Spartanburg City Council on Monday approved the first reading of a development agreement that is expected to pave the way for a $25 million renovation of the historic Montgomery Building downtown.
Councilmembers voted unanimously in favor of the agreement between the city and Greenville-based developer BF Spartanburg.
The developer’s plan includes a full restoration and redevelopment of the 92-year-old office building into a mixed-use high-rise structure that will include 72 apartments, 9,000 square feet of office space and 9,500 square feet for dining and retail.
James Bakker, principal of BF Spartanburg, said work on the building is expected to begin in January.
“It feels great,” Bakker said. “We’re very thankful for city council’s support. We worked very hard with city staff on the details of the agreement and we’re very grateful for their work as well. This is a huge step in the right direction.”
According to the building’s historic places registration, it was build in 1924 by the Montgomery family, who were prominent in the local textile manufacturing industry, and designed by Lockwood Greene.
During its lifespan, the 10-story building has supported a variety of office tenants, including BMW Manufacturing Co., which set up space on the top floors while its plant off Highway 101 was under construction.
For the past two decades, however, the building has continued to slowly crumble and decay.
Several proposals to save the site failed to materialize into anything tangible, and local leaders feared the worst for the iconic landmark. They said BF Spartanburg’s plan offers the building a bright future and are hopeful it will bring new momentum to downtown.
“The redevelopment of the Montgomery Building promises to be a next-level catalyst for downtown Spartanburg,” said Will Rothschild, a spokesman for the city of Spartanburg. “Tonight’s initial approval of a development agreement was an important step in the midst of an ongoing surge of investment and development in downtown.”
Per the agreement, the city would provide 140 parking spaces at the St. John Street parking garage next door at no cost for 10 years and invest up to $750,000 to connect the parking garage and Montgomery Building with an attractive pedestrian-oriented plaza.
The city would also reconstruct the sidewalks and streetscape around the Montgomery Building; enable the project to benefit from the Special Property Tax Assessment for Rehabilitated Historic Property; and convey a .041-acre remnant parcel to the developer for $1 to enable the construction of the new mixed-use building, which will be taxed at common prevailing rates.
