Title
Garrison Road South Infrastructure Reimbursement Agreement
Action
Action:
A. Authorize the City Manager to negotiate and execute an infrastructure reimbursement agreement with McCraney Property Company in an amount not to exceed $8,500,000 for municipal infrastructure improvements, and
B. Adopt a budget ordinance transferring $1,509,716 of capital project savings for the Garrison Road South project in the General Capital Projects Fund.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Lilias Folkes John, Economic Development
Explanation
§ The McCraney Property Company is a private development site located in the Dixie Berryhill area adjacent to Council District 3.
§ City Council approved the rezoning for this redevelopment on February 15, 2021, which includes 1.2 million square feet of new industrial development with strong environmental commitments.
§ McCraney Property Company (the Developer) plans to redevelop approximately 150 acres on the east and west side of Garrison Road through two phases.
§ The total estimated private investment related to phase one and two roadway improvements is approximately $95 million.
§ It is often advantageous for the City to have a developer construct certain infrastructure improvements that directly benefit the City and the developer. In such instances, the City enters into reimbursement agreements with developers to construct the improvements.
§ Under the terms of this agreement, the Developer would build the municipal infrastructure improvements and be reimbursed upon completion.
§ Municipal infrastructure improvements include design and construction of a new north-south connector road between Horton Road and Dixie River Road with a crossing over Beaver Dam Creek and right-of-way dedication to the City.
§ Construction of the municipal infrastructure improvements may be completed in two phases as defined by rezoning petition 2019-173.
§ Reimbursement for both phases is contingent upon the Developer’s successful dedication and conveyance of right-of-way to the City.
§ The phase one reimbursement is also contingent on support and approval from the Mecklenburg County Board of County Commissioners and the State of North Carolina’s Department of Environmental Quality.
§ These improvements will provide roadway capacity, maximize network connections and traffic mitigation, and increase economic development.
Background
§ On August 23, 2021, City Council approved an amendment to a previously-approved infrastructure reimbursement agreement for the construction of West Boulevard in the Dixie Berryhill area. The amendment totaled $1,529,716 to fund the design and construction of additional improvements required by the North Carolina Department of Transportation (NCDOT) to increase connectivity.
§ Due to the cost of the additional NCDOT requirements for the West Boulevard infrastructure reimbursement agreement, $1,509,716 of previously-approved 2016 General Obligation Bond savings is being transferred to the Garrison Road South infrastructure reimbursement agreement for a total of $8,500,000.
§ The $1,509,716 of savings is from the previously approved South End Pedestrian and Bicycle Connector project which is no longer needed. CATS, through a public-private partnership, plans to construct a new LYNX Blue Line light rail station in the vicinity, which will accomplish all of the South End Pedestrian and Bicycle Connector project goals. City Council approved Engineering Services for the new South End Station on September 13, 2021.
Charlotte Business INClusion
Prior to the City Manager executing the infrastructure reimbursement agreement, Charlotte Business INClusion will work with the Developer to negotiate and incorporate an approved MWSBE participation plan with subcontracting goals on all work tied to all phases of the agreement. (Part G, Section 2.6 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: General Capital Investment Plan
Attachments
Attachment(s)
Map
Budget Ordinance
February 15, 2021 Approved Zoning Ordinance