The Kannapolis City Council on Monday could sign a pending interlocal agreement with Rowan County in a joint effort to extend water and sewer service to the new Old Beatty Ford interchange.

The agreement is meant to facilitate a large private development of 318 acres for a multitude of residential and non-residential purpose. Louisiana-based Commercial Properties Realty Trust will oversee the development, located one mile outside of Kannapolis’ current city limits.

Developers expressed that the development is contingent on a plan for potable water and sanitary sewer extensions to the site.

Under the agreement, Rowan County will:

• Contribute $1 million in two equal payments. The first payment will come as the city officials execute of a development agreement with Commercial Properties. The second payment when the utility extensions are completed.
• Release Kannapolis from its debt obligations on the current baseball stadium site, currently valued at $2,687,500. Debts will be forgiven upon completion of the utility extensions. Proceeds up to $3.75 million from the future sale of the property will accrue entirely to the city, with excess being shared equally between the two entities.
• Commit its share of the excess proceeds described above to match any incentives or other public investments Kannapolis makes for the purposes of facilitating private sector development of the site.
• Publicly support the city’s pursuit of municipal annexation of the site to be developed.

The agreement is subject to and contingent upon the annexation of the proposed site, and a resolution formally requesting this annexation will come before City Council at its December meeting.

Under the agreement Kannapolis will:

• Design and construct the utility extensions, assuming all responsibilities and risks.
• Execute a development agreement with Commercial Properties Realty Trust within 90 days of the interlocal agreement execution. If this is not completed in 180 days, the county can void the agreement.
• Negotiate financial clawbacks with the developer should the development not meet projected tax value increases. These clawbacks will be shared with the county.

According to the meeting’s agenda, the resolution requesting annexation of the site will be submitted to the General Assembly in December. The city will then secure an engineering firm to design the utility extensions and complete a financial analysis.

City officials expect the development agreement to be executed by February.

In other business from Monday’s meeting:

• The council will hear a presentation on the city’s Fiscal Year 2018 Audit.
• The council could approve the sale of its former Public Works Department on Kansas Street to BPH Property Management for $56,103.20.
• The council and city staff will discuss options for future solid waste collection contracts.
• The council will hear a presentation on the update process for the Unified Development ordinance.
• The council will consider approving a resolution to close an unopened right-of-way known as Kenneth Street, located south of Kimball Street.