Rocky Mount council approves $500,000 downtown grant for OIC renovation of former Memorial Hospital

The Rocky Mount City Council on April 14 approved a $500,000 downtown major development grant for Opportunities Industrialization Centers (OIC) to renovate the former Memorial Hospital at 224 Rose Street.

The grant was approved by motion of Councilman Horace Walker, seconded by Councilman Richard Joyner; council members Kenny Knight and Councilman Blackwell recused themselves from the matter and those recusals were noted on file with the city. The council voted to authorize the mayor and city clerk to execute the agreement on the city's behalf.

Why it matters: City officials and residents told the council the project would redevelop a longtime vacant landmark in a transitional downtown area and provide behavioral and integrative health services, workforce training and new jobs in an underserved neighborhood.

OIC's presentation: Tyrone Ron Holt, development and construction counsel for OIC, told the council the project cost is “roughly $14,000,000.” He said the organization has completed due diligence and is assembling a capital stack; he also said OIC expects to contribute substantial private funding toward the work and asked the city for a $500,000 incentive to help close financing. “This project will provide 45 new jobs at Rocky Mount at OIC. 30 of those jobs will be in the health and wellness area and 15 of those jobs will be in the workforce development area,” Holt said.

Holt described the building as historically significant and listed hazards and remediation needs on the site: asbestos, mold, lead-based paint, unacceptable soil conditions and an underground storage tank that will require removal and remediation as part of a complete interior rebuild. He said schematic design work is underway, preconstruction has started, financing work is progressing, construction is expected to begin in July and the building could be completed and occupied in August 2026.

Public comment: Multiple residents spoke in favor of the grant during the required public hearing. Susan Perry Cole, who lives across the street from the property, said OIC’s plan “is wholly aligned with the purpose of the incentive grant program” and that OIC intends to bring “over $8,000,000 in funding toward the cost of construction and site preparation.” Alice Davis, who lives nearby, said she supported any city funding that would move the property out of disrepair. Other supporters described the project as a way to increase access to behavioral health services and create workforce opportunities.

Council questions and conditions: Council members asked about financing details and past practice for dispersing incentive funds. Councilman Tom Harris noted the city's prior grant structure and said disbursements are typically tied to construction milestones and receipts; he said the initial tranche would be limited and released with proof of construction progress, citing an example that the first $100,000 would be paid at 50 percent construction with supporting receipts. Councilman Daughtridge and others emphasized that the city requires documented invoices and progress reporting for incentive grants.

Outcome and next steps: The council approved the $500,000 downtown major development incentive award and authorized the mayor and city clerk to sign the agreement. City staff will track deliverables, receipts and milestone-based disbursements per the city's usual practice. Knight and Blackwell were recorded as recused and did not participate in the vote.

Provenance: The council opened a public hearing on the downtown grant and noted recusals on file; presenters and public commenters spoke at length before the motion and vote. The council approved the grant later in the meeting by voice vote.