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.