File #: 25-0146    Version: 1 Name: Innovation District Update
Type: Agenda Item Status: Agenda Ready
File created: 2/26/2025 In control: Budget Public Policy
On agenda: 3/11/2025 Final action:
Title: Innovation District Update
Attachments: 1. Updated_24_Q4_Pearl Update for Government Partners.pdf, 2. innovation handout.pdf
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Title

Innovation District Update

 

 

Action

ACTION:

Receive an update on the Innovation District development

 

 

Staff Contact:      Leslie Johnson, Deputy County Manager

                                Roger Johnson, Economic Development Director

                                Collin Lane - Atrium Health, Senior Vice President, Facilities Management Group

                                Hillary Crittendon - Atrium Health, AVP, Head of Innovation District Operations + Strategy

 

 

Presentation:      Yes                                          

 

 

BACKGROUND/JUSTIFICATION:

Wexford Science & Technology ("Wexford") and Atrium Health ("Atrium") are developing an Innovation District (also known as The Pearl) that will include mixed uses such as a medical school, research buildings, office and retail space and housing. The project is located on approximately 26 acres along McDowell Street between Stonewall Street and Morehead Street.

 

On December 7, 2021, the Board of County Commissioners (BOCC) adopted a Resolution approving an Interlocal Agreement with the City of Charlotte for a reimbursement of public improvements to be constructed by a private developer in support of new economic development opportunities by committing 90% of the incremental ad valorem taxes created by the project for a period of fifteen years and not to exceed value of $38,356,477.

 

At the time this project was presented to the BOCC, it was estimated that the private investments would total approximately $1.5 billion.

 

The total cost of the public infrastructure included in the project is $94.2 Million. A tax increment grant (TIG) in the amount of $60,000,000 from the City of Charlotte and Mecklenburg County is to support the development the public infrastructure, to include:

-                     Purposeful Walk, Cycle Track & Plaza

-                     Regional Parking Deck

-                      New / Improved Roads

-                      Pedestrian Underpass

-                      Intersection Improvements

-                      Transmission Line Relocation

-                      Storm Culvert Relocation

-                      Public Sanitary and Water Line

-                      Grading & Demo

 

The mechanism to finance this reimbursement will be a 15-year, 90% tax increment grant based on the new, incremental ad valorem taxes created by the project to be constructed by the developer. This arrangement is pursuant to Article 20 of Chapter 160A of the North Carolina General Statutes. Under this Article, the City of Charlotte entered into an infrastructure reimbursement agreement with the developer for the entirety of the $60,000,000 tax increment grant. The City of Charlotte and Mecklenburg County entered into an interlocal agreement whereby the County will remit to the City 90% of the County’s incremental ad valorem taxes for a period of no more than 15 years for an estimated County share of $38,356,477.

 

In addition to the public infrastructure improvements, Wexford and Atrium presented other community benefits associated with the project to include new jobs, affordable/workforce housing, workforce development initiatives/economic mobility and promoting the growth of small businesses and entrepreneurs.

 

 

PROCUREMENT BACKGROUND:

N/A

 

 

POLICY IMPACT:

N/A

 

 

FISCAL IMPACT:

N/A