York County wants funds returned after Panthers’ failed project, bankruptcy filing

York County officials sent a clear message after GT Real Estate Holdings, LLC, announced Wednesday that it had filed for bankruptcy.

Carolina Panthers owner David Tepper specifically formed GT Real Estate for the Rock Hill headquarters site off I-77, north of Dave Lyle Boulevard.

On Thursday morning, York County issued a statement noting the bankruptcy protection lists the county as one of the creditors. That’s because of GT Real Estate’s and the county’s agreement to upgrade a section of Mt. Gallant Road bordering the new headquarters property, according to the county release. The county put up $21 million for the project, the release states.

“We believe those funds will be returned in full with interest, and county taxpayers are protected,” the county said in its news release. “We were prepared for this action, and fully expect a positive outcome for our citizens.”

York County voters approved a $173 million Pennies for Progress campaign in 2003 that includes money for Mt. Gallant. Pennies is a one-cent sales tax to pay for road projects. The 2003 vote would widen a stretch of Mt. Gallant to three lanes, but the Panthers project came in with plans for five lanes.

Rather than do the road work twice, a deal was reached where the county would put in $21 million — the cost of widening to three lanes — as part of the larger Panthers road network upgrades.

“Work there has not started,” county spokesperson Greg Suskin said of the Mt. Gallant project. “We plan to complete that project because it was approved as part of (the prior Pennies campaign).”

Late Wednesday night, GT Real Estate Holdings, LLC announced that it filed for bankruptcy in Delaware “to effect an orderly wind-down of the project” in Rock Hill. Related companies, including the Panthers, Charlotte FC and Tepper Sports & Entertainment, aren’t financially impacted by the filing, the statement said.

Rumblings of a Panthers headquarters site in Rock Hill date back to 2018. By early 2020, the Rock Hill City and York County councils were working through deals described by economic development leaders as having a $2 billion economic impact for the region.

Plans formed for a new interchange off I-77 that’s now under construction between Cherry Road and Dave Lyle Boulevard. Officials with the South Carolina Department of Transportation repeatedly stated that work will continue despite uncertainty in recent months between the Panthers, city and county on the headquarters project.

But in May 2021, the Panthers sent a letter to York County asking for help with funding that the team said Rock Hill hadn’t provided. This spring, the team announced a halt to construction. Then came termination of construction contracts with the city over public funding.

Since construction stopped, Rock Hill maintains it met all obligations required under the agreement with the Panthers.

How did we get here? A timeline on the Panthers project in Rock Hill as contract ends

David Swenson, York County Economic Development director, said more information is needed after Wednesday night’s bankruptcy news before details will come into focus like what might replace the Panthers headquarters, how the site might be marketed for future development or other related details.

“Too early to tell what could go there,” Swenson said.

GT Real Estate in York County

A GT Real Estate representative, who asked to be identified only as a firm representative, wouldn’t comment Thursday morning on what’s next for the Rock Hill site or when future plans might be announced.

The representative said the bankruptcy will end the Rock Hill project, but that the filing only involves GT Real Estate and doesn’t impact David Tepper or the Carolina Panthers.

“This is a company that we set up for this purpose, and that’s basically what we’re looking at,” the representative said.

GT Real Estate owns several properties in York County, but the representative wouldn’t comment on plans for each one.

“The bottom line is, it’s basically the project site,” the representative said of Wednesday’s filing.

County records show GT Real Estate Holdings owns eight York County properties:

▪ The company bought the main headquarters site, at about 215 acres along I-77, in a $16.4 million deal on April 1, 2020.

▪ The company added a connected piece of less than an acre at 194 Mt. Gallant Road the same day, for $200,000.

▪ GT Real Estate bought almost 10 acres at 329 Waterford Park Drive and 14 acres at 2681 Dave Lyle Boulevard in March 2020 for $1.75 million. The properties combine to form the northwest corner of the Waterford Park and Dave Lyle intersection.

▪ In January 2020, the company bought almost 5 acres at Mt. Gallant Road for what would have been an entrance to the Panthers headquarters property for $250,000.

▪ Another property connected to the site acquired in December 2021, more than 2 acres at 228 Mt. Gallant, includes more than 20,000 square feet of storage warehouses.

▪ GT Real Estate acquired 10 acres of property along the Catawba River in July 2020. The property is at 344 Waterford Park Dr.

▪ In July 2020, GT Real Estate bought a more than 22,000-square-foot warehouse site at 280 Mt. Gallant Road, connected to the main headquarters site, for $1 million.

The Panthers group also purchased Waterford Golf Club, though ownership there is listed under a different name. In March 2020, a company called Waterford Golf Club with the same address as the NFL team bought the more than 200-acre golf course for almost $2.3 million.

The Carolina Panthers now own a Rock Hill golf course. The latest on team land deals.

Community blame for Panthers project

Shortly after the Panthers announced the team terminated the construction contract with the city, The Herald asked readers in an online poll for their take on the disagreement — if they blame the Panthers for an unwillingness to work with the city or the city for failing to provide upfront public funding.

Of almost 1,700 votes cast, only two votes separated the options. Each received 39% of the total, with the remaining 23% of votes indicating both sides were equally at fault.

What was clearer among reader input is, they largely still wanted the project to happen. Of more than 1,500 votes, 70% indicated the team and city should continue work toward a deal. The other 30% voted the city should move on and pursue something new at the site.

Poll: Whose fault is Panthers deal breakdown? Should Rock Hill or the team have done more?

This is a developing story. Check back for more.