Spartanburg council approves first reading of development agreement for 95 townhomes on North Church Street

Spartanburg City Council voted on Aug. 26 to approve on first reading an ordinance authorizing the city manager to enter into a development agreement with Van Rock Holdings LLC for a 95-unit townhome-style development on North Church Street.

City Manager Chris Story presented the project as a $23 million private investment that would build 95 townhomes averaging about 1,550 square feet, mostly three-bedroom, two-bath units. Story said the project would include at least 10% workforce units restricted to households at or below 80% of area median income, with rents calculated under federal affordability standards.

Story also described a fee and local tax payment schedule the developer will follow, starting at $250,000 in the first year and escalating to roughly $600,000 by year 10 of the agreement. The developer committed to aesthetic improvements and fencing to screen an adjacent scrap-metal processing site and to work with the city on trail development that could connect the site toward Cleveland Park and eventually USC Upstate.

Council members asked about annexation, existing tax value and site context. Story said portions of the tract currently lie in the county but that an annexation first reading is pending and the full site would be brought into the city. He estimated current tax revenue for the mostly vacant tract at roughly $10,000 to $110,000 annually (transcript references varied), and said the development would be a substantial increase in property tax receipts for the area.

Council members also raised adjacency concerns. One member asked how the project would address a nearby scrap-metal business; Story said the development would be oriented away from that site and include fencing and landscaping to screen it.

A council member who said she had met with the developer expressed support for the project, citing its proximity to major employers and the inclusion of workforce units. Councilman RA moved approval of the ordinance; the motion was seconded and approved on a voice vote. The transcript records the mayor calling for "all in favor" and saying "aye," but individual roll-call tallies were not provided on the record.

The action taken was a first-reading approval to authorize the city manager to enter the development agreement. Staff said there will be clarifications and minor tweaks between first and second reading that do not materially alter the developer commitments described tonight. The matter will return for second reading with a finalized agreement and any technical edits.

Notes: The ordinance language presented to council described the project location near North Church Street, bounded by Westwood Street and Florida Avenue and referenced anticipated trail connections; the development team expects to close financing this year and begin construction in 2025, per comments during the discussion.