Shell Building Pilot Program

Overview
The North Carolina General Assembly provided $10 million to the Golden LEAF Foundation to implement the Golden LEAF Shell Building Pilot Program. 

Under the authorizing legislation, governmental and charitable nonprofit entities in Ashe, Bladen, Columbus, Franklin, Halifax, Robeson, and Scotland Counties are eligible to apply for funding. The program is intended to provide grants to increase the number of available, publicly-owned industrial buildings suitable for new or expanding businesses, other than retail, entertainment, or sports projects.

Use of Funds
Funds may only be used for:

  • Identifying potential industrial sites 
  • Grading, clearing, and other site preparation activities
  • Planning, design, other pre-construction and construction activities for shell buildings

Match required
Each award requires a match of $1 of non-State funds for every $3 of State funds. See the FAQs, below, for additional detail regarding the required match. 

Process Overview
The application is a two-stage process. Stage 1 funding will be used to develop a Preliminary Design Package for the building and for related due diligence requirements. A link to a document with the required due diligence items and elements of the Preliminary Design Package are available Shell Building Pilot Program Resources and Documents. All projects must submit a Stage 1 application to be eligible to continue to Stage 2. Stage 2 funding will be available to complete planning, design, and other pre-construction activities, and for construction of the shell building.

It is the intent of the program that funds will be awarded equitably among eligible counties; however, Golden LEAF will consider the merits and competitiveness of applications received, which may result in differences in total amounts awarded among counties. Golden LEAF will also prioritize awards based on the number of appropriate sites in a community and the number of available shell buildings. Funded projects must be reasonably anticipated to result in the creation of new jobs. There is $10 million available for the program. (Golden LEAF may use up to $100,000 of the available funding for administrative costs.) The maximum award for any project is $2.5 million, and Stage 1 and Stage 2 expenditures of awarded funds will both count towards that maximum.

Definitions and FAQ

Program Requirements

  • Governmental entities and charitable nonprofit entities located in Ashe, Bladen, Columbus, Franklin, Halifax, Robeson, and Scotland Counties are eligible to apply. (Golden LEAF does not anticipate making more than one award per county.)
  • The site and the shell building must be owned by an eligible entity. 
  • Successful applicants will be able to show a plan for economic development and how constructing a shell building will further the goals of that plan, including specifically that the shell building is reasonably anticipated to result in the creation of new jobs.
  • The applicant must provide a match of $1 of non-State funds for every $3 State dollars.
  • The applicant must show the intention to provide the match and other funding necessary to complete the shell building project.
  • Funds must be encumbered by December 31, 2025.

Shell Building Requirements

Applicants should determine proposed building characteristics based on industry demand in the community. Industry demand should include an analysis of businesses that have actively considered expanding or locating in or near the applicant’s community. In addition to the size of the building and ceiling heights, elements to consider include potential truck traffic, the number of loading docks, the anticipated amount of office space, expected utility demand, expandability of the building, etc.

Minimum Building Requirements

Shell buildings must meet the following requirements:

  • New construction, without a known or intended occupant, designed to accommodate build out to suit a future owner or tenant
  • Minimum 30,000 square feet unless the applicant demonstrates demand in or near the applicant’s community for smaller buildings. (Golden LEAF does not anticipate awarding funding for buildings of less than 20,000 square feet.)
  • Minimum 30’ ceiling height unless the applicant demonstrates demand in or near the applicant’s community for buildings with lower ceiling heights.
  • Gravel floor
  • Presence of water, sewer, and electrical service at or in the immediate vicinity of the site in quantities that are reasonable in relation to expected uses of the proposed building 
  • Graded gravel parking lot 

Additional Building Elements

Applicants may include elements in addition to the minimum requirements in their project , e.g., finished floors, paved parking, landscaping, ability to expand the building, etc.

Application Process

Stage 1

Applicants will submit information about the proposed site for the shell building, including location, ownership, and available utilities. Applicants may also provide information about due diligence completed on the site to date. Applicants will also provide information about industry demand for buildings in or near the applicant’s community, the number of appropriate sites in the community, and the number of available shell buildings. Applicants will also establish expected outcomes, including the number of new jobs expected to be created at the site within five years.

Applicants may submit separate applications for more than one site during Stage 1 to allow Golden LEAF to help the applicant identify a preferred site; however, Golden LEAF will not make more than one Stage 1 award to an applicant. Grantees will use the Stage 1 awards to conduct additional due diligence on the site (if needed) and create a Preliminary Design Package for the shell building that meets Golden LEAF requirements. Stage 1 awards are not expected to exceed $50,000 (not including the required match). 

A link to a document with a list of required due diligence items and elements of the Preliminary Design Package that will be required with the Stage 2 application is available in the Shell Building Pilot Program Resources and Documents

All projects must submit a Stage 1 application to be eligible to continue to Stage 2.

Stage 2

In Stage 2, Stage 1 grantees will submit the Preliminary Design Package funded in Stage 1 and all required due diligence items. At the conclusion of Stage 2, Golden LEAF will make awards to selected applicants for remaining due diligence, construction of the shell building, and associated costs. Not every entity that submits a Stage 2 application will necessarily receive a Stage 2 award.

A link to a document with a list of required due diligence items and elements of the Preliminary Design Package that will be required with the Stage 2 application is available in the Shell Building Pilot Program Resources and Documents

Program Timeline

Applications for Stage 1 of the Shell Building Pilot Program are due by noon on December 28, 2023. Stage 1 decisions will be made February 1, 2024. Applications for Stage 2 will be due by noon on June 3, 2024, with decisions made August 1, 2024. All applications must be submitted through the Golden LEAF online application portal. A link to the application portal is available in the Shell Building Pilot Program Resources and Documents

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