SALISBURY — City Council members on Tuesday agreed to reimburse Trammell Crow Company $680,022 in real property taxes over a three-year period for a future manufacturing or distribution facility on Henderson Grove Church Road.

Dallas-based Trammell Crow is a real estate development, investment and property management company founded in 1948. Trammell Crow is building a 756,000-square-foot logistics center in Kannapolis called Metro 63 and made a visit to the Salisbury Planning Board in February to detail a similar project. The company plans to construct a 504,000 square-foot facility to be leased by a tenant for distribution or manufacturing business.

The proposal also required a rezoning and annexation of two parcels on Henderson Grove Church Road that were located in the city’s extraterritorial jurisdiction. The three parcels that make up the facility are 407-014, 407-015 and 407-115. Council approved the annexation of those parcels, totaling around 96 acres, at the March 15 meeting.

The company anticipates investing at least $35 million in new construction for the project, with an estimated cost of $400,000 for water and sewer extensions it plans to cover. Under the city’s existing policy, the company qualifies for a level 1 grant incentive to help offset the costs. A level 1 grant is available for investments totaling at least $5 million, with 75% of new real property taxes covered by the city over a five-year period. For this project, that would amount to a tax incentive grant valued at $944,475 for five years with the city receiving $1.6 million in net revenue over a 10-year period.

However, the company requested a grant incentive that differs from the city’s existing policy. Trammell Crow Company was instead approved for a tax incentive grant valued at $680,022 with 90% of new real property taxes covered by the city over a three-year period. That would amount to a net revenue of $1.8 million for the city over a 10-year period.

Rowan Economic Development Council Vice President Scott Shelton told council members that a new job-creating tenant may come before them to request an additional economic incentive request if it plans to further invest in personal property and equipment. So, the incentive package approved Tuesday only covers real, existing property.

Chris Corey, a lawyer for Nexsen Pruett representing Trammell Crow, said the anticipated investment from the company is a conservative figure and that a larger investment is expected.

Council member David Post thanked the company for choosing Salisbury.

“That’s why we love the EDC bringing us stuff,” said Mayor Pro Tem Tamara Sheffield. “They have real-world conversations.”

Council members also met for nearly two hours in a closed session Wednesday morning and adjourned without taking any action.

Also at the meeting:

• Council reinstated phase 6 of the The Gables of Kepley Farms for 10 single-family lots that were originally part of the master plan approved in 2005.

• Council adopted an ordinance amendment to rezone one parcel located at 201 Lumber St. from light industrial to light industrial with a conditional district overlay to accommodate a 500-square-foot addition to the existing building.

• Council appropriated to the 2021-22 budget $207,082 from the General Capital Reserve Fund and $15,738 from the Water Sewer Capital Reserve Fund to replace computer equipment across the city. The funds will allow the city to address its backlog of 92 computers in addition to 88 more.

• Council approved a municipal agreement with the North Carolina Department of Transportation in the amount of $845,000 for design and construction of a sidewalk on Jake Alexander Boulevard from Brenner Avenue north to the existing sidewalk at the railroad crossing. Of that total amount, $676,032 comes from a Congestion Mitigation Air Quality grant, with the city on the hook for $169,008 for the local match. The match will be budgeted in the 2022-23 fiscal year budget and subsequent budgets as well.

• Council authorized Interim City Manager Brian Hiatt to execute a contract with SEPI, Inc., for no more than $94,500 for engineering services related to a Pavement Condition Survey. Funds for the survey are included in the 2021-22 budget.

• Council also authorized Hiatt to approve utility construction agreements with NCDOT for reimbursement by Salisbury-Rowan Utilities on the project to widen Julian Road as well as replacing the bridge on Hurley School Road. For the Julian Road project, the project costs $452,783 for adjusting, relocating and improving public water and sanitary sewer utilities. For the bridge project, the cost is $127,074 for adjustments, relocation and improvements.

• Council also authorized Hiatt to enter into a unit price contract with Asphalt Concepts for an estimated amount of $199,239 for installation of stamped crosswalks along Innes Street between Depot and Jackson streets and on South Long Street at Monroe Street.

• Council approved voluntary annexation requests for parcel 450-001, located on Harrison Road, and 064-212, located at 275 Cross Drive.

• Council adopted an ordinance to amend Section 13-338 of the city’s code regarding prohibited parking at all times for a space on North Park Drive to match updated traffic patterns on South Main Street, per petition from Catawba College.

• Council approved the appointment of Joe McKinney to the Tree Board. A vacant seat remains on both the Historic Preservation Commission and the Alternate Methods of Design Committee.