UPDATE: SG Atkins CDC's role in redevelopment of Union Station

The role of the SG Atkins Community Development Corp. in the redevelopment of Union Station has emerged as a matter of some controversy in Winston-Salem.

Harvey Davis, the former owner who is being evicted through eminent domain, predicted after a city council meeting last night that the CDC would end up in control of the facility. But Carol Davis, executive director of the community development corporation, said her organization would have to compete in request for proposals issued by the city.

The CDC's longstanding interest in the historic train station, which is located near Winston-Salem State University, is clear. The CDC was established in 1998 by the university "to be a catalyst for revitalization in the neighborhoods surrounding the campus," according to a document submitted to the city by the CDC. Carol Davis, the CDC's executive director, urged the council last night to deny a request by Harvey Davis for a lease extension. "It's just going to be difficult for economic development to pick up along [the Martin Luther King Jr. Drive] corridor without that site being addressed," she said. "Multimodal transportation is definitely coming for that purpose that will draw further economic development around the area. That's what we're looking forward to."

Notwithstanding Carol Davis' statement that her organization will have to openly compete for the opportunity to lead the redevelopment of Union Station, a draft memorandum of understanding (link) submitted to the city articulates the role the CDC envisions for itself:

[Excerpt below the jump]

The responsibilities described below are intended to identify the lead organization for the respective activity. Both parties recognize the importance of engaging in ongoing communications throughout the development process in order to fully utilize the strengths that each organization brings to this initiative. In addition, both SGA-CDC and the city will jointly make the go/no-go decision for the project.

SGA-CDC shall undertake the following activities:

• Identification of key private, public and philanthropic stakeholders at the local, state or national level who may further the development including the provision of of equity, loans, grants and subsidies;

• Identify and secure human resources from Winston-Salem State University and others appropriate to the development and not inconsistent with the MOU between WSSU and SGA-CDC and current support provided;

• Provide for the city's review an organizational/contractual structure and redevelopment plan and budget for the transformation of Union Station into a mixed-use transportation hub.

The city shall undertake the following activities:

• Conduct all necessary due diligence needed to determine organizational/contractual project viability;

• Provide information on approvals necessary to carry out the development;

• Work exclusively with SGA-CDC on project viability; and

• Support approval of a development contract/structure, if viable.

Residents worry council will back off plan to redevelop train station

A delegation of East Winston residents urged Winston-Salem City Council on Monday to press forward with the redevelopment of Union Station by condemning the Davis Garage.

“There is still an unjust behavior in the city’s treatment of black people,” community leader Marva Reid said. “We ask that the city stop this pattern of unjust behavior and allow us to keep our train station.” She added that the city has torn down parts of predominantly black east Winston-Salem while redeveloping white areas on the west side of the city.

Mayor Allen Joines cautioned council members that the city was actively engaged in litigation over the fate of the property and that they should not comment on the matter. The council went into closed session to discuss the lawsuit, which pits the city against garage owner Harvey L. Davis and to discuss a possible economic incentives deal. The council took no action on the matter after returning from closed session to adjourn the meeting.  

“Winston-Salem State University has grown tremendously, and we would benefit by having a train station because you currently have to go to Greensboro to catch the train,” said Manderline Scales, a retired educator at the university. “That would be a golden opportunity for jobs and business.” Others suggested opening a “Gaines Gallery” honoring the late WSSU basketball coach Clarence “Big House” Gaines that would feature photographs of players who went on to prominence, and retail shops. The property is directly across Martin Luther King Jr. Drive from the university. 

Councilman Dan Besse, who represents the Southwest Ward, has said that Winston-Salem is the largest North Carolina city without passenger rail service. 

Reid said that Councilman Derwin Montgomery, who represents the East Ward, told residents that the council is split on whether to follow through with condemnation of the property and some are considering finding a different location for a future train station. Montgomery was not present for the meeting and could not be reached for this story. 

The city received a $1.3 million grant from the federal government in 2004 to redevelop the former train station. The council voted in 2005 to acquire the property by deed or condemnation. 

In other news, the council voted unanimously to designate RJ Reynolds Tobacco Company Factory Complex 64 as a local historical landmark. The status allows the property owner to apply for a 50 percent tax break as long as the historic features of the building, a hulking complex at 500 E. 5th St. at the east end of downtown, are retained. 

“RJ Reynolds was known for its almost complete dependence on African-American labor,” LeAnn Pegram, historic resource officer for the Historic Resources Commission, told council. “RJ Reynolds would send trains to eastern North Carolina and South Carolina to pick up workers. At first, they worked seasonally, but eventually they settled in Winston-Salem.” 

Pegram said the building is notable for its role in the city’s labor history. 

“In 1943 there was a strike that occurred,” she said. “A factory worker died while working. He had requested leave because he was ill. Several hundred African-American women stemmers — and that’s not an easy job — went on strike immediately. They won the right to paid vacation and higher wages.” 

Pegram said in response to a question by Mayor Pro Tem Vivian Burke, who represents the Northeast Ward, that the historic commission would consider placing a plaque on the site to honor women labor leaders such as Velma Hopkins and Theodosia Simpson. 

The council also unanimously approved a $18,340 economic incentives grant to Cathtek LLC, a medical device development and assembly company. The company was established in 2000 as an original anchor tenant of the Piedmont Triad Research Park, and has purchased the old Curley Harley Davidson building on Reidsville Road with plans to relocate. 

Councilman James Taylor Jr., who represents the Southeast Ward, said city officials have expressed their wishes that the company hire local residents, but there’s no way for the city to make that a requirement of the grant.

Winston-Salem council continues negotiatons with Davis Garage owner

The Winston-Salem City Council is expected to go into closed session this evening to discuss the possible acquisition of the Davis Garage on Martin Luther King Drive for a future multimodal transit center serving bus and rail passengers, City Manager Lee Garrity said.

Garrity said the city is still in discussions with the owner. The council voted in 2005 to acquire the building by deed or condemnation. The city received a $1.3 million grant from the federal government in 2004 to renovate the former train station, which was known as Union Station. The US Supreme Court ruled that local governments may not use condemnation for economic development, but Garrity said it is legally permissible for transportation purposes.

The council rejected a plan by the garage owner and a developer to renovate the transit center as a public-private partnership in 2010 because of concerns that the project wouldn’t be financial viable.

  

Garrity said it’s unlikely that a future transportation center would replace the Clark Campbell Transportation Center at 5^th and Liberty streets because of the number of fixed-route bus lines served there.

East Winston community leader Marva Reid plans to present a petition to council tonight urging members to push forward on the initiative.

“Once again, the Davis Garage and the East Winston history is of dire importance that you help us save not only for historical reasons but the restoration of this building and train station would be the start of revitalization of East Winston economically again,” Reid wrote in a Facebook message yesterday. “The city council now wants to back out of the eminent domain and give the building back to Mr. Davis and venture on putting a main hub downtown which would devastate our master plans that we have worked very hard on for the past six years.”

Reid said that East Ward Councilman Derwin Montgomery and Simon Green Atkins Community Development Corporation Executive Director Carol Davis helped draft the petition.

The city council meeting begins at 7 p.m. tonight.