City Council approves development agreement for former Montgomery Ward building

At their meeting on Monday, Spartanburg City Council voted 6-0 to approve a development agreement for the redevelopment of the building at 111 E Main St., once home to Montgomery Ward department store, and the adjacent space at 109 E Main St. The redevelopment project, announced several years ago, had been delayed due to high interest rates and issues with nearby utilities that needed to be resolved.

The $18 million mixed-use project is expected to include more than 7,000 square feet of ground floor retail space and between 22 and 26 apartment units, revitalizing a historic building in Downtown Spartanburg that has been vacant for decades. Along with the former department store, the property at 109 E Main St., which currently only houses a building facade, would see a new five-story building constructed. In his presentation to City Council, City Manager, Chris Story touted the possibility of a "regionally known" major retailer for the development's commercial space, though no public announcement could yet be made.

Plans show the former department store's exterior maintaining its historic form, paired with a large courtyard space behind the new structure at the 109 E Main property, allowing natural light for the development's apartment units. The project is expected to begin construction in the second quarter of 2026, in anticipation that interest rates will continue to fall. Terms of the development agreement include a fees-in-lieu of property tax component, with the first year beginning at $36,500 and escalating annually until reaching $193,400 in its 20th and final year.

In other business, City Council unanimously approved second reading for a municipal hate crimes ordinance. With the move, Spartanburg becomes the 23rd municipality in South Carolina to approve such an ordinance.

The new ordinance can be applied under two conditions: First, a person must be charged with violating an existing city ordinance or state crime triable in the City's Municipal Court (such as vandalism or assault). Second, the underlying offense must be committed with the intent to harm, injure, or cause damage to someone based on their ethnicity, race, color, creed, national origin, religion, ancestry, sexual orientation, gender identity, or physical or mental disability. The additional misdemeanor charge will be called Hate Intimidation and will carry a maximum penalty of $500 and/or 30 days in prison.

Council also voted 6-0 to approve a settlement agreement related to a lawsuit regarding previous plans to remove the downtown clock tower and create an exhibit to house the historic clock mechanism and bell within the new City-County joint government complex. Under the new terms of the settlement agreement, the clock tower will be disassembled and reconstructed at a future location to be determined by City Council. Full terms of the agreement are as follows:

A. The Clock Tower will no longer exist at its current location; and

B. This will be accomplished by removing it, saving several bricks, the clock, the bell, the clock and bell mechanics, the plaque, and the peak (hereinafter the "Historical Elements"). The new location of the Clock Tower will include the appropriate Historical Elements.

C. The new location of the Clock Tower will be selected by City Council after a study involving available and feasible locations and public input.

D. The City will in good faith move the project forward in a manner consistent with prudent city planning, construction, design, and implementation principles.

E. The City will save several bricks for commemoration purposes.

For more from Monday night's City Council meeting, follow this link to view the full video.