Cleveland County Secures $89 Million Loan for Justice Center and Solid Waste Improvements - No tax increase Expected
SHELBY, NC – November 30, 2025 – Cleveland County Commissioners have approved an $89 million loan to fund the construction of a new Justice Center and improvements to the county’s solid waste management system. Finance Director Philip Steffen outlined the need for the new facility in a recent memo, stating the current courthouse, built in the early 1970s with additions in the 1990s, is aging and requires replacement to “consolidate critical justice functions into a modern, secure facility designed for efficiency, safety and long-term service.”
The $75 million portion of the loan will specifically finance the Justice Center, including construction, equipping, and demolition of the existing courthouse. Steffen assured the county that this financing was anticipated and integrated into the long-term capital plan. “This financing allows the county to proceed with construction and equipping of the new facility, and demolition of the existing courthouse,” he said. “Debt service on the Justice Center portion is included in the county’s long-term capital plan and will be supported by existing and new revenue streams. Ther is no immediate impact on fund balance.”
The county has already secured over $100 million in state funding for the project and has $19 million in capital reserves allocated. Mitch brigulio, Senior Vice President of Davenport, explained the loan represents the final component of the total project cost. “We’ve been working with staff to structure the financing,” Brigulio said, describing it as “essentially, a mortgage on the justice center.” The financing received approval from the Local Government Commission on november 13th, releasing the funds for both projects.
The remaining $14 million of the loan will be dedicated to solid waste improvements, including expanding the landfill, adding a new cell, and purchasing necesary equipment, according to steffen.
Crucially, county officials have stated the loan will not result in a tax increase for Cleveland County residents. Steffen confirmed, “The $89 million loan will not affect taxpayers, and there will not be a tax increase.”
Commissioner Doug bridges, who has served on the board for eight years, emphasized the urgent need for the new jail. “The one at the current courthouse upstairs, it was very close to being condemned so we had to do somthing,” he stated. “We talked about doing a little construction and kicked it down the road, but we really need a new jail, new courthouse.” He anticipates the new facility will serve the county for at least 75 years.
While the main jail annex on McBrayer Street in shelby is slated for closure, some concerns remain about the capacity of the new Justice Center. Commissioner Johnny Hutchins expressed doubt that the new facility will be sufficient to house all inmates,suggesting the annex may need to remain in use for a short period. “We might have to use the annex for a short period of time,” he said.
Construction of the Justice Center is expected to be substantially completed by fall 2026, with full project completion anticipated by mid-2027. The project will be completed in two phases: the initial construction and staff move-in, followed by the demolition of the existing courthouse and construction of the front plaza and parking areas.
