A South Carolina development company won financial assistance and a letter of support from the city of Winston-Salem yesterday for its plans to renovate two downtown buildings.
The company, U.S. Development Co. of Columbia, S.C., had asked the Winston-Salem City Council to support its efforts to renovate the Pepper Building at the corner of Fourth and Liberty streets and Coe Plaza on Trade Street.
The company wants to turn Coe Plaza into apartments and a park. Its plans for the Pepper Building are still tentative but include apartments and shops.
The city council approved the request 7-1. Council Member Wanda Merschel, who represents the city's Northwest Ward, voted against the request.
The council's decision means the city will offer U.S. Development up to $168,000 in tax breaks on Coe Plaza. The city intends to pay back $16,800 of the property taxes from the building each year for 10 years.
The decision also means the council will support the company's request to the federal government for financing at a government-bond rate for part of the renovations to the Pepper Building. The company still needs a bank to approve its loan request; the bond interest rate, though, is lower than a typical loan rate.
U.S. Development estimates that the Pepper Building will cost about $9 million to renovate, according to documents submitted to the city. The company would pay those costs using about $6 million in bond financing.
City Attorney Angela Carmon said the city would not be responsible for paying back that loan if U.S. Development can't finish the building.
The council's decision does not mean the Pepper Building will be renovated.
U.S. Development is still negotiating with the Downtown Winston-Salem Foundation, the nonprofit organization that owns the building.
The foundation is linked to the Downtown Winston-Salem Partnership, which serves as
an advocate for downtown.
Jason Thiel, the president of the downtown partnership, said that the council's decision will help those negotiations move forward.
"This allows us to get in further to drilling down the details," Thiel said.
"It makes it more realistic that they have financing."
lgraff@wsjournal.com
727-7279
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