Title
Eastland Redevelopment Sports and Entertainment Development Agreement
Action
Action:
A. Authorize the City Manager, or his designee, to negotiate and execute a master development agreement with the sports complex team (Developer) setting forth the general terms and conditions of the city and Developer’s partnership,
B. Authorize the City Manager, or his designee, to negotiate and execute an agreement for the reimbursement of costs for public infrastructure in an amount not to exceed $18.994 million, which represents an additional $8.994 million from previous City Council approval, which is expected to be reimbursed to the Developer in full by the 2024 Bond Referendum or split between the 2024 and 2026 Bond Referendums or in a combination of payments from other municipal sources of funding,
C. Authorize the City Manager, or his designee, to negotiate and execute agreements for the reimbursement of costs for expenses associated with indoor and outdoor amateur sports facilities and other public improvements in an amount not to exceed $22.334 million, which represents an additional $2.344 million from previous City Council approval, to be supported by the Convention Center Tax Fund, and
D. Authorize the City Manager, or his designee, to negotiate and execute any further ancillary instruments or non-material changes to the agreements as may be necessary.
Body
Committee Chair:
Malcom Graham, Jobs and Economic Development
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Todd DeLong, Economic Development
Explanation
§ The Jobs and Economic Development Committee referred to full Council the discussion on two proposals to redevelop 29 acres of city-owned property, the eastern portion of the former Eastland Mall site. The Committee ranked QC East @ Eastland Yards as the top proposal followed by Eastland Yards Indoor Sports Complex.
§ On June 12, 2023, City Council adopted a resolution to allocate up to $10 million from the General Capital Investment Plan to support the completion of public infrastructure and reserve up to $20 million supported by the Convention Center Tax Fund to support the support the redevelopment of the eastern 29-acre Eastland site owned by the city.
§ During the August 28, 2023, City Council business meeting, City Council directed staff to reconvene the two proposing development teams to determine if they can collaborate on a vision that rethinks the design, scale and scope for amateur sports, arts, and culture at Eastland consisting of a minimum of these components: indoor facility, soccer fields, e-sports, food, and retail, and such a vision that will be available for the full City Council review within 45 days.
§ On October 9, 2023, City Council approved up to $30 million for reimbursement of expenses associated with public infrastructure and the indoor/outdoor amateur sports facilities. During the December 11, 2023, City Council meeting, staff provided an update that included the need for additional analysis to gain more clarity on the scope of work and costs required the implement the proposed redevelopment.
§ On September 3, 2024, staff presented an update to the Jobs and Economic Development Committee, detailing the findings from the merged team’s additional analyses. These analyses revealed that the added strain on the site leads to increased infrastructure and site work costs, compounded by price escalation and soft costs. The Committee voted unanimously to recommend approval by City Council on September 9, 2024.
§ This project may require future Council actions as required for approval by the Local Government Commission.
Background
§ The city purchased approximately 80.4 acres of the former Eastland Mall property in August 2012 as an opportunity to aid economic development and neighborhood revitalization in the area. Eastland Mall was demolished in 2013.
§ The redevelopment principles created by the Eastland Area Strategies Team help guide the redevelopment of the site to:
- Enhance the perceptions of the Eastland area and East Charlotte,
- Unify local communities,
- Create connectivity and walkability for surrounding neighborhoods,
- Take advantage of natural features,
- Create opportunity for civic development, and
- Increase equitable economic development opportunities.
§ From 2017 to 2018, the Economic Development Committee, now known as the Jobs and Economic Development Committee, reviewed proposals from four development teams and voted unanimously to engage exclusively with the development team led by Crosland Southeast LLC (CSE).
§ Throughout 2019, the city partnered with CSE to lead a robust and broad outreach effort for more inclusive community engagement.
§ On November 9, 2020, City Council authorized the City Manager to negotiate and execute a Master Development Agreement and other necessary agreements for the reimbursement of costs for public infrastructure, public parking, and other public improvements.
§ On August 3, 2022, the city and CSE held a groundbreaking ceremony on the site to initiate site work and infrastructure construction.
§ CSE acquired the first parcel in May 2023 to develop a senior affordable housing development.
§ CSE acquired the second parcel in December 2023 to develop two mixed-use buildings totaling 275 multi-family units, 16,000 square feet of commercial space, and a 157-space public parking garage.
§ CSE acquired an additional 6.3 acres in August 2024 to partner with a home builder to develop the first phase of single-family and townhome units.
Fiscal Note
Funding: General Capital Investment Plan and Convention Center Tax Fund, or Other Municipal Funding Sources