need to. The goal is to develop a good strategic plan and find private sector investors to sell or partner with,” Mike Legg continued. 

Strategic Planning Process Steps

The strategic planning process for the Revitalization of Downtown has six key components many of which are completed and are nearing completion as scheduled this summer:

Establishing goals for the Revitalization of Downtown - COMPLETED
Market Analysis – identifying types of uses for the downtown properties; amount of retail, residential, office space that new markets can support; what properties should be redeveloped first; study other cities which have revitalized their downtowns; analyze “game changers.” - COMPLETED
Site Analysis – condition of infrastructure, parking needs, traffic flow, green space, public amenities, height/size of buildings desired - COMPLETED

Public Process – the public will have the opportunity to weigh in on the results of the market and site analysis and offer their thoughts on the revitalization effort. – COMPLETED

Financial Analysis – what investment will developers/private partners bring to the table to participate in the new downtown; what uses will bring the most value and sustainability to the City overall and to the downtown core; and define the financial role of the City and other public and quasi-public entities. – UNDERWAY

Demonstration Project – identify a project which could be done first to maximize the excitement of revitalizing downtown and quick start other development projects. This is the VIDA MIxed Use District and includes hundreds of apartments and a public parking deck. - COMPLETED