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Holly Springs DDA approves sale of two townhome lots amid complaints about slow downtown progress
Summary
The Downtown Development Authority authorized closing documents to sell Lots 15 and 16 to Stonecrest Homes, approving $100,000 upfront and an 18% gross share on future home sales; the vote passed with one dissent after members raised concerns about the developer's slow commercial progress and requested the developer appear before the board.
The Downtown Development Authority of Holly Springs voted to authorize closing documents for the sale of Lots 15 and 16 in Townhomes East to Stonecrest Homes, Georgia LLC, approving a $50,000 payment per lot ($100,000 total) and an 18% share of gross proceeds on future home sales, with the $50,000 per lot deducted from that share.
The motion to approve items E–I — which included a memorandum of agreement, a limited warranty deed, owners affidavit and a certificate of nonforeign status — was moved from the dais and carried with one dissenting vote. The chair authorized execution of the settlement statement and closing documents contingent on the actions already approved by the board.
The vote followed an extended discussion in which several board members questioned whether the authority should sell more property to Stonecrest while earlier downtown commercial parcels remain undeveloped. A DDA member said many residents ask, “What's going on with downtown?” and another decried the long delays, calling the visible inactivity “a joke.”
Staff described the sale mechanics: Stonecrest pays $50,000 per lot at signing (total $100,000 for the two lots) and the DDA retains a lien on the parcels until required payments are received at closing; the DDA also receives 18% of gross sales proceeds from the eventual sale of finished homes, net of the upfront payments. Staff also said proceeds are directed to debt service under the intergovernmental agreement (IGA) between the DDA and the city.
Board members pressed staff for accountability details. One member summarized residents’ frustration and urged the board to invite the developer’s representative, identified in discussion as “Charles,” and the developer’s attorney to the next meeting to explain timelines and progress. Staff said a city council meeting scheduled the following week would address related decisions and that a separate meeting with Walton (the lot owner referenced in materials) and legal representatives was planned to clarify outstanding matters.
The board’s supporters of the sale argued contractual constraints and market mechanics make immediate refusal risky: staff said developers typically purchase lots only when they are prepared to build and that delaying the sale could simply leave the lots idle for the duration of the contract; opponents said a short delay might provide leverage to press the developer for visible progress.
The DDA’s vote authorizes the chairman to sign the closing documents described in the packet. The board requested a schedule-of-values and a progress update for the developer at the next meeting and asked staff to invite the developer to appear and respond to questions about payments, percent complete and a firm timeline for commercial construction.
Next procedural steps: staff will follow up with the city council on related items next week and arrange for the developer and his attorney to present a progress update to the DDA.
