Vote clears way for Knowledge Park construction
Rock Hill’s plan to create Knowledge Park under the guidance of a private developer survived a final vote by the City Council on Tuesday, but not without some opposition.
The move clears the path for construction to begin on the one-time textile site that was the historic home of the Rock Hill Printing & Finishing Co., more commonly known as The Bleachery.
Knowledge Park is the planned residential and technology-based business hub city leaders have touted as the cornerstone of downtown revitalization efforts.
An agreement with the Sora-Phelps development partnership in the works for two years received final approval from the City Council by a 5-1 vote.
Councilman Kevin Sutton cast the lone vote against, saying he had become “less impressed” with Sora-Phelps as time passed.
Sora-Phelps is a partnership between Sora Development of Towson, Md., and Phelps Development of Greeley, Colo. The firm was selected in 2013 to be the Knowledge Park master developer.
“From the beginning, I’ve been a fan of Sora-Phelps, and I still believe they can do a good job,” Sutton said, but he has become uneasy with the company’s “unsettled” management and “finger-pointing” in the business community concerning the Knowledge Park project, he said.
In June 2014, longtime lead developer and point person for the Knowledge Park project Tim Elliott left Sora Development to start his own firm, then later returned to the company, leading to rumors about the firm’s stability, Sutton said.
“We could scrap this agreement and get another property developer,” he said, “or even do it on our own.”
If the council had rejected the agreement with Sora-Phelps, it would have set the start time for construction back even further. Rock Hill would have to find another firm to take on development of the site between Wilson Street and Stewart Avenue.
Then, because of a clause in the recently approved tax agreement with the York County Council, the county would have the option to review any new agreement with a different company – possibly prolonging the process even further.
Even as the rest of the City Council approved the agreement, some members seemed to share some of Sutton’s concerns.
“We’d prefer if this had gone through more smoothly,” said Councilman Jim Reno. “We’ve wrestled with this. We take this task seriously, but… we’re ready to vote.”
The development agreement is structured so that the city can hold Sora-Phelps accountable for any problems or delays, Councilman John Black said. For example, any cost over-run that exceeds money raised through the special tax district designated for the project would be borne by the company, not taxpayers.
“If anyone else comes in or they set up some other structure,” Black said, Sora-Phelps “keeps control and will still be held accountable.”
If Sora-Phelps were to hand the project off to another developer, he said, that new developer would “go through the same vetting process and get an up or down vote, too.”
Mayor Doug Echols said he was glad to hear council members air their concerns before voting.
“This shows the council has taken this seriously,” he said.
With this vote, Sora-Phelps can begin work on Knowledge Park within the next six months to a year. Even Sutton said he was hopeful the company can get the long-running project underway soon.
“It was a tough decision,” he said. “I hope I’m wrong.”
Bristow Marchant • 803-329-4062
What is Knowledge Park?
▪ In 2004, the city of Rock Hill created a 25-year special tax district downtown to pay for the creation of a technology-focused business and residential hub it called Knowledge Park.
▪ Once fully developed, Knowledge Park will include housing for 500 Winthrop students; up to 160 units of senior housing; 81 townhouses; 138,000 square feet of retail and office space; a 60-room, university-affiliated inn; an “artist and craftsman incubator”; a textile museum; a 17,000-square-foot market building; and additional off-street parking.
▪ The main development is on the former industrial grounds of the Rock Hill Printing & Finishing Co., along West White Street between North Wilson Street and Stewart Avenue. The city bought and demolished most of the shuttered textile facility.
▪ Last year, Rock Hill proposed a 10-year extension of the tax district, to 2039, citing financial setbacks caused by the recent recession and the death of a key developer. To do that, the city needed York County and Rock Hill schools officials to agree to forgo the receipt of certain tax money generated in the district.
▪ After several months of review and discussion, the York County Council and the Rock Hill school board agreed to the extension, although both expressed skepticism about the project and received concessions from the city. The school board approved an extension last fall, and the County Council did the same in June.
▪ Sora-Phelps, a development partnership between Sora Development of Towson, Md., and Phelps Development of Greeley, Colo., was chosen as the master developer for the site after a competitive bidding process in 2013.
▪ Construction on the site is expected to begin within six to 12 months, with the first phase focused on the existing Lowenstein building. Work could last for the next 10 years.
This story was originally published June 30, 2015 at 10:06 AM with the headline "Vote clears way for Knowledge Park construction."