Please have a seat and we'll get going.

Let me get fellow loads.

All right.

Y'all give me okay, got it.

It's been two months since we've done this.

I've forgotten what we're supposed to be doing here.

Okay.

This is the August Finance Committee meeting.

Uh if the city clerk will please call the roll.

Chairman, Councilmember Clark.

Here.

Mayor Pratim Adams.

Here.

Councilmember Scipio.

Here.

Councilmember Taylor.

President.

Thank you, everybody for being here.

And we have not as popular as we thought.

No visitors today.

The mayor is here.

He doesn't count, but he's here.

We'll start with a consent agenda.

Anybody have anything they want to pull off consent?

I'm not hearing any.

I move for approval of the consent agenda.

We have a motion to have a second, please.

Second.

All in favor say aye.

Aye.

Any opposed?

That is approved.

So the consent is done.

All right.

Item G1.

You can stay if you want.

I was going to say wait a minute.

We got cookies.

I think we had the plague.

Okay, we will now go to G1.

City Clerk, please read G1.

Item G1, consideration of items related to North Carolina major events, games, and attractions fund.

Mr.

Rao, you have the floor.

Ben, go ahead.

Good afternoon, Chairman Clark, Mayor Joins, Mayor Pro Tempori Adams, members of council.

So on July 9th, uh NASCAR announced that they were going to bring back the cookout clash to Bowman Gray Stadium for the two to kick off the 2026 season on February 1st, 2026.

NASCAR along with the city submitted a joint application to the State Department of Commerce for another major events, games, and attractions fund grant.

And they received word on July 18th that they have been awarded the grant that would reimburse uh NASCAR for up to 50 percent of the qualifying expenses for uh the 2026 clash up to 1.6 million dollars.

Uh if you recall they submitted an application, it was actually the first ever uh grant application under this fund uh for the 2025 clash and received a two million dollar grant uh for for this past February's event, and that covered about 80 percent of qualifying expenses.

So very excited about about this opportunity and about the partnership with NASCAR.

So the item before you this evening is basically a resolution authorizing the city to serve as the pass through for those funds.

We have to be local entity for that.

And there's also a budget amendment that would appropriate the funds uh so that we can actually uh pass those funds along to to NASCAR when they submit uh the documentation for their qualifying expenses.

You have a date on when that's gonna be next year.

For the uh the clash itself will be on February 1st, 2026.

Uh that's a Sunday, the day before.

They'll they're gonna do the same Madhouse uh classic with the modified series.

Uh so that'll be January 31st, 2026.

Any questions?

I'll move for approval of item G1.

Second.

We have a motion second to approve item G1, and I think we're gonna vote electronically here.

Maybe everybody please vote.

That is approved.

Thank you very much.

We will now go to G2.

Item G2, consideration of items related to award of a grant from the North Carolina Land and Water Trust Fund for the grounds project.

Mr.

Millett, you want to talk about this one?

Yes, sir.

Uh good afternoon, Chairman Clark, Mayor Joins, Mayor Pro Tim Adams, and members of council.

The North Carolina Land and Water Fund awarded the city a grant of 787,662 designated for stream restoration as part of a 2,150 foot linear foot stream associated with the grounds project.

Uh it's a tributary along Silas Creek.

This grant does not require a city match.

So in addition to restoring the natural hydrology of the stream, it's going to provide a natural amenity and community focal point for the grounds.

Um the grounds, of course, is the adjacent mixed use development by Carter and Front Street.

The resolution does a couple of things.

And this is Silas Creek, not Saddle's Creek Parkway.

That is correct.

Yes, sir.

It is the actual creek.

This is a creek you can see from the parking lot.

Yes.

Yes, ma'am.

Yes, thank you, Mr.

Millie.

Could we have the slide up that shows uh the scoop at the grounds?

The scope.

Is that supposed to be scope or scoop?

Does it say scoop?

S C O O O P Scoop.

That's uh I I've heard it both ways.

Okay.

Can we pull that up, please, as part of the uh the agenda item.

It is the scoop.

That's what it's at a restaurant.

It's exhibit A.

Yeah, we got it.

There we go.

I just wanted to say that uh over the years that I've my family and I have lived on this side of town near here.

That uh I always and and Councilmember Taylor would tell you, I've always been a little jealous of the East Ward and the uh Southeast Ward, because uh you guys got water.

You got Winston Lake and you got Salem Lake, and I don't have nothing.

And I always felt like I wanted a water feature, especially after going to Durham and at the tobacco buildings where the D Pack is and everything.

I saw what the potential was of any city that could boast having water features throughout their city.

Uh as we all know, Winston Salem is built on uh the Moravians uh was smart.

Uh they built the city on a bunch of tributaries and water.

Uh growing up, we knew we had the best water in this side of North Carolina.

It was so good that uh before they built the random dam and everything, uh Greensboro and everybody else was buying water from us.

Uh so when uh uh uh the planning for the grounds came.

Uh over the years I've been on the council.

I always asked them why we can't get a water feature somewhere on the north side.

And when they showed me uh the plan, and it had the Silas Creek tributary.

A lot of people thought when we said Silas Creek is the parkway, yet other parkway, but there's actually a creek.

And when I saw the visuals of this, it made me very happy.

I'm sure the community would be happy with the finished product.

Um it becomes like Salem Lake and Winston Lake.

Uh it will become a destination location in our city.

So again, I want to thank you, Mr.

Miller, for working with the team, uh, Front Street and Coleman and guys, and uh I look forward to uh again us uh seeing the finished product.

I'm just very proud.

Any other questions or comments?

Can I get a motion then?

Move for approval.

Second.

We have a motion and a second on item G2.

If you will please vote when it comes up.

And I give my compliments to the staff.

It's always good when we can get grants like this.

To me, it's I know it's not free money, but it's it's the closest thing to it.

Thank you very much.

We will now go oh, keep your place.

We now go to G3.

Item G3, consideration of items related to economic development assistance of four million dollars to Carter Front Street Capital for public infrastructure improvements at the grounds pursuant to NCGS 158-7.1 public hearing for September 2nd, 2025.

Mr.

Millett, you still have the floor.

Yes, sir.

Um as you all know, uh, the state of North Carolina uh provided a um state grant for $35 million as part of its fiscal year 24 budget to the City of Winston-Salem, specifically designated for the use uh for infrastructure at the grounds development that uh is up on your screen now.

Through the end of July, 15.8 million of that 35 million has been dispersed.

So as you've seen from going by, you can tell that construction continues and is well underway.

CFS, which I'm going to refer to Carter Front Street as CFS moving forward.

If I call it CVS, that's on me.

But CFS originally anticipated that that grant would cover the infrastructure cost for the complete project.

As it turns out, the complete infrastructure build out exceeded the grant by 20 million dollars.

They did use value engineering to eliminate a big chunk of that gap and eliminated $11.3 million from the scope.

That then left a gap, a much smaller gap than was originally there.

So CFS has requested $4 million from the city as well as $4 million from the county to support the remaining high priority infrastructure areas associated with the project.

That includes Deakin Boulevard enhancements focused on traffic events and pedestrian safety, 32nd Street improvements focused on traffic and events, stream restoration, which we have talked about, as well as a multi-use path focused on pedestrian safety.

So again, I mentioned that gap that that's going to filling that gap will also involve uh other groups as well, including um grant funds that were just approved by council for acceptance, uh, interest on the state grant debt, as well as additional investments by the developer.

For the city's $4 million, the source of funds would be proceeds from the sale of an economic development property purchased with 2018 GO bond funds that were designated for economic development sites and infrastructure.

And I will note uh the current balance of those funds is $4.6 million, but I also note that the use of those funds is restricted because of the uh bond covenants, they must be used for economic development purposes.

Uh CFS did engage a consultant for an economic and fiscal impact study of the project.

Over the next 10 years, it's projected that the grounds will generate $1.3 billion in total business sales with over $37.7 million in state and $27.5 million in local taxes through direct, indirect, and induced spending.

So to give you an idea of the scale of the project, capital expenditures for the first phase are expected to total $200 million to be followed shortly by additional investment of $300 million in the project.

I will note that if this item is ultimately approved in that agreement with the developer, it does include a provision that they must demonstrate sufficient property taxes are generated by the project to cover the city assistance over 10-year period.

So any shortfall between the actual property tax revenue generated from the project and the city's debt service on the $4 million would be covered by the developer.

And I I will use an example if I can ask Jamie to pull up the debt service charge chart, excuse me.

Um I'll try to walk you through uh kind of what that looks like.

So what you see here based on a couple of assumptions, um, the the big one of which is the interest rate of 4.5 percent.

So you see the principal amount of four million dollars of city assistance, and then payments broken down by interest and debt service on that original principal amount of four million dollars, and how that is paid down over time.

So I mentioned that the developer would be responsible for any shortfall.

So I'm gonna use the first and the last year as an example.

So um just for reference sake, I just picked 200 million dollars, which will likely not be that figure year one necessarily, but 200 million dollars of property tax revenue generates 1.13 million dollars annually.

So you can see that in this example, beginning in year one, the city's debt service payment of $580,000 in year one is more than covered by the net new property tax revenue generated by that $200 million.

So if it is uh I will try and do that math in my head, but let's say that the uh investment in year one generates property tax revenue of half a million dollars rather than the $1.13 million for the full $200.

In that case, uh, I think I just used half a million as the example.

In that case, in year one, the developer would be responsible for filling that gap between $580,000 of the debt service payment with the $500,000 of net new property tax revenue.

I would for everyone's edification.

Many years ago, whatever it was, we bought, I think it was uh 80-acre tobacco farm, what in Allen something like that down on the southeast side of town.

We held it for a couple years, and I think sold it for eight million.

Is that right?

Big number.

Big number.

Uh did good job.

Anyway, the the six million or so profit from that, we've used some of it, but this is that's the balance that we're talking about here.

Yes, sir.

That came from that.

And it is restricted for economic development.

Yes, sir.

Okay.

I will note that if this is approved by committee today, the public hearing will be at the city council meeting on September 2nd.

And if time allows, Mr.

Chairman, we have representatives uh from the developer here to make a presentation.

Today?

Yes, sir.

Yeah, I would like that.

Okay.

Thank you.

I don't know if you meant now or next meeting.

Yes.

Mr.

Coleman.

Mr.

Team, I should say.

You have the floor.

Chairman Clark, Mayor, uh, Mayor Joins, Mayor Potepa Adams, and members of council.

Um, thank you all for giving us the opportunity to come again today to talk about something that we have talked to you all for almost two years at this point in time.

Um, to set the stage, and that's what I'm gonna do out of the gate, and then ask our partner Adam Parker from Carter to come up and speak about some of the nuts and bolts of the project.

Um, to frame the context, uh, the grounds represents an 80 to 100 acre multi-phase project that could end up being one of the largest economic development deals in quite some time in this city.

Um, the impact is really staggering about what we can generate from a tax base and job standpoint, and we're gonna outline some of those numbers here in just a little bit.

Um, again, a lot of this is about the setup.

We have been working with uh city on the setup of this.

Uh the city-county planning is um staff has been incredible to work with us.

Um we've had over 200 stakeholder engagement meetings with members of the community about this project.

Really try to bring the community and the city and the county along with us as we've worked through this.

And to clarify, this is a private economic development project.

This is not an institutional project, this is not a Wake Forest University project.

We are seeing it before you as private developers who have at-risk capital who are funding these projects, and a lot of the infrastructure requests that we're making is what it's necessary to build out a 100-acre, 100-year project, not just a five-year project.

So the infrastructure advancements we are making now are going to set the stage for our entire community to enjoy going forward.

Um, as Ken mentioned, the funds that we are requesting are already set aside and purposefully for economic development related projects, with this one specifically being around driving economic development related to sports, entertainment, and tourism.

That was a major impetus for why the state gave us the initial money is to continue to put Winston Salem and this part of Winston Salem on the map as a major economic driver for sports, entertainment, and tourism.

The last piece of this is we're gonna be generating significant net new taxes off of what is currently 8,000 empty parking places and a lot of torn-down buildings.

Um that investment is really gonna be what drives the net new tax revenue to repay the money that we're requesting, but also generate significant overage in taxes on an annual basis so that our community can go out and invest in other projects that we want to participate in.

So that's a little bit of the setup.

Adam will dive into a little of the project overview and I'll close with some more economic stats.

If you'll please give your name and address for the record, please.

Yes, sir, Chairman Clark.

Uh, my name is Adam Parker.

Address is 450 North Patterson.

Uh again, Adam Parker, I'm a senior vice president at Carter.

We are an Atlanta-based real estate development firm.

I've had the pleasure of working on projects of this size and scale next to stadiums and entertainment venues across the country from Atlanta to Cincinnati, and what's so special and exciting about this opportunity is Winston Salem's my hometown.

So I've enjoyed these last two years working collaboratively with the city and planning this, working through infrastructure, applying for grants together.

So thank you for your time today, and I'll dive a little more into the specificity of this request.

When you think of the first phase of the grounds, as Ken said, it's over 200 million dollars of investment.

I think it's best to think of the first phase and four components.

You have the infrastructure, which we'll talk about in greater detail here shortly.

You have a residential component, which about two weeks ago we closed more than $80 million of private financing to build $229 apartments that will bring $521 people living in the now parking lots outside of the football stadium.

That project in excess of 80 million dollars will be on the city tax rolls.

When you think of the third component of the first phase, you think of the retail village.

This is currently in design and will break ground next year, but that component will be in excess of $50 million.

That will be a true community asset.

It will be food beverage options, it will be soft retail options.

Think big open green spaces.

This is what we want to be Winston Salem's living room.

This is where we want people to come, whether it's for breakfast, lunch, or dinner, to come shopping, come enjoy the green spaces.

Again, that $50 million investment will be on the city tax roll.

Then lastly, the final component of the first phase is an office building.

That office building is going to have hundreds of employees working in it that will go and shop and will go and eat at these restaurants that will be pumping money into the Winston Salem economy and will liven up this retail village that will have 521 folks living next to it and hundreds of people working inside of it.

On top of that first phase, Carter and Front Street have continued to get interest from additional development.

That would include a hotel use, that would include future retail, as well as future multifamily.

All that being said, with the $35 million that was given by the state, that $35 million will not cover the full scope of infrastructure needs to attract the future investment beyond what would be the first phase.

The infrastructure request that is before you today is all for public related, specific horizontal infrastructure and nothing towards vertical private development.

The main reasons behind the request are fourfold.

First and foremost, we believe in doing the infrastructure scope the right way.

As Ken mentioned, we have value engineered over 10 million dollars out of the scope of all the infrastructure, and the remaining scope items, which I'll walk through momentarily.

We know from talking with additional capital providers are the baseline for what would be required to attract what would be that second phase of development, which could be upwards of 200 or even 300 million dollars.

Secondly, all of the scopes that we will be walking through would be critical to attract that future development.

If not for these additional scope items, that puts future phases at jeopardy and future dollars hitting the city tax rolls at jeopardy as well.

Thirdly, the full project scope on the infrastructure would finish off the goals set forth in the $35 million state grant, which were to enhance the ability to host events, enhance the future value and opportunity of the fairgrounds, as well as enhance the presence as Winston Salem being a sports and entertainment destination, not only within North Carolina, but within the southeastern United States.

Secondly, would be the stream remediation work.

As Mayor Pro Tim Adams mentioned, this will really be the heartbeat of the project.

This is going to be the envy of many other not only neighborhoods, but towns and states once this project is complete.

This is going to be an engaging asset that will attract visitors, tenants, and additional outside investment.

And then the last scope item would be the multi-use path.

This is also a community amenity and is focused on pedestrian safety.

You've seen what's happened with Deacon Boulevard when you drive down University Parkway, we have shrunk it.

The focus of this project, we want people to come and stay and spend time and feel safe doing so, and we believe the multi-use trail will accomplish that.

The last piece that I would like to emphasize before I hand it back to my partner Coleman team, is that as we've looked at this project and we've looked at this shortfall, we've also looked at what this project is.

And this project is a true public-private partnership.

So our development team of Carter and Front Street is committing between four and five million dollars to this shortfall to address this infrastructure.

Because this is a public-private partnership, Carter and Front Street are also putting our skin in the game because we know it's the best thing for the project and the city of Winston Salem.

In closing, this ask is all for horizontal infrastructure work for the site and not towards any vertical development that will lay the foundation for future development and additional tax dollars for the city of Winston Salem in the years to come.

With that, I'll pass it to Coleman Team who will speak more on the taxes that will be generated by this project as well as the jobs.

So financially, what does all this mean uh for the city?

Um we've talked about phase one, what again is about over 220 million dollars in development.

We expect uh subsequent phases over the next 10 years to be upwards of 500 million dollars in private development.

That investment and that development is what Ken mentioned before in the economic impact study is what generates that 1.3 billion dollars in economic impact.

The economic impact study from a tax standpoint really starts to focus more on the spending side.

So that will be the hotel that we build, those are the room night taxes, the sales taxes from the restaurants.

We take that spending plus the projected property taxes.

We anticipate upwards of 40 million dollars in net new taxes to be generated off of currently non-taxable empty parking lots.

That will be about 24 million dollars or so in property taxes, with a balance being predominantly sales taxes.

The $4 million that we are requesting, we conservatively estimate to be paid back within a five year period of time.

Jobs, this and tissue the economic impact study anticipates this creating 542 direct net new jobs.

And we talk about indirect and induced jobs, it's over 800 jobs associated directly with the grounds projects.

That is minimum wage, six-figure plus, mostly hospitality, but jobs that are going to be in and of the community that is around us, jobs that did not exist in this area for the last 15 or 20 years, jobs that used to exist that we all remember back in the day.

So it's a real resurrection of a job and a hospitality, entertainment, and a real experiential district for our part of the community.

And I will close by saying the the mission statements of Carter and Front Street are essentially built around enhancing the communities where we operate.

We don't believe there's any truer project that we have done more than this one that will have a positive impact across the entire community.

There are already 750 to 800,000 people a year that come to this area.

We're turning that into a 365-day a year destination for all of Winston Salem, all of North Carolina to come and be an inspirational and an aspirational place for us to be and live and play and enjoy the community.

Um we appreciate all the things that you all have done with us so far, um, and we look forward to a really successful project.

I'm happy to take any questions if there are any or clarifications.

Any questions?

No questions.

I just thought you were gonna walk the council through the presentation too.

I mean, it's a great presentation.

I mean the one that's that.

Can you do that?

We can so the all of council should have received those.

We did.

We did.

Um I hear from you, it kind of gets you there quicker.

We we can certainly run through this really quickly if you would like for me to.

Yeah.

Um, so this brings a little bit of life to the projects that Adam was talking about.

Um I'll start with the infrastructure, Deacon Boulevard.

That is the new Deacon Boulevard.

So if you drive out there today, you will actually see the new Deacon Boulevard and the two new parking lots that will help support that retail village.

Obviously, the significant piece of the infrastructure is that greenway system.

That is the greenway that is along Silas Creek.

Before about four months ago, you couldn't even see that the creek existed.

It was about 25 or 30 feet deep in some places that is being brought back up to about one foot deep with a whole new stream bed being built.

If you go out there today, you can see water actually going down the creek and it being an already a fairly significant water feature.

A lot of the green, the gray lines you see are where we anticipate either the current or future greenway system to go.

We expect there to be a one-mile loop within our project with spurs that connect throughout the community here.

The uh red box is the office building that Adam mentioned, the orange boxes are the retail village, and the blue L-shaped buildings is the multifamily project.

So those are all of what is contained in that 220 million dollars in just phase one, with phase two and three being in and around the Deacon Boulevard area and to the north of that existing residential project.

Question the residential go back one.

Is that basically mostly net currently parking lot?

That is currently a parking lot.

Okay.

Are you replacing that parking with the new parking?

Great question.

As of the end of phase one, there is a net neutral parking impact that will happen here so that we can continue to host major events at or of a greater service than what was previously delivered.

Okay, thank you.

This is one we're really excited about that that uh Mayor Protep Adams already chimed in on.

This will be a water feature.

Now, this is a little bit into maturity of the actual um bushes and shrubs and trees that are being planted there, but the numbers or over 200 trees and 3,000 native plants are going to come back into this area.

And it already does look like a meandering stream.

We anticipate this to be something that is drawing people into the heart of the project.

You can come here and not spend a dollar on food or a game, but have a place that is for and of the community with walking and biking trails that will be about 13 feet wide on both sides of the stream with a really unique bridge that connects the north side trail to the south side and the retail village.

Here's the heart of the retail village.

It gives you a sense for the makeup of what we're trying to achieve here.

A lot of this is very purpose-driven.

The goal here is obviously it's going to be a successful when there's 30,000 people at a football game, but the major point here is how do we drive a thriving, safe and busy district when it's not a major event day?

So the design of these buildings as a five uh building village is really purposeful in what the overall placemaking is of this place.

It is designed to be multi-generational, it is not to be very easy to get to.

We'll have a multiple ranges of retail tenants.

I would imagine of the 42,000 square feet we have, probably 75 percent of that will be food and beverage related, about 25 will be more traditional soft good retail.

But again, the goal here is to create a vibrant district, and we call it the rainy night in February when there's nothing going on.

How do you pull up and get easily and conveniently and safely into this retail village and what does that experience look like for you all year round?

You can go through these somewhat quickly.

These are um inspirational images of the actual architecture that we are designing right now, and as Adam mentioned, we'll be breaking ground on towards the beginning of next year.

Lots of outdoor spaces, lots of it um areas for children, um again, kind of a multi-generational opportunity here.

Here is a residential project with a really unique clubhouse that sits right in the middle.

You can see through the architecture of these projects.

They're not all supposed to look like a shopping mall.

There's different architecture, there's different features, so it really feels like it has been purposefully designed throughout the project with all the infrastructure weaving through this.

And the major infrastructure projects we're talking about being impactful here from the money that we're requesting is what enables us to do more of these projects and drive more tax revenue.

There's another view of that project with the greenway system in the foreground.

There is the office building right there.

This five-story office building with access from both sides, and it will sit in between the retail village and the football stadium.

These are fun to look at.

This is the new Deacon Boulevard.

It actually looks much better than that now.

All the parking lots have been paved.

There is grassy down where a lot of the dirt is.

On the left-hand side, the north side of Deacon Boulevard is where that retail village is already kind of getting pad graded.

Beyond that is where the office building will go.

The two parking lots to the left, um, Chairman Clark are where that multifamily project is going.

Those are the two parking lots where the multifamily project will go.

There's been a lot of roadway enhancements at that university intersection.

If you remember, obviously, you hear about some unfortunate accidents that happened at university and Deacon Boulevard.

A lot of that has become significantly safer from a pedestrian standpoint with the money that we've already spent.

This is another view of the new Deacon Boulevard and parking lots that we've created.

My concern was just to be sure we had enough parking for game day.

Yep.

The city has already had to approve our parking um plan for the entire project.

And as we have a parking consultant that's been brought in, they have stressed this project at full build out on a game day to ensure that the intersections essentially from North Point Boulevard to Coliseum 27th Street from University all the way to Akron Drive and 52 are all maintained appropriate level of service.

Okay, thank you.

And then here's the final before and after image of what the creek used to look like, probably about four months ago.

It is significantly beyond that now, and then what it will look like essentially day one, and it will continue to get built in as um the plants grow up around it.

There's the groundbreaking that all of you are at.

And the last slide goes into the economic impact numbers.

Any questions have you met with the county yet?

We have met with a lot of the county leadership.

We have met a lot of uh individual commissioners.

Um we are going before closed session on Thursday, and we have made them aware that we believe this is truly a everybody participating type of project.

We have skin in the game.

Ideally, the city will have skin in the game, and so will the county as they will reap significant benefit from a tax revenue generated from this project.

Okay, thank you, sir.

Yep.

Any questions?

Okay.

Thank you all so much.

Ready for full motion.

Uh Mr.

Millett, is that all all you wanted to say?

No, sir.

That that's it.

Okay.

And the motion we're going to send this to full board for a public hearing.

Yes, sir.

It would be at the um city council meeting on September 2nd.

So I guess I'm looking for a motion to move this to full council for whatever day he just gave for the public hearing.

I move for approval of item G3.

Second.

We have a motion of second on G3.

If everyone will please vote when it comes up.

Thank you very much.

That is all I think we had on the agenda.

Thank you all very much.

Thank the team folks for being here and for your commitment to this community.

Coleman, can you stay one second after we finish?

Thank you.

We're adjourned.

Thank you.