SALISBURY — The Salisbury City Council came into an incentive grant agreement valued at $3.14 million to be paid over five years with RP Salisbury Partners, LLC, the name of the partnership between development companies Track West Partners and Rooker, at their April 16 meeting. 

Vice President of the Rowan Economic Council Scott Shelton led the presentation to the council while Cason Bufe, vice president of real estate at Rooker, the owner and developer of the I-85 business center project, and Christopher Kouri, an economic development lawyer with Charlotte firm Maynard Nexsen, were in attendance to answer any questions the city council had. 

“The economic development package that you all are considering this evening will help us tremendously to stay competitive as we work to attract new companies and new industries to the city of Salisbury,” Bufe said. 

RP has already bought a 92-acre property located between Peeler and Webb roads in order to construct a “Class A industrial park” outside of the city limits, with the intent to request annexation into the city at a later date. 

The expectation is for RP to put around $120.2 million into the project that may be completed in phases as several buildings or only one. Manufacturing and distribution companies will be RP’s target tenants for the development. Bufe said the kind of companies that could take up residence in Salisbury range from food and beverage, pharmaceutical, warehousing, retail, to internet. 

To move the project forward, RP will undergo “public infrastructure improvements” such as a less than one mile public roadway extension of Lane Parkway, new turn lanes on Webb Road, and a one mile water main extension all totaling $3.4 million. 

RP will be paying for these upgrades themselves, but they are asking for a tax incentive grant from the city to assist in offsetting the costs. They are eligible for a level 3 grant that is equivalent to 85 percent of new real property taxes paid over a five-year period. 

Over those five years, the city net revenue is $555,324, and over 10 years, that figure jumps to a roughly $4.2 million based on Salisbury’s current tax rate.

The grant is only going to be for real property improvements and taxes, but as soon as an outside company takes over the space, RP wants Salisbury to examine giving them an incentive grant based on its “taxable investments in business personal property.”

Other grant conditions comprise of the agreement not acceding $3.4 million and that water and sewer can be shut off if RP does not turn in an annexation request within 90 days of receiving a certificate of occupancy for the buildings on the property. 

Construction for the complex is to be finished by the end of 2028 and the grant period will start at the following tax year on Jan. 1, 2029. 

Shelton specified if the property is subdivided across different buildings, each one would be entitled to its own grant with the same terms. 

During the presentation, Khouri confirmed the agreement is “performance first.” Meaning, RP is responsible for paying the $3 million in taxes upfront and they will be rebated a specific amount over the five years. RP will not get anything in return unless all work is completed and they have paid the entire tax bill. 

“This is a tremendous economic development opportunity. You can see $120 plus million in investment, but jobs, important jobs for Salisbury and Rowan County,” City Manager Jim Greene said.