Reynolds American strikes $1 million parking-deck deal with Winston-Salem

For a company that generated more than $9 billion in profit in 2025, a $1 million payoff to end a quarter-century-old lease on a downtown parking deck might as well be pocket change.

That's not the case for the city of Winston-Salem as it prepares a budget for the upcoming fiscal year while facing higher costs and growing needs - and after already raising taxes for most property owners this year.

For the city, the onetime cash infusion of more than $670,000 from its deal with Reynolds American (the remaining portion of the $1 million will go to Forsyth County) and $300,000 in related annual savings will be welcome developments.

"I think this is a home run for us," Robert Clark, chairman of the City Council Finance Committee, said during a meeting Tuesday. "We will actually be making money versus losing money."

Reynolds owns the four-level, 3-acre facility across North Church Street from its headquarters. However, under the current agreement, the city handles leasing, management and maintenance for the deck.

"Over time, the parking deck has operated at a financial deficit, and the structure now requires increasing levels of maintenance as it continues to age," the city explained in a description of the proposed lease cancelation.

Funding for other facilities

Should the full council ultimately approve the deal, Reynolds will assume all responsibility for the deck and its operations. The company also will control all of the garage's 1,500 parking spaces.

The city now has access to 400 spaces, while 725 are reserved for Reynolds' use.

In exchange, Reynolds is offering the city use of a 133-space surface parking lot across Fifth Street from the deck.

Under the existing agreement, the city would continue to manage leasing and operations of the garage until 2037.

The $670,000 will go into the city's parking fund for potential improvements at other facilities, including elevator upgrades at its deck at Sixth and Cherry streets. The $300,000 in annual savings, meanwhile, would help cover other non-parking costs.

The freeing up of funds appealed to Councilwoman and Mayor Pro Tem Denise Adams.

"I'm not saying that parking decks aren't important," she said. "But we also need to realize the importance of our infrastructure, of the buildings that our citizens and our employees either work in or they visit on the day to day."

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