City seeks options to fill $20M shortfall for KLRW project; redevelopment plan heads to Planning Board

City Manager Edward T. Blackmon told the Henderson City Council on Feb. 14 that the Kerr Lake Regional Water (KLRW) project currently faces about a $20 million financing shortfall and that staff have pursued public and private funding options.

Blackmon said the city has a bank term sheet but not a formal loan commitment. He told council the KLRW Advisory Committee wants to proceed when the financial information is verified and confirmed by council; an earlier funding application submitted in the fall had not been awarded and more funding opportunities are expected to open in the spring. The manager said that if public funds are received they could be used to repay private funds already obtained for the project.

Redevelopment Committee Chair Ruxton Bobbitt updated council that the redevelopment plan will go to the Planning Board next week and, if approved there, will return to council in March. He said the committee used public hearing comments, input from public safety departments and guidance from UNC's Council of Governments when drafting the plan, and he highlighted expected collaboration with local churches in the redevelopment area.

Blackmon and Bobbitt framed the discussion as planning and funding steps rather than policy decisions; council did not take a formal vote on financing at this meeting. The manager indicated staff will continue to pursue a mix of private and public options and will return to council as specifics are confirmed.

Next steps Staff will verify the bank term sheet and pursue potential public funding opportunities this spring. The redevelopment plan will be considered by the Planning Board next week and is scheduled for a council presentation thereafter.