Newton ends stalled Pasta Piccinini development agreement, acknowledges grant de-obligation

The Newton City Council unanimously approved termination of an Economic Development Agreement with Pasta Piccinini (Pasta Piccinini, Inc.) and acknowledged that the city de-obligated a $175,000 NC Building Reuse Grant tied to the project.

City Manager Sean Hovis read a memo from the local Economic Development Corporation summarizing the project timeline: in August 2022 the city entered into an agreement with Pasta Piccinini (Piccinini’s Trader LLC and Piccinini SRL) for a planned relocation and renovation of a facility at 721 Shea Road. The company proposed an initial $6 million investment and the creation of 23 jobs, renovating 22,500 square feet of a 67,500-square-foot building for food-grade production with plans to expand into additional space.

According to the memo, after purchase of the facility the company’s communication with city staff and development partners waned through 2023 and into 2024. Staff cited rising construction costs and potential penalty taxes related to the company’s move from California as among the reported challenges. The city submitted a de-obligation letter to the North Carolina Department of Commerce in November 2024; state officials confirmed the allocation has been redirected and no funds were disbursed to the project.

Staff recommended and council approved two motions: to terminate the Economic Development Agreement and authorize the mayor to sign the termination agreement, and to acknowledge the de-obligation of the NC Building Reuse Grant. City staff said neither action produces a financial liability for the city because the local EDAs were contingent on job and investment milestones that were not met.