Gastonia's downtown becoming harder to ignore

Jim Morasso had already put down successful restaurant roots at multiple other sites in metro Charlotte when a historic building in downtown Gastonia caught his attention in early 2015.

A previous eatery in the city-owned Webb Theater had failed, and local leaders wanted to find a proven candidate to give it another go. They struck a deal with Morasso to refurbish the structure and open a new venue there, in exchange for selling the property to him and getting it back on the tax rolls.

Friends from outside Gaston County questioned Morasso’s interest in making the space a destination, reasoning that “nobody’s going to go to an old mill town,” he said. But he saw something in downtown Gastonia that others didn’t.

“You walked down here, and the city wasn’t really defined, but it had a great past,” he said. “I could envision where it was and also where it could go.

“If you build something and do a good job, people will come.”

By all accounts, Webb Custom Kitchen has evolved into a culinary gem at 182 S. South St. in the last four years. And in that time, a tidal wave of other development projects have either been announced, started or completed in the historic business district, demonstrating a level of confidence in the imminent rebirth of downtown.

Credit for much of the recent enthusiasm largely goes to the city’s ongoing establishment of the 16-acre Franklin Urban Sports and Entertainment District, which will feature a multipurpose events complex flanked by a variety of mixed uses including residential and commercial space. FUSE’s proximity just a few blocks west of downtown has unquestionably influenced much of the new activity, said Gastonia Economic Development Director Kristy Crisp.

“We’ve got projects in the works now with an estimated total investment of $60 million over the next two years,” she said. “That’s just with potential projects in our downtown core. So the impact FUSE is having there is certainly significant.”

Morasso, for one, has even doubled down, buying two other significant properties along Main Avenue in the past two years and making plans to redevelop them. But he said he’s been happy to see other investors also coming to the table in the heart of Gastonia.

“A lot of people see it now and are taking the risk,” he said.

Major ventures on the horizon

The noteworthy projects coming together downtown run the gamut, but here’s a quick summary of the ones getting the most attention:

• Kuester Development of Fort Mill, South Carolina, plans to buy a small piece of city-owned green space at 147 W. Main Ave. and replace it with a $25 million multi-family housing complex. Center City Crossing will have upward of 100 apartments within seven stories and serve as the first major residential project of its kind downtown.

• Morasso has acquired the former Citizens National Bank property at 212 W. Main Ave. from the city, and has begun redeveloping all 37,000 square feet over four levels. The highlight of the multi-million-dollar project will be a first-floor restaurant to be called The Fed. But the upper floors will also include condominiums, a Thermador cooking and wine demonstration center with classrooms and teaching areas, a cocktail lounge, banquet space, and more.

• Within the historic Lawyers Building at 168 W. Main Ave., owner Nathan Kirby is continuing a multi-year, multi-million-dollar effort to develop a 35-room boutique hotel known as The Esquire. While the hotel itself is still a work in progress, the long-awaited restaurant on the first floor, Barrister’s, opened last month.

• At the Rotary Centennial Pavilion, where South Street meets Main Avenue, the city plans to partner with a local Rotary Club to expand the plaza and add more green space to essentially create a new park downtown. Plans call for constructing a grassy common surrounded by shade trees, and installing bathrooms, public art and other new amenities to attract people of all ages.

• Christopher Davis earlier this year spent $165,000 to buy a former auto repair and gas station on a prominent corner at 110 S. York St. He is now investing tens of thousands of dollars to renovate it and relocate his popular Pita Wheel restaurant there from Dallas, making it into a family-friendly venue with both indoor and outdoor seating.

Laying the groundwork

Webb Custom Kitchen is an example of an investment that has already proven successful of late. But it’s not the only one.

• In 2016, Dickson Shreffler spent more than $1 million to buy and renovate the three-story Kress building at 111 W. Main Ave. The 34,000 square feet there has been transformed into the second Sleepy Poet Antique Mall location. Shreffler and his partner, Tracy Wright, have become so rooted in the community since then, they recently bought and moved into a nearby historic home on Second Avenue, which they have turned into a bed and breakfast called the York Chester Inn.

• Also in 2016, Scott Cavendish spent $225,000 to buy a former auto dealership and most of the city block surrounding it at 207 N. Chester St., at the northern gateway to downtown. He has since invested well over $1 million to open Cavendish Brewing Co., which has become increasingly popular while enjoying healthy growth during two and a half years of business.

Such activity has made more people pay attention to what’s going on in the area. Michael and Felicia Nelson are a good example, as they spent almost seven years operating Gamer EMT as a successful electronics repair business on the fringe of downtown.

But when the opportunity arose this year for the couple to relocate into a storefront at 118 E. Main Ave., they jumped at it.

“We had never discussed moving from our current space, but something about the windows, the lighted lamp posts and hometown feel of Main Avenue really piqued our interest,” said Felicia Nelson. “I follow a lot of organizations and downtown businesses on social media, so I know the downtown district is flourishing. And we decided we wanted to get in on it.”

Tools of the city

Crisp said projects like Center City Crossing have been cause for greater celebration because of the influx of residents it will bring downtown. But the wave of overall growth has also triggered more activity among small businesses, she said.

“We have existing downtown business owners who’ve been able to expand,” she said.

One thing that Crisp believes is proving to be an effective vehicle of assistance for downtown businesses is the city’s IDEAL program. It primarily provides façade grants for businesses, reimbursing them for physical work that has already been completed.

The city budgeted $60,000 for the grants this fiscal year, and last month approved six grants totaling almost $42,000. But what has changed, said Crisp, is that the city’s investment in each case is only a fraction of the overall amount the property owner is spending.

“I’ll point to the Pita Wheel as an example,” she said. “(Christopher Davis) is investing $36,000 in façade work there, and we’re spending only $10,000. We’re seeing those (private) investment amounts grow, which was certainly the goal of the program. What we’re putting in is only a fraction of what other building owners are starting to invest.”

The city has also put $100,000 into a revolving loan program aimed at helping downtown property owners with larger building revitalization projects. The idea is to lend some of that money to qualifying business owners, who will pay it back in a short term at low interest, continually replenishing the fund.

Inspiring investor confidence

Crisp said signs point to downtown Gastonia growing at every level, with businesses of every size making for an increasingly well-rounded commercial climate. And the city is interested in engaging with people and entities that want to find a way into downtown, she said.

“Developers and investors are choosing to be here," she said. “We have investment tools available for them, such as making sure downtown is in an opportunity zone, and finding ways to use new market tax credits. Our goal is to really work with people to make it very easy for them to come in and invest.”

Investors seem to be taking note, and several have said they are being explicitly motivated by the city’s willingness to capitalize on the natural migration of western growth from Charlotte. Faison Kuester, CEO of Kuester Development, said the city’s investment in the FUSE District has everything to do with his interest in building the Center City Crossing apartment project downtown.

“It’s great to see FUSE moving forward,” he said in August. “I’m not sure we’d be here if not for that.”

The progress being demonstrated between downtown and the FUSE site is also carrying over into development interest outside that immediate area. Charlotte-based U.S. Developments is involved in negotiations to buy Eastridge Mall and invest $100 million to $150 million to spearhead new commercial and residential construction on land now occupied by a huge parking lot.

Stephen Rosenburg, the founder, president and CEO of U.S. Developments, said their confidence is being bolstered in part by the city coaxing along growth.

“I think the city’s doing a lot for downtown. As you know, I-85 is going to be widened,” he said. “And I believe the (light rail transit line) will eventually run right down Franklin Boulevard from the airport and from Charlotte. The future growth characteristics of the county and city are amazing.”

‘A life of its own’

Gastonia native Tom McPhaul, a commercial real estate broker with a Main Avenue office, has made downtown a core of his business in recent years. He has attracted outside investors who have bought a number of downtown buildings and begun renovating and breathing new life into them.

McPhaul said the signs of an explosion of growth downtown are everywhere.

“I always say it only took us 40 years to get here,” he said. “I think it’s definitely undeniable that what we’re getting ready to see is a whole new level of expansion. We’ve been tasting it one building at a time, but there’s some major stuff that’s building up to something here.”

McPhaul said he still frequently encounters naysayers who still don’t believe in downtown, and when it comes from fellow Gastonia natives, it’s as frustrating as it is disheartening.

“It takes a lot of money to do what we’re talking about down here,” he said. “Like my mom used to say, this has been like a duck paddling underneath the water. It looks real calm on the surface, but the feet are paddling like crazy.”

McPhaul is helping to oversee the renovation and conversion of a retail strip right at the Main Avenue/South Street intersection, where a wine shop and two other businesses have already opened this year. As more people move downtown, such as into the historic Trenton Mill as part of the FUSE project, he believes other long-awaited amenities will follow, such as a grocery store.

“The (Center City Crossing) apartments are going to be huge,” he said. “You combine that with FUSE, and that $15 million project at the Trenton Mill, and you’re talking about game changers.

“What I’m seeing is that we’re really coming together as a community, because of a lot of new people coming into town who want to be a part of it. All of this activity is just marching on daily, and it’s taking on a life of its own.”

You can reach Michael Barrett at 704-869-1826 or on Twitter @GazetteMike.