Murray approves Rockworth development agreement for Block 1 after heated public debate

Murray City’s Redevelopment Agency (RDA) and the City Council voted to authorize a development agreement with Rockworth Companies for the redevelopment of Block 1, the key parcel at the southwest corner of 4800 South and State Street that city leaders have targeted for downtown revitalization.

The agreement, approved first by the RDA board and later by the City Council on April 1, 2025, authorizes the developer to move forward with designs and allows staff to negotiate and execute related disposition, participation and parking agreements. Chad Wilkinson, speaking for city staff, described the document as the “backbone” that will be followed by several implementing agreements and noted the developer has agreed to construct project elements substantially like the renderings shown to the board and council.

The deal combines private and public contributions. According to Wilkinson’s presentation, Rockworth has contract terms to acquire an adjacent parcel known in the meeting as the Darr building and, as part of the development, would construct residential units, about 50,000 square feet of retail/office space and both surface and underground parking. Staff listed an estimated capital expenditure for the developer of about $63 million and an expected annual sales and property tax increase of roughly $526,000, with an estimated annual tax-increment increase of $278,000.

Public and council discussion focused on three financial commitments the public would make if the project proceeds: (1) the RDA would convey about 2.34 acres to the developer (staff attached a recent appraisal value of $3,690,000), (2) the RDA would contribute $3,000,000 toward an underground parking structure, and (3) the City would convey a 0.76-acre parcel (valued in staff materials at $1,210,000) across the street to support the project. Wilkinson also said the developer would provide 32 structured parking spaces designated for city use in the new parking structure. The development agreement includes a contingency for up to $1,500,000 to reimburse a developer-performed gas-line relocation, “if applicable,” though Wilkinson told the board the city expects the utility (Enbridge) will likely perform that work itself.

The agreement includes a 120-day feasibility (due diligence) period for the developer to investigate environmental conditions, easements and other possible encumbrances. Wilkinson explained that, if the developer finds unanticipated conditions that make the project unfeasible, Rockworth may request additional help from the RDA (at the RDA’s discretion), complete the work themselves, or terminate the development agreement. The development agreement also states that if the developer purchases the Darr building and later terminates the agreement for feasibility reasons, the RDA would be obligated to purchase that building back from the developer at the developer’s cost.

The project drew both strong support and stark opposition during the public comment periods. Supporters said the project would generate revenue and activate downtown. “This is a chance to do something,” Phil Markham, a Murray resident, told the RDA board, saying he wanted the city to seize an opportunity to invest in downtown. Several other residents and business owners spoke in favor, including Susan Wright, who described the site as an “eyesore” across from her businesses and urged development to draw customers downtown.

Opponents and other speakers raised concerns over transparency, unanswered financial details and the scale of residential development. One RDA commenter asked repeatedly for the purchase price that Rockworth would pay for the city-owned portion of Block 1 and for the Darr property; staff and the developer said the developer’s due-diligence period ends April 11 and the parties were working toward a closing late in April, but a final purchase price for the Darr building was not disclosed at the meeting. Residents asked whether the city could be left “on the hook” to reimburse the developer for the Darr building if the developer later terminates the project.

Rockworth representative Adam Davis confirmed the developer’s due-diligence period runs through April 11 and said the developer’s planned closing on the Darr building is scheduled for April 30. The developer declined to disclose the Darr purchase price in the meeting record.

The RDA board approved the resolution earlier in the evening; the recorded RDA roll call showed board members voting Aye: Adam Hock, Paul Pickett, Scott Goodman and Diane Turner; Nay: Pam Cotter. Later the City Council voted to authorize the city’s portion of the agreement; the roll call recorded Councilmember votes Nay: Adam Hock; Aye: Paul Pickett, Scott Goodman and Diane Turner; Nay: Pam Cotter — the motion passed by a 3–2 council vote. (Names are recorded as given in the meeting roll calls.)

Staff and the developer emphasized that the development agreement itself is a framework. Wilkinson told the board and council that several appendage agreements — two disposition (land transfer) agreements, a participation agreement that will describe the RDA funding mechanism, and a parking agreement specifying use and timing of the 32 reserved city stalls — will be presented later for review and formal approval.

The RDA fund balance reported at the meeting was just above $8,000,000, and staff told the board that the projected RDA contributions fit within that fund balance. Wilkinson and Rockworth said conversations with Enbridge about the gas line relocation are ongoing and that the reimbursement cap only applies if the developer performs the relocation work.

What’s next: the agreement authorizes staff to continue negotiating and to execute the implementing disposition, participation and parking agreements. The developer’s due-diligence period runs through April 11, and the developer indicated a target closing on the Darr building of April 30. If the developer completes due diligence and the implementing agreements are executed, construction and further design work would follow; if the developer withdraws because of unanticipated conditions, the agreement provides the RDA the option to acquire the Darr building at the developer’s cost as described in the development agreement.