Rock Hill takes key step forward on ‘tremendous’ indoor sports arena

City officials plan to lease a $26 million indoor sports arena they say could create a big spike in tourism dollars.

The Rock Hill City Council voted Monday night to approve a lease contract that could allow the city to lease and operate a proposed 170,000-square-foot indoor sports complex near Winthrop University.

Leaders say the complex would likely attract at least $10 million a year in tourism revenue, and could attract regional tournaments in indoor sports such as basketball, volleyball and others.

Leaders hope to have it open by spring 2018.

“This is a great step forward for our community,” said Rock Hill Mayor Doug Echols after the unanimous vote. “It’s a wonderful addition that will bring in many jobs, and have tremendous economic impact throughout this community.”

City Attorney Paul Dillingham said the contract will next head to the developers and owners of the construction for final review and approval. The developers and city staff have been negotiating the terms of the lease for several months, according to Dillingham.

The Tuttle Company, Williams & Fudge CEO Gary Williams and master developer Sora-Phelps have worked to redevelop the 23-acre site near the corner of West White and Laurel streets, once the Rock Hill Printing & Finishing Company, commonly known as the Bleachery.

The proposed sports arena would be the crown jewel of what is known as the Knowledge Park development. The agreement would mean the city could lease the building over the next 21 years, operate it with its own staff, and then be able to purchase it for $1 once the lease runs out in 2039.

In the meantime, the city will make regular payments to the owners through a 2 percent food and beverage tax and a local 3 percent accommodations tax. No Rock Hill city general fund money will be used to finance the arena, according to City Manager David Vehaun.

City officials agreed on lease arrangements for the new 140,000-square-foot complex and with the nearby 1939 Building, which will be partially used to provide team rooms, bathrooms, conference spaces and other uses. The 1939 building is connected to the Lowenstein Building, being renovated by Sora-Phelps contractors.

The sports complex is likely to be the largest of its kind in the Carolinas, according to Rock Hill Sports Commission chairman John Gettys, and the first to have a larger “championship court.”

City officials believe the arena, which will consist of space for at least nine full basketball courts, will attract at least 172,000 tourists nationally and generate an estimated $10 million in economic impact. The complex also has the capacity to host concerts, conventions and shows, according to officials.

Vehaun said both the city and the owners are working to develop plans for an 800-space parking deck.

Vehaun said it was in Rock Hill’s best interest to allow private enterprise to build the arena, because it could be built much cheaper that way.

The Tuttle Company, Williams, and fellow principal Greg Parsons, are taking advantage of federal and state Historic Preservation Tax Incentives to help fund the Bleachery renovations.

Gettys said the arena will be “transformative” for the city, as he says the establishment of Cherry Park was 30 years ago. He said Cherry Park helped spur sports tourism in the city, and has led to other successes, such as the Velodrome and the BMX Supercross track.

The city estimates that sports tourism already is responsible for a direct impact of around $21 million annually, including Rock Hill’s venues, the Supercross track, the Velodrome, Cherry Park and Manchester Meadows.

Gettys also said the city will be able to have “quality control” by operating the arena with its own employees.

“The revenue we see from this won’t be pulling from other revenue,” said Gettys. “It’ll be all new opportunities to bring people to Rock Hill and open up new venues for people in Rock Hill.”

Officials say the arena will likely have a three-lane walking track that could be open for the public to use during the week.

The council approved a measure Monday to create a University Center Municipal Improvement District, which Vehaun said will help the developers take full advantage of the tax credit incentives.

This story was originally published April 11, 2017 at 11:38 AM with the headline "Rock Hill takes key step forward on ‘tremendous’ indoor sports arena."