River Rock, which is building the upscale rental homes on the rear of the property, is pushing ahead, despite the delays to infrastructure in the commercial section / Photo by Jason Benavides
Feb. 6. By Dave Yochum. The Alexander Farms project on Westmoreland Road at Catawba is down, but by no means out. Work on the commercial portion of the project has come to a halt, but a refinance is under way after a key investor passed away.
“We are unfortunately experiencing a significant delay and demobilization while we work out the new corporate structure as a result of the death of our partner,” said Jesse McInerney of WIN Development, the Florida-based developers of the 55-acre mixed use project.
WIN is in the process of restructuring the debt and the “capital stack,” which is the mix of different types of capital used to finance the project.
McInerney
“Much to our disappointment, this is just a process that takes some time to sort out, but the group is actively working to get things back on track as quickly as possible,” McInerney said.
River Rock, which is building the upscale rental homes on the rear of the property, is pushing ahead, despite the delays to infrastructure in the commercial section.
“We hope to have this project looking as promised for the community very soon,” McInerney said.
Background
Without payments coming in, the site contractor moved their equipment off-site, leaving erosion control unfinished and uncurbed roads amidst acres of bare dirt.
The entire matter constitutes a default under the terms of the Surety Bonds required by both the town and the county. Essentially an insurance policy, the bonds guarantee work associated with what will become public infrastructure.
McInerney explains the process: “When the work does not get done and the developer defaults on the promise to deliver the improvements, the Town/County then has the right to send a notice of default to the bonding company and the bonding company is then required to send the agreed amount for any work outstanding.”
The town/county bond amount is a little over $3.9 million, while a separate NCDOT bond is $1 million.
The bonding company has been on-site to inspect and understand the scope of what’s remaining.
The funds have not been sent and site work remains partially complete, resulting in “precarious” topographic conditions that could deteriorate, meaning erosion and mud.
County officials did not respond for comment, but they sent a letter demanding payment on the bond or a lawsuit would follow in 15 days. That was Oct. 8 and, apparently, no lawsuit is forthcoming.
The first stores were expected to open in Alexander Farms in the spring of 2023. Lidl, the anchor tenant, has since pulled out.
Road improvements
When the Town Board approved the rezoning back in 2020, WIN Development agreed to perform a number of transportation improvements including the following:
• Restripe the southbound left turn lane on West Catawba Avenue approaching Westmoreland Road.
• Construct the fourth leg of the roundabout planned for the Eagle Ridge Way/Westmoreland Road intersection.
• Add a 400 foot southbound right turn lane on Statesville Road at Westmoreland Road
• Extend the eastbound turn lane at the Washam Potts Road/Westmoreland Road intersection.
Quotable
“They [road improvements] are funded and guaranteed, regardless of who eventually implements the project,” Deputy Town Mayor Wayne Herron.
Town needs to proceed with the legal remedy before irreparable damage is incurred
Posted by Bucky Dornster | February 6, 2025, 10:38 amThe roadwork on Westmoreland that has been done so far in HORRIBLE. That better not be the completed portion for the right hand turn going onto Catawba
Posted by BW | February 6, 2025, 11:47 amThey don’t have the money to continue. Call the bond and put vegetation back until the developers figure it out. I don’t feel sorry for them.
Posted by Rick | February 6, 2025, 6:53 pmThe “roadwork” is TERRIBLE! Certainly, it is not finished! I can’t believe the developer(s) didn’t have Keyman Insurance to cover the death of a partner. They ripped out all of the vegetation on the farm, including relocating the historic farmkeeper’s home, which remains half-assed propped up on the property. Shaking my head.
Posted by Anonymus | February 7, 2025, 8:47 am“The entire matter constitutes a default under the terms of the Surety Bonds required by both the town and the county.”
The town and county must hold this developer accountable just as each of us as individuals would be held accountable. What’s the point of having this requirement if we’re not going to enforce it?
Posted by JT | February 10, 2025, 11:14 amBoth CD Nantz on Catawba and Alexander Farms’ developers are playing games with the Town and residents.
Both developers cleared their lots under the pretense of having commercial tenants lined up (7-11, Lidl, Caribou Coffee,…), but all these tenants have conveniently backed out on both properties right after site prep was completed on both lots.
Alexander Farms was making money sending all their their dirt up to CD Nantz to fill the big valley shaped hole there a few months back.
Now both these developers are going to sit on their prepared lots indefinitely until actual commercial interest materializes and we have to look at dirt indefintely instead of trees (or buildings).
Both developers took the town for a ride. There was no need to prepare these sites right now when there was no commercial interest from tenants to build immediately in either locations.
Posted by ANONYMOUS | February 10, 2025, 1:58 pmReally hoping sufficient lanes are added heading eastbound on West Moreland at Statesville. There needs to be a left her going north onto Statesville. In addition to a right turn lane going south onto Statesville. This intersection heading eastbound is terrible. The two mile drive to JV Washam takes me at least 20 minutes due to being stuck eastbound on Westmoreland at the stoplight for 15 minutes. I see the new curbs have been installed on both sides of Westmoreland . The “new” widened road does not appear wide enough for four lanes (not wide enough for both a left and right turn lane). Having only either a southbound turn lane onto Statesville or only a northbound turn lane onto Statesville will not solve the eastbound traffic issue. The middle lane will remain extremely backed up. The stoplight currently gets backed up all the way past I-77, and then about another half mile, sometimes even to the baseball diamonds. I am very confused as to why all these utilities would be moved, eminent domain would occur, all the equipment and workers would be brought in, all this grading and paving, to only add one lane. This intersection is extremely busy and adding one lane is a gigantic waste of money as it won’t solve the issue.
Posted by Lisa Land | February 14, 2025, 10:42 am