The Industrial Development Authority plans to buy the White Mill property — including the building — for $3 million.

Danville City Council will hold a first reading on whether to appropriate $1.5 million from its general fund for the IDA to purchase the property during council’s upcoming meeting Tuesday night.

The IDA board voted to purchase the property during its meeting Tuesday.

The purchase agreement calls for a first payment this year and a second $1.5 million to be paid in 2017-18. The IDA would buy eight parcels totaling slightly more than 20 acres, City Manager Ken Larking said Wednesday.

One parcel totals about 18 acres and the remaining pieces are small properties, Larking said.

In addition to the $3 million, $50,000 will pay for due diligence — property analysis — that must be complete by May 15, Larking said. Closing is expected by June 15, he said.

The IDA will cover the cost of due diligence, Larking said.

Officials believe a planned Riverfront Park would help attract businesses and industry to the property. The park would be built on four acres between the White Mill and the King Memorial Bridge across from the YMCA.

“Development potential along the river is of great importance to the city and our economic development office has identified that [control of the site] as a key step toward developing a world-class riverfront development in our city,” Larking said Wednesday.

The IDA and the city see those parcels along the river as critical for future economic growth of the area, said Neal Morris, IDA board chairman.

With the park planned in the area along the King Memorial Bridge, purchase of the White Mill property will give the city and the IDA all the property between the Union Street and MLK bridges, Morris said. “That’s really a nice piece of property through there,” Morris said.

The White Mill building is 650,000 square feet. It was constructed in 1920 and was part of Dan River Inc.

White Mill Development LLC, a subsidiary of Spartanburg, South Carolina-based Gibbs International, bought the property in 2009 and announced it was bringing 400 high-tech jobs to the city.

The total purchase price of the eight parcels was $2.4 million plus closing costs, according to the city of Danville. In addition, Gibbs spent $1.5 million to abate asbestos and lead paint in the White Mill itself and other structures that were eventually demolished. In total, Gibbs spent more than $4 million for the purchase, cleanup, demolition, legal fees and closing costs, according to the city.

The company promised to bring the jobs and $400 million in capital investment to the project over five years, but the plans never materialized.

If the purchase goes through and the city appropriates money for it, city staff will oversee a master plan process for the site. It would include public input on how to redevelop the properties, Larking said.

The city would market the site aggressively to developers for possible development of the White Mill and adjacent property, Larking said.

City officials will seek funding from a variety of sources to pay for the purchase, he said.

“However, until those funding sources are confirmed, it is recommended that general fund balance be used to pay for purchase,” Larking wrote in a council packet letter to council members.

The IDA is tasked with supporting economic development goals and objectives for Danville. The authority buys and develops industrial land and downtown properties, and acts as a conduit for incentives for projects. The IDA has led downtown redevelopment by acting on recommendations from the 2011 River District Development Plan and acquiring and redeveloping projects in the River District.

Larking said people have inquired about the property but there are no solid prospects for the site.

Linwood Wright, consultant for the city’s economic development office, said of the plan to purchase the site, “It is a very positive move for the city and gets control of major property along the river, which is probably one of the greatest assets the city has.”

Dell’Anno’s Pizza Kitchen on Main Street downtown has seen more customers during its lunch rush since Spectrum Medical opened in the River District Tower last week. A new riverfront could bring even more business if it’s built at Main Street and Memorial Drive, said the restaurant’s manager.

“It will be more people coming with kids,” said Dell’Anno’s manager Fabian Martinez. “After they play, they will get hungry.”

In the two weeks since Spectrum relocated to the River District Tower with its more than 85 employees, Dell’Anno’s has seen a 15-20 percent increase in customer volume during lunch, Martinez said.

Regional leaders and at least one business owner also see great potential for a riverfront park.

Sarah Rodden, owner at Lizzy Lou Boutique at Main Street and Memorial Drive, said it would bring more people downtown.

“A lot of people would come to the park who haven’t been here in a long time,” Rodden said. “The more things that are popping up downtown, the more interested people become [in the River District].”

Spectrum employees have brought more business at Lizzy Lou since the facility opened on Feb. 27, Rodden said.

DHM Design, Inc. presented a conceptual plan for the park to Danville City Council during a special work session Tuesday night. The project would cost about $3.8 million, according to the plan’s estimate.

The plans include “a very engaging public space that includes a splash pad/waterplay area. From there, a cascading water wall leads to steps and lawn terraces that face the Dan River and partially encircle the much larger community lawn area. The oval lawn is large enough to throw a Frisbee, hold a community concert, host the Flag Day event, and stage Food Truck Rodeos,” according to the concept.

The plans also call for highlighting the architecture of the Martin Luther King Jr. Memorial Bridge. Possible lighting of the bridge could extend the park’s effect across the Dan River to attract visitors to the space, according to the plan.

A trail extension cutting across the park’s northern boundary would connect at the parking area and trailhead at Main Street Plaza, according to the plan.

“This trail extension is designed extra wide and of a more unique pavement material in order to act as a promenade that allows casual visitors to overlook the water surface and its activities,” according to the plan.

A promenade — on the side that would face the river — would fall away into a series of concrete steps allowing users to sit close and touch the water, according to plans. The idea is to “pull the river back into the landscape,” according to a designer.

A proposed multi-age play place, a kayak/canoe put-in and a small parking area would be at the western end of the park.

In a separate conceptual design study, Lyons, Colorado-based S20 Design and Engineering proposed three possible types for a whitewater park at the site.

Those include:

» A river-wide drop structure crossing the entire river and providing three separate chutes forming waves;

» A bypass channel along the west bank of the river and separated from the main flow by a berm. The channel would extend from the historic dam downstream most of the want to the Main Street bridge;

» An out-of-the-river canal extending from a canal to the proposed riverfront park, discharging back into the river just upstream of the Main Street bridge.

“The [riverfront] park and park concept can be a major boost to our River District economy, especially if we can develop some type of whitewater activity, with rafting, tubing or canoeing,” said Danville Mayor John Gilstrap.

The spray pool and lawn-area barriers to keep one group of people from dominating the area are especially appealing, Gilstrap said.

However, parking is a concern since the concept offers only a little more than 10 new parking spaces, he said. An area with a capacity of 500 people — the park’s capacity — would need about 150 parking spaces, he said. But there is parking close by — within two blocks, Gilstrap added.

He supports removal of the nearby Long Mill Dam, which would yield the most advantages and the fewest drawbacks, he said.

Parks and Recreation Director Bill Sgrinia said of the plan, “I like the concept of the park overall. It’s well thought out and does take into consideration the public input that was part of the process.”

“I was hoping people would be able to interact with the river,” he said.

Sgrinia also likes the way the shelter is angled to take in the backdrop of the Martin Luther King Jr. Memorial Bridge.

The park is designed to invite people into the space, he added.

Laurie Moran, president of the Danville Pittsylvania County Chamber of Commerce, said the creation of spaces that attract families will enable the region to “make a significant impact on the quality of life and economy of our region.”

“The proposed riverfront park has the potential to connect business recruitment, retention and tourism,” Moran added. “As we seek to attract employers to this community and as employers seek to attract employees to this region, it is important that we are showcasing our community as a great place to live and work. From the tourism perspective, people who are visiting our area are looking for spaces where they can relax, enjoy and experience the great assets we have to offer. The riverfront park has this possibility.”

Karl Stauber, president and CEO of the Danville Regional Foundation, sees the park as one of the next major steps in the River District as an economic development and tourism draw. However, it’s “also … a way of demonstrating to people here and people elsewhere what excellence looks like and the fact that we can create excellence.”

The new Danville Family YMCA is an example of that excellence, Stauber said.

“The community could have built a much cheaper Y … and it wouldn’t have been nearly the success it’s been,” he said.

Stauber said he is astounded at the number of people visiting the nearby JTI Fountain.

A new riverfront park will be another magnet for the revitalization of the region and another quality-of-life indicator for people, he added. They will think “this is the place where I want to be,” Stauber said.

“Great communities have great parks,” he said.

Spectrum Medical is set to open its new offices and begin taking patients at the former Dan River Research Building — now River District Tower — at Bridge Street on Monday.

Danville Economic Development Director Telly Tucker said the relocation should increase patronage of downtown businesses.

“It can be exposure for businesses people have not seen,” Tucker said.

The new River District Tower — and Spectrum Medical — is “exactly the type of project we in economic development would like to continue to see,” he added. It’s what city officials expected when they embarked on the River District plan, Tucker said.

Orthopedics, pain management, spinal surgery, rheumatology, physical therapy and clinical research facilities will be under one roof instead of spread out in offices on Executive and Memorial drives — Spectrum’s previous locations.

The new facility will include more than 85 employees, said Spectrum Medical Human Resources Manager Cress Gillie.

River District Development LLC — with Dr. Mark Hermann of Spectrum Medical as president — handled the transformation of the historic building.

Also, Danville Regional Medical Center will move its Family Residency Medical Clinic to the building in April, said LeAnne Roller, DRMC director of physician relations and industry. The clinic is currently located across from the hospital.

DRMC’s Piedmont Surgery Clinic on Executive Drive will also follow in April, shortly after the relocation of the Family Residency Medical Clinic, Roller said.

The hospital’s School of Radiologic Technology will be the last to move into the River District Tower, she said.

DRMC will occupy about 24,000 square feet of space on the second floor and will have about 75 associates including employees, physicians and students, Roller said.

The moves are an opportunity to better serve the community, Roller said. Volume has increased in the two clinics.

“We anticipate more growth in both clinics,” Roller said.

The majority of Spectrum’s employees will park in the 400-space Newton’s Landing parking lot below Bridge Street, Tucker said. Parking also will be available in the 160-space parking deck — the old Acree’s Warehouse building — at 312 Bridge St., Tucker said.

Spectrum Medical’s patients can park across the street from the tower at the 125-space lot at the old Stove Furniture building, Gillie said.

City officials expect congestion, but not an unreasonable volume of traffic, Tucker said.

“Any potential detriment will be offset by the gain in patronage of downtown businesses,” Tucker said.

The River District was once the “heartbeat of the city” and River District Tower will help make it a vibrant business district for Danville, he said.

Developments like River District Tower are why Newton’s Landing — a former industrial dumping ground — was developed, Tucker said. Newton’s Landing became a parking lot in 2008.

Work on River District Tower and Spectrum Medical continued Friday.

“We will be working diligently over the weekend to get it [Spectrum Medical] ready,” Gillie said.

It will be “all hands on deck for the weekend,” Gillie added.

“We’re excited about the move,” she said. “Everything’s brand new — brand new equipment, brand new technology.”

Spectrum Medical will be operating at reduced volume for the next couple of weeks during the transition to the new facility, Gillie said.

“We’re working on a reduced schedule to work out all the kinks and make sure everything is running normal,” she said.

The office usually sees about 100-150 patients per day, Gillie said.

On the first floor of River District Tower are tenant spaces, including one planned for a pharmacy, and an area to be used by the Danville Historical Society as a small museum space highlighting the city’s history. Society member Sonja Ingram said the space will feature exhibits and should be open this year.

The annex on the north side of the building will have restaurant space, with a banquet hall — to be called Canal — on the first floor.

The first restaurant to open will be Cotton at Riverside Mill on the second floor. It is expected to open in June, with the possibility of a second fine dining restaurant or expansion of Cotton in the future.