Page 21 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

DOWNTOWN DEVELOPMENT

Downtown is now home to 2,250 residents — more than triple the 75-room boutique hotel that will bring the 1927 Pepper Building
number in 2010 — who live in housing developments in or near back to its former art deco glory, including the revival of the Sir
the area. More residential options are on the horizon, with Winston Steakhouse and Martini Bar on the rst oor and the
construction underway on 344 apartment units in Innovation Prince Albert restaurant and bar in the basement. In a green space
Quarter and another 229 on the western end of downtown. adjacent to the building, developers Mayfair Street Partners will
be enhancing an existing public space by adding restrooms and
Downtown Winston-Salem has become a thriving neighborhood
and social scene. Sidewalks bustle every night of the week with sidewalks. Mayfair will receive $4.6 million in assistance for this
project, to be known as Merschel Plaza in honor of former City
thousands of residents socializing, walking dogs and visiting an
array of restaurants o ering food as diverse as pizza, gourmet food Council member Wanda Merschel.
cooked with locally sourced products, and ethnic foods including Downtown development, as well as recruitment of new business
Mediterranean, Thai, Vietnamese and Mexican. Sweet Potatoes, a to the City as a whole, has largely resulted from the leadership and
downtown restaurant serving Southern classics such as fried okra, strategic moves of the City Council and the Winston-Salem Alliance,
three-cheese macaroni, and cornbread accompanied by a cold a non-pro t alliance headed by Mayor Allen Joines, with
glass of buttermilk, has received accolades in national publications. membership that includes some of Winston-Salem’s most in uential
The increase in restaurants and entertainment venues downtown has companies and organizations. Other key players have included the
in part been the result of a special emphasis by the City’s Small Winston-Salem Chamber of Commerce; the Downtown Winston-
Business Loan Program, which can be used to help nance restaurants Salem Partnership; and Winston-Salem Business, Inc., which is
when the applicants demonstrate a need for City assistance. charged with external economic development.
A historic landmark of downtown is the Kimpton Cardinal Hotel, The Downtown Partnership also manages enhanced services that
once the headquarters of Reynolds Tobacco Co. The building, ensure a high standard for cleanliness and safety in downtown.
known as “The Grand Old Lady” in Winston-Salem, was the A Downtown Winston-Salem Business Improvement District,
architectural inspiration for the Empire State Building in New York. which covers 60 blocks, is overseen by an 11-person advisory
It now includes 174 guestrooms, 36 suites, and The Katharine committee of various downtown stakeholders. The BID collects
Brasserie and Bar on its lower six oors. The hotel’s upper oors fees of 9 cents per $100 of valuation on real and personal property
have been converted into 120 rental units. to pay for extra services focused on ve primary goals: a cleaner
environment, increased safety and security, stronger marketing and
Under construction now are a 119-room Hampton Inn and Suites,
a 126-room Courtyard by Marriott, and a Hotel Indigo that will be promotion, accelerated development, and an enhanced physical
located in the long vacant Pepper Building. The Indigo plans a appearance for downtown.

2018-2019 City Budget and Improvements

The City Council approved a $530 million budget for 2018-2019, April 2019 from $11.25 per hour to $12.50 per hour, with a goal
an increase of $48.8 million over the previous year. The budget of achieving $15 an hour by 2021, according to City Manager
allocates $363 million for operations, $42 million for debt service Lee Garrity.
and $125 million for capital improvements. The property tax rate In spring 2018, the City-County Utility Commission approved
remains the same, at 59.74 cents for every $100 of value.
a 3.5 percent increase in the water rate and a 5 percent increase
In November, voters will be asked to approve $122 million in in the sewer rate, and the bimonthly service charge for residential
general obligation bonds. If passed, the bonds would require a water and sewer service would increase by $1.41 per month.
property tax increase of about 4 cents per $100 of value.
The rate changes will support the utility commission’s $45.5
Last year, about half of all City employees received raises to bring million budget for operations, $51.5 million for debt service and
them up to the market rate for their positions; the proposed a $114.7 million budget for capital improvements, the largest
budget would bring the other half up to market rate or provide being a $55 million upgrade to the Neilson Water Plant. With the
a raise of at least 2 percent. These pay raises will take e ect rate increase, the monthly cost for the average household user
April 1, 2019. The City’s minimum wage for its workers will rise in will go from $46.75 to $49.69.

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