CHARLOTTE, N.C. — The Carolina Panthers have terminated contracts with the City of Rock Hill for the construction of the new team headquarters and practice facility, according to a statement released Tuesday.

A spokesperson with GT Real Estate Holdings, LLC, which has been representing Tepper Sports & Entertainment, said the city has “failed to issue the bonds or provide funding for the public infrastructure for the project.”

In 2020, the city had reportedly agreed to issue $225 million worth of bonds to cover public infrastructure costs related to the facility’s construction.

Related: The Rock: Panthers new headquarters takes shape in Rock Hill

The statement says the city of Rock Hill became delinquent on its obligation on February 26, 2021, and failed to uphold its side of the deal, despite GTRE's persistent efforts throughout 2021.

“On March 18, 2022, GTRE issued a default notice and the City did not cure its default within the prescribed 30-day cure period,” the statement said. “It is unfortunate that some recently decided to conduct a misguided, destructive public relations campaign to obscure their failures.”

GTRE says notices formally terminating the previous agreements have been sent to the city, but it's prepared to discuss the “significant challenges ahead” with city and other interested parties.

Tuesday afternoon, the city of Rock Hill released the following statement on the matter:

"The City of Rock Hill joined state and county leaders and the greater community in welcoming the Panthers to Rock Hill and shared in the excitement over Mr. Tepper’s idea of “two states, one team.” Over the past three years, City staff and local elected officials have invested countless hours negotiating agreements and working to perform the City’s part of the agreements to make this a successful development for both the Panthers and the Rock Hill community.

We are disappointed with the current dispute and with the decision of the Panthers to halt the Rock Hill development, thus undermining the exhaustive efforts of the City of Rock Hill, State of South Carolina, York County, Rock Hill Schools, key landowners, and the entire region. It was and remains our intention to continue negotiating in good faith while protecting the interests of our taxpayers.  In fact, in the past few weeks we have attempted to meet with the Panthers on numerous occasions to no avail. 

The City met all obligations required under the agreements. The City did not commit to provide unlimited City backstop, but instead agreed to use its best reasonable efforts to issue bonds to be repaid by the increase in the tax revenues generated from development of the site which protects the City’s taxpayers and the City’s favorable financial position. As set forth in the parties’ finance agreement, the City was not required –

to pledge, use or contribute any City funds, revenues or assets to the repayment of the Bonds beyond the Panthers Fund Proceeds, Reserve Funds derived from proceeds of the Bonds, together with capitalized interest, if any, or [municipal improvement district (MID)] assessments imposed in accordance with the MID Governing Documents; and … the City’s reasonable best efforts to issue Bonds shall not be construed as an assurance or guarantee by the City that there will be a buyer for any of the Bonds.

As Mayor John Gettys has said,

Our community embraced the Panthers and welcomed them to South Carolina. Be assured the City of Rock Hill did everything to make this project a success and has not defaulted on any of our obligations…that is not how we do business.

The City does not believe in addressing, through a public back-and-forth, its differences with another party. We are encouraged the Panthers may now be willing to meet and look forward to resolving any and all outstanding issues so that we can together fulfill the promises implicit in the “two states, one team” ethos. From our standpoint, we are prepared to meet as early as today.   Accordingly, this will be the last public statement from the City regarding the most recent misleading and erroneous statements from the Panthers."

South Carolina Governor Henry McMaster signed a bill in 2019 that included up to $120 million in tax breaks for the team, exempting them from paying state income taxes for players, coaches and other employees for 15 years.

The 240-acre facility, located just over the North and South Carolina state line, was scheduled for completion in 2023.