Edenton council authorizes financing and property steps to advance Sears building redevelopment

Edenton — The Town Council on Aug. 25 approved a package of financing and property-authorizing measures to support the planned redevelopment of the former Sears building and related parcels.

Corey Goodton, lead presenter for the town, told council the resolution authorizes an installment financing agreement not to exceed $6 million: a tax-exempt loan up to $600,000 and a taxable loan up to $5.4 million, both structured for 20-year terms and maturing no later than 2046. "The resolution that is presented is for a financing agreement not to exceed 6 million," Goodton said.

Mary Nash, an attorney with Maguire Woods who joined by video, said the package reflects the results of an RFP and has been approved by the Local Government Commission. "I believe you got it just right," Nash said when summarizing the debt-approval steps.

Why it matters: Town staff said grant funding expected to cover roughly $1.7–$1.8 million of the project costs will reduce borrowing needs, but many grants are reimbursement-based. Goodton explained the financing includes multiple draws timed to reimburse the town for up-front outlays while grants are processed. He also described a collateral structure that follows general statutory guidance on reserve/collateral sizing.

Council also considered a four-part economic development resolution tied to the same project — described in the meeting as "Project Teapot" — that would (1) authorize an economic development agreement for the project, (2) permit acquisition of 211 South Broad Street (the Sears building), (3) acquire 311 North Oak Street as collateral, and (4) authorize ground leases for 211 South Ball Street and 206 Court Street. Nash and Goodton explained the town would retain fee ownership while using a ground lease and a drop-down LLC under Main Street Edenton to manage construction and the seven-year tax-credit period.

Staff and council discussed timing and tenant plans: Goodton said the town is aiming for an Oct. 1 construction start if the IFA closing and building acquisition close as planned, with an estimated 10-month buildout and an additional one to two months for tenant equipment and fit-out. The presenters said existing first-floor commercial leases would be honored and that Main Street Edenton would handle construction and subleases during the tax-credit period.

A correction noted in the meeting adjusted an appropriation figure from $1,450,000 to $1,500,000 for a project-related line item. Council later moved and approved a motion to enter the appropriation and related resolution by voice vote; the transcript records the outcome as approved by voice with no roll-call tally recorded.

Votes at a glance: - Installment financing resolution (up to $6 million): approved by voice vote (no roll-call recorded). - Four-part Project Teapot resolution and related appropriation (including $1.5 million correction): approved by voice vote (no roll-call recorded). - Certificate of sufficiency for a separate voluntary annexation (316 Old Turk Road): approved by voice vote (see separate item).

What happens next: Staff will proceed with closings and coordinate with Main Street Edenton, the new-market tax-credit partners and the town attorney on contract and appropriation documentation. Council directed staff to reflect the corrected $1.5 million figure in minutes and documents.

Attribution: Quotes and attributions in this article come from presenters Corey Goodton and Mary Nash and from voice votes recorded in the Aug. 25 council meeting.