Executive Summary
Spartanburg’s industrial development is transitioning toward corporate headquarters and mixed-use projects as traditional manufacturing agreements, such as the former Pepsi facility, have stalled . While the city aggressively uses Multi-County Industrial Park designations to secure tax incentives for high-investment projects , developers face a 12-month moratorium on billboard permitting and strict BZA enforcement against non-conforming residential structures . Significant infrastructure investment via the Capital Penny tax is doubling the pace of road improvements to support logistics corridors .
Development Pipeline
Industrial & Large-Scale Projects
| Project | Applicant | Key Stakeholders | Size | Current Stage | Key Issues |
|---|---|---|---|---|---|
| Former Pepsi Facility | Unknown (New Owner) | Chris Story (CM) | Large-scale | Canceled/New Ownership | Manufacturing agreement failed; rights did not transfer |
| Carolina Foothills FCU HQ | Carolina Foothills Federal Credit Union | Chris Story (CM) | $6M / 20 jobs | Authorized | First CDFI HQ in city; 20 white-collar jobs |
| Beaumont Mill Redevelopment | Taft and Gibbs, LLC | Travis Brown (County PW) | $70M / 275 units | Authorized | Traffic mitigation in historic neighborhoods; trail connectivity |
| 111 Main Street | 111 Main Street, LLC | John Bauknight, Andrew Babb | $18M | Advanced | SSRC incentives; abandoned building certification |
| Hangar D Rehabilitation | Dave Co. | Terry Connerton (Airport) | 20,000 SF | Approved | 100% funded by SC Dept of Commerce |
| ... (Full table in report) |
> Additional projects are included in the Appendix below.
Entitlement Risk
Approval Patterns
- The Council consistently supports development agreements that expand the tax base and include workforce housing at or below 80% AMI .
- There is a high success rate for projects utilizing the Multi-County Industrial Park (MCIP) status to enable Fee-in-Lieu-of-Tax (FILOT) or Special Source Revenue Credit (SSRC) agreements .
- Staff and Planning Commission tend to favor rezonings that eliminate "split zoning" on underutilized parcels to facilitate denser, urban mixed-use development .
Denial Patterns
- The Board of Zoning Appeals (BZA) strictly enforces prohibitions against manufactured or prefabricated homes in residential (R-8) districts to preserve neighborhood character .
- Variances requested due to contractor measurement errors or "construction mistakes" are viewed with skepticism and have faced denial .
Zoning Risk
- A 12-month moratorium is currently in effect for the processing of all new advertising signs and billboards due to legal challenges regarding the city’s interpretation of existing sign inventories .
- The city is undergoing a comprehensive zoning ordinance rewrite, which creates near-term uncertainty but aims to integrate resiliency and tree preservation .
Political Risk
- The resignation of Councilman Rob Raines, noted for his "numerical acumen," removes a key voice focused on economic data .
- Public discourse has become increasingly contentious around historic preservation, leading council members to issue formal warnings against "vitriol" and "bashing" in public comments .
Community Risk
- Organized neighborhood opposition is high regarding traffic impacts from large-scale residential and commercial developments, particularly in the Beaumont area .
- The relocation of the historic clock tower generated a lawsuit and significant public backlash, requiring a mediated settlement to resolve .
Procedural Risk
- Large-scale projects downtown are being phased (e.g., parking garage vs. residential lining) to manage surface parking loss, which can lead to extended timelines .
- Major infrastructure grants (RAISE) require extensive easement acquisitions, where staff attempts a "gentle approach" before resorting to formal mandates .
Key Stakeholders
Council Voting Patterns
- Mayor Jerome Rice: Consistently supports large-scale downtown revitalization and youth-oriented economic development .
- Councilman Foreman: A reliable vote for progress and economic growth; frequently highlights the long-term tax revenue benefits of development agreements .
- Councilwoman Littlejohn: Focuses heavily on public safety ("boots on the ground") and consistent code enforcement in neighborhoods .
- Councilwoman Smith: A primary advocate for linking economic development to affordable housing funds and early childhood outcomes .
Key Officials & Positions
- Chris Story (City Manager): The lead negotiator for all major development agreements and property acquisitions .
- Fredalyn Frazier (Planning Director): Oversees the zoning ordinance rewrite and guides rezonings through the "center infill" logic of the Comprehensive Plan .
- Al Smith (CEO, One Spartanburg, Inc.): Drives the county-wide economic strategy focusing on "talent as currency" and downtown occupancy .
- Travis Brown (County Public Works Director): Manages the $9.8M Capital Penny funds allocated for city road improvements .
Active Developers & Consultants
- Taft and Gibbs / Income Investments: Active in large-scale multi-family redevelopment (Beaumont Mill) .
- John Bauknight / Andrew Babb: Local developers focused on downtown adaptive reuse and specialty retail .
- Lat Purser and Associates: Involved in significant townhome developments along the Rail Trail .
- McMillan Pazdan Smith: Frequent architectural and design representative for "Project Core" and parking structure phases .
Analysis & Strategic Insights
- Industrial Pivot: The failure of light manufacturing at the former Pepsi site suggests that pure industrial uses are being deprioritized in the city core in favor of "white-collar" corporate headquarters and high-density residential .
- Entitlement Friction: Developers of logistics or signage-heavy projects should expect high friction. The billboard moratorium and sensitivity to truck traffic/parking indicate a tightening of "non-conforming" commercial uses.
- Incentive Availability: Multi-County Industrial Park status is currently the city's preferred mechanism for granting tax abatements to diverse project types .
- Infrastructure Opportunity: The doubling of the road resurfacing pace via the Capital Penny tax provides a unique window for developers to coordinate site-access improvements with scheduled municipal work .
- Watch Items: Monitor the late 2025/early 2026 release of the new zoning ordinance RFP results and the final location decision for the relocated clock tower , which will signal the council's future stance on balancing development with historic preservation.