Salisbury agrees to grant revisions on new development project

Published 12:01 am Wednesday, April 26, 2023

SALISBURY — In February, the Salisbury City Council awarded an incentive grant to Crow Holdings, a Dallas-based real estate investment and development firm,  to build two commercial buildings that would include a $73 million capital investment by the company.

At the last city council meeting, Crow Holdings and the Rowan Economic Development Council returned to the city to ask for a revision to the incentive grant request, which was approved.

Crow Holdings is planning a speculative building project on a site located between Peeler and Pietyrk roads. Initially, Crow Holdings asked for a local level-two incentive grant totaling $1.4 million over three years for the two buildings. After going over the details of the grant, all parties agreed that it should only go toward one building.

The building is 700,000 square feet and will be used as a site for manufacturers and distribution companies. The terms for the grant and Crow Holding’s investment amount would not change, only that it would involve the one building. Crow Holdings will go to council for another, separate grant regarding the 500,000 square foot second building in the coming months.

“With increasing interest rates, there are some headwinds around the second building, but hopefully things will come together. That is their intention if things do work out, they want to build a second building,” Christopher Kouri, an attorney at Maynard Nexsen and representative of Crow Holdings, said.

The terms of the grant are not the same as the city’s current incentive policy. Typically, a level two grant would equal to 80 percent of any new real property taxes paid to Salisbury over five years. This would make the grant’s value for Crow Holdings roughly $2.1 million and Salisbury would receive a net revenue of $3.1 million over 10 years.

The current location for the building lacks water and sewer services, and the roads would need improvements as well. Crow Holdings is willing to pay more than $4 million for these, as well as work on Interstate 85.

To recoup their infrastructure costs over a shorter period of time, Rowan EDC Vice President Scott Shelton presented a plan to the city council that would make the revised grant equal to 90 percent of any new real property taxes paid to Salisbury over three years, changing the value for Crow to $1.4 million and $3.8 million of revenue for Salisbury over 10 years. Their request would mean a smaller overall grant payment and an increase in net revenue of $682,900 for Salisbury.

There is no definitive timeline on construction for the first building. The tax incentive grant approved by council is for real property only, such as the building and land. Once tenants occupy the building, they will request that the council consider offering incentive grants on that personal property, which would mean more long-term revenue for Salisbury.