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Sanford officials report momentum on downtown projects, from co‑working and boutique hotel to $20M pharmaceutical facility
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Summary
City staff updated the commission on multiple downtown and Goldsboro projects: Workspace Collective co‑working (six‑month buildout), a downsized 218 Palmetto residential plan, a small boutique hotel site, an $18–20 million Hill Pharmaceuticals facility, an 11‑court indoor pickleball center and other retail recruitment efforts.
City staff delivered an extended update on downtown and Goldsboro‑area projects, describing a range of private and public‑facing developments that staff say together indicate growing market confidence.
Pamela Lynch summarized the Workspace Collective renovation (former Sarah Jacobson building at Sanford Avenue and 1st Street), saying owner Adam Ramsey has secured funding, McKee Construction is poised to begin and the buildout should take about six months once the contractor starts in early May. Staff noted the property is on the tax rolls and has an active waiting list for space.
Officials described changes to the 218 Palmetto project: developer Dan Matthews has redesigned the building to reduce costs and address tariff and financing pressures, cutting the unit count (reported in staff remarks as reduced from 28 to 14 units) and adding seven short‑term rental units. Staff said site work (including a potable water line) is expected to resume within a month.
Staff also reported a rapid city‑assisted sale of a small downtown parcel — taken off the market after eight years and closed within seven days of contract — that the new owner envisions as a small boutique hotel of roughly 12 units and expects a year‑end opening timeline.
A major industrial/logistics project on McCracken Road and a Hill Pharmaceuticals facility drew particular attention. Staff estimated the Hill investment in the $18–20 million range, called it a high‑end jobs creator with significant FDA compliance requirements, and said attracting such tenants requires creative leasing/lease‑term work with airport authority partners.
Adaptive reuse projects include a proposed Diadem indoor pickleball complex in the former Joann’s (11 courts, two simulators, capped membership plans with an overall cap near 275 members, and an anticipated August opening) and the Hooked Fish Camp conversion of a former Hooters site (operator admitted a stop‑work enforcement issue after work began prior to permits).
Staff emphasized that regional catalysts such as the nearby Costco and active tenant recruitment — including removal of long‑standing burglar bars at a Family Dollar storefront — are helping bring national and regional retailers to the 1792 corridor.
Why it matters: The combined projects represent both small‑scale downtown activation (co‑working, storefront renovation, boutique lodging) and larger capital investments (pharmaceutical and distribution projects) that staff say will bring jobs and increase commercial demand, but each carries different permitting, financing and infrastructure implications.
Next steps: Staff will continue to coordinate tenant recruitment, tenant improvements and necessary infrastructure work and will return to the commission with any items that require formal action or budget adjustments.
