Charlotte City Council
Housing and Neighborhood Development Committee
Summary Meeting Minutes
July 9, 2007
COMMITTEE AGENDA TOPICS
I.
Double Oaks Redevelopment Proposal
COMMITTEE INFORMATION
Council Members Present:
Susan Burgess, Anthony Foxx and Don Lochman
Council Members Absent:
Michael Barnes and Pat Mumford
Staff Resource:
Julie Burch, Assistant City Manager
Staff:
Others:
Stanley Watkins, Neighborhood Development
Richard Woodcock, Neighborhood Development
Stan Wilson, Neighborhood Development
A. C. Shull, Economic Development
Greg Gaskin, City Finance
Scott Greer, City Finance
Keith MacVean, Planning Department
Pat Garrett, The Housing Partnership
Lee Cochran, The Housing Partnership
Fred Dodson, The Housing Partnership
David Howard, The Housing Partnership
Meeting Duration: 11: 40 a.m. – 12:55 p.m.
ATTACHMENTS
Agenda Packet – July 9, 2007
Housing and Neighborhood Development Committee
Meeting Summary for June 18, 2007
Page 2
DISCUSSION HIGHLIGHTS
Double Oaks Redevelopment Proposal
Pat Garrett, President of The Housing Partnership, provided an overview of the proposed Double
Oaks redevelopment proposal. Ms. Garrett explained that the proposed redevelopment is an
excellent opportunity to provide work force housing in close proximity to Uptown Charlotte. Ms.
Garrett explained that two-thirds of the existing 576 apartments are occupied and The Housing
Partnership will provide relocation assistance to all existing residents. She informed the Committee
that the redevelopment proposes a mixed use and mixed income development on a 98 acre site, which
will include market-rate and affordable apartments, market-rate, for-sale single family homes, town
homes and condominiums. The project is projected to cost $58 million and generate over $120 million
in development and will be phased over a 10-year period. Committee member Foxx asked if the rental
affordable units will be made available to those with incomes at or below 30% of the Area Median
Income (AMI)? Ms. Garrett answered that 75 of the total 300 affordable rental units will be
available for those at 28% to 30% of AMI.
Stanley Watkins presented information on the developer’s financial proposal and proposed City
financing options. Mr. Watkins explained that The Housing Partnership is requesting $26.7 million in
financial assistance from the City of Charlotte in the form of grants ($11,745,050), loans and loan
guarantees ($15,000,000). Mr. Watkins explained that a Section 108 Loan guarantee in the amount
of $10 million is requested for land acquisition and $5 million from the Housing Trust Fund set aside
is requested for the development of affordable housing. Mr. Watkins continued that grants
requested include a $4.5 million infrastructure grant, $500,000 for relocation assistance, and either
$6.7 million in Synthetic Tax Increment Finance (TIF) or a one time payment of $3.6 million to help
offset debt service for the Section 108 loan.
Committee member Burgess questioned the probability of obtaining a Section 108 loan. Stanley
Watkins responded that the application will have to be processed but the City has been awarded all
such previous loans for which it has applied. Committee member Lochman expressed concern about
reliance on bonds as a source of funding because they may not be approved. Mr. Lochman asked what
percentage of the Housing Trust Fund (HTF) funds will be used? Mr. Watkins answered that due to
phasing of the project, $2.5 million can be set aside from the planned $10 million bond referendum in
2008 and another $2.5 million from the $10 million bond referendum in 2010. Committee member
Foxx expressed concern about “opportunity costs” associated with the Double Oaks project and
possible conflict with other competing projects throughout the City, such as proposed redevelopment
efforts for Eastland Mall, for the same sources of funding. Mr. Foxx added that he is not in favor of
using Neighborhood Improvement (NIP) bonds, as it may result in the deferral of money from
projects already in line for completion. Ms. Burgess asked if staff had considered the use of an
Amendment 1 process instead of a TIF? A. C. Shull of the Economic Development department
responded that policy is being discussed and has not yet been established for Amendment 1 TIF
deals. Greg Gaskins, City Finance Director, noted one disadvantage of an Amendment 1 TIF as it is a
lower rated debt. Mr. Gaskins also questioned whether this project could be approved as an
Housing and Neighborhood Development Committee
Meeting Summary for June 18, 2007
Page 3
Amendment 1 TIF. Ms. Burgess asked what is the City’s investment per unit? Lee Cochran of The
Housing Partnership responded $28,000 per unit, excluding commercial development.
Mr. Lochman asked for the proposed start date for redevelopment? Lee Cochran answered that some
demolition and land clearing would begin in 2011. Mr. Lochman inquired about The Housing
Partnership’s source of revenue. Pat Garrett stated that The Housing Partnership will borrow $12
million from Wachovia. She added that thus far, approximately $500,000 has been spent on due
diligence, relocation assessments and environmental issues. Ms. Garrett informed the Committee
that no additional extensions can be obtained and the loan will be sold by HUD in September 2007.
Action: The Committee directed staff to provide the following:
ƒ Provide greater specificity regarding sources of funds for the Synthetic TIF
Alternative and Infrastructure Grant for the project;
ƒ Identify “competing” projects for those sources of funds;
ƒ Ask the Partnership to contact Wachovia, their lender, to determine the minimum
action needed by the Council at this time;
ƒ Determine if the Synthetic TIF increment can be reduced to less than 90%.
Summer Schedule:
The Committee agreed on July 16th as a possible future meeting date.
The meeting was adjourned at 12:55 p.m.
City Council
Housing and Neighborhood Development Committee Meeting
Monday, July 9, 2007 – 11:30 a.m.
Charlotte-Mecklenburg Government Center
Conference Rooms CH-14
Committee Members:
Susan Burgess, Chair
Anthony Foxx, Vice-Chair
Michael Barnes
Don Lochman
Pat Mumford
Staff Resource:
Julie Burch, Assistant City Manager
____ ___
AGENDA
I.
Double Oaks Feasibility Study
(Attachment A)
II.
Summer Schedule
Note: Attached is June 18, 2007 Follow Up Report (Attachment B)
_______________
Distribution:
Mayor/Council
Pam Syfert, City Manager
City Leadership Team
Corporate Communications
Debra Campbell – Planning Department
Anna Schleunes- City Attorney’s Office
Saskia Thompson- Manager’s Office
CDC Executive Directors
Housing Trust Fund Advisory Board
Neighborhood Leaders
Budget Office
Ruffin Hall
Phyllis Heath
Lisa Schumacher
Charlotte Housing Authority
Charles Woodyard
Troy White
Charlotte-Mecklenburg Housing Partnership
Pat Garrett
Charlotte-Mecklenburg Police Department
Chief Darrel Stephens
Gerald Sennett
Neighborhood Development
Stanley Watkins
Richard Woodcock
Stan Wilson
Stephanie Small
Walter Abernethy
Pat Mason
Community Relations
Willie Ratchford
Ledger Morrissette
County Attorney’s Office
Marvin Bethune, County
Attorney
Attachment A
Double Oaks Redevelopment Proposal
Housing and Neighborhood Development Committee
July 9, 2007
Committee Request:
Make a recommendation to City Council on the Double Oaks Redevelopment Concept and
authorize the City Manager to undertake the required implementation steps, which will be
subject to the Council’s review and approval.
Policy Framework:
• City’s Mixed Housing Development Policy adopted by City Council on September 24,
2003.
• The City’s FY2008 Consolidated Plan was approved by City Council on May 29, 2007. The
Plan identified the need for affordable, safe and decent housing for low and moderateincome families. The Plan reaffirmed the three basic goals of the City’s Housing Policy -
Preserve the existing housing stock, Expand the supply of affordable housing, and
Support family self-sufficiency initiatives. The plan included undertaking a feasibility
analysis of the Double Oaks Apartments.
Project Description:
ƒ On April 9, 2007, the City Council approved the Housing Partnership’s request to work
with City staff to develop a financing plan for the redevelopment of the Double Oaks
Apartments.
ƒ The Double Oaks Redevelopment project is a mixed income and mixed use development
on 98 acres of land (70 acres owned by Double Oaks Apartments, 10.5 acres owned by
the Housing Partnership, 16.5 acres owned by Mecklenburg County and 1.28 acres
owned by the City) along the Statesville Avenue Corridor. The project is roughly
bounded by Statesville Avenue, Anita Stroud Park, Interstate 77 and LaSalle Street.
o
o
o
Double Oaks today – The apartments were built in 1949 and include 576 units in
165 single story barracks style buildings. The units rent for between $300 to
$450 per month and about 66% are occupied. The property is zoned R-22MF,
which permits 22 units per acre.
Redevelopment Proposal – The redevelopment includes 940 residential units and
approximately 108,000 square feet of non-residential development. The housing
development will serve low, moderate and middle income households. A
development of this size and complexity will be implemented in phases and is
expected to be completed over a ten year period. The project plan includes
relocation of the existing residents and a one-for-one replacement of the 576
low income units currently on the site. 300 units will be replaced on-site and the
remaining 276 will be replaced over a ten year period by the Housing Partnership
in other projects.
Project Financing – The $120 million redevelopment project will require City
investments of $26.7 million comprised of a combination of loans and grants:
Attachment A
Loans
Section 108 Loan
$10,000,000
Housing Trust Fund
$5,000,000
Grants
Synthetic TIF
Infrastructure grant
CDBG grant
Land Donation
$6,700,000*
$4,500,000
$500,000
$58,800
Total
Total
$11,758,800
$15,000,000
* - The Synthetic TIF is being used to support 46% of the Section 108 loan debt
service. An alternative for City Council is to make a one-time investment of $3.6
million.
•
City Council Decision Schedule
Below are the major decision points that require City Council involvement in moving
forward on this project:
Year
2007
2008
2010
Activity
Approve Concept and Authorization to proceed (July)
Approve Section 108 Loan Application (August)
Approve Synthetic TIF Framework (September)
Approve CDBG Grant (January)
Approve Land Transfer (January)
Approve Infrastructure Grant (May-June)
Approve Housing Bonds Set Aside (May-June)
Approve Infrastructure Grant (May-June)
Approve Housing Bonds Set Aside (May-June)
Next Steps
• To ensure that the Double Oaks Apartments are secured for this project, the
Housing Partnership acquired a purchase option on the property. The Housing
Partnership has requested that City Council formally commit to the project. After
that commitment, the Housing Partnership would exercise its option and purchase
the Double Oaks property. The Housing Partnership needs to acquire the property
before August 1, 2007.
Attachments:
Double Oaks Feasibility Report
Double Oaks Redevelopment
Presentation to City Council
Housing & Neighborhood Development Committee
July 9, 2007
Greater Statesville Avenue Corridor
•GREENVILLE
100+ homes
•GENESIS PARK
100+ homes
•PARK AT OAKLAWN
178 apartment
71 homes
83 senior housing
•DRUID HILLS
63 senior housing
46 duplexes
Double Oaks Today
Double
Oaks
Area Map
Site is 1.5 miles from Trade and Tryon
Master Plan
Redevelopment Summary
„
Proposed 98-acre Redevelopment plan
„
$120 million development over 10-year period
„
Components
„
940 Residential Development
„
„
„
„
„
120
300
308
212
market rate apartments
affordable apartments
market rate single family/townhouses
condominiums
108,000 sq. ft of Non-Residential Development
„
„
„
Live/work
Retail
Services
Parks & Greenways
Roadways
Multifamily
Single Family - attached
Single Family - detached
Civic & Commercial
City Financial Participation –
Financial Participation
* Represents 90% of incremental tax revenue
City Financial Participation –
Loans
Loan #1 – $10 million Section 108 Loan Guarantee
„
Source: Section 108 Loan
„
Cost to the City: $0*
„
Benefits: Decreases cost of project to City
*Cost to City only if project is not successful
Loan #2 - $5 million Housing Trust Fund Set-aside
„
Source: Housing Trust Fund
„
Cost to the City: $5 million
„
Benefits: 300 units of affordable rental housing at 60% AMI
with 75 at 30% AMI; $32 million in leveraged private investment
City Financial Participation –
Grants
Grant #1 - $6.7 million Synthetic TIF
„
Source: Future Tax Revenue of redevelopment
„
Cost to the City: $6.7 million*
„
Benefits: $7.7 million of incremental City tax over 20 years.
Used to partial support debt service on Section 108 loan.
*One-time up front grant of $3.6 million grant is an alternative source
Grant #2 - $4.5 million in Infrastructure
„
Source: Neighborhood Improvement Bonds (FY09 and FY11)
„
Cost to the City: $4.5 million
„
Benefits: Sidewalks, Curb and Gutter, Connectivity, Gateway to
Uptown, Green Infrastructure (Parks, Greenways, Storm Water)
City Financial Participation –
Grants
Grant #3 - $500,000 Grant
„
Source: CDBG (FY09)
„
Cost to the City: $500,000
„
Benefits: Relocation, blight removal, crime reduction, job
creation
Grant #4 - $58,800 Land Donation
„
Source: Land owned by City
„
Cost to the City: $58,800
„
Benefits: Supports master plan
City Financial Participation –
Financial Participation
Loans
Grants
Section 108 Loan $ 10 million
Housing Trust Fund $ 5 million
Synthetic TIF
Infrastructure
Relocation Grant
Land Donation
$6.7 million*
$4.5 million
$ .5 million
$ .0 million**
Total:
Total:
$11.7 million
$15 million
* - Synthetic TIF is used to support 46% of the Section 108 loan debt service. An alternative for
Council is a one-time set aside of $3.6 million, which will reduce the total grant amount to $8.7
million.
** - The land donation is $58,800
City Timeline
Comparison
„
Similar project would be the Piedmont Courts
Hope VI project…$15.2 million
„
City Investment
„
„
„
„
$8.8 million in on-site & off-site infrastructure
$1.2 million in land acquisition
$178,000 in land donations
$5 million in Housing Trust Fund
Summary of Benefits
„
City investments will leverage $120 million in
housing and commercial investments along
Statesville Avenue Corridor.
„
Expected to generate tax returns of $8.8 million
over 20 years, with net return of $2.1 million
after the Synthetic TIF.
„
Adds 940 housing units with 300 affordable
units and 100,000 square feet of commercial.
Next Steps
„
Approve Double Oaks Redevelopment
Concept and authorize City Manager to
initiate implementation steps, which are
subject to Council review and approval.
„
The Housing Partnership has an option on
the Double Oaks Apartments and needs to
exercise the option by August 1, 2007.
Questions
…Tomorrow Starts Today
Attachment B
Follow Up Report
Housing and Neighborhood Development Committee
June 18, 2007
The following items are requests for information that resulted from the June 18, 2007
H&ND Committee Meeting:
I.
Boarded Up Residential Structures
1. Committee Request: Provide a list of City-owned properties that are boarded up, in addition
to Johnston and Mecklenburg Mills.
Result: Staff will research and provide a list of all City-owned boarded up structures.
2. Committee Request: After one year, provide a report on the success of monitoring the six
month time period and determine whether the time period needs to be modified.
Result: Pending approval of the ordinance, staff will track the process and provide, after one
year, a report and a recommendation on whether the six month time period needs to be
modified.
3. Committee Request: Inform the Committee of any additional issues that arise with the
proposed ordinance prior to the scheduled decision on July 23, 2007.
Result: Staff will inform the Committee of any issues of which staff is made aware prior to
July 23, 2007.
II.
Sign Ordinance
4. Committee Request: Council has received citizen feedback that sign contractors are posting
off-premise real directional estate signs on Friday evenings and nights, rather than on
Saturdays after 8:00 a.m., as allowed by the Zoning Ordinance. In an effort to eliminate the
placement of off-premise directional real estate signs on Friday nights, staff should consider
Friday night sign sweeps or amend the zoning ordinance to disallow the placement of offpremise directional real estate signs.
Result: See attached.
1
Attachment B
Off-premises Directional Real Estate Signs
The Zoning Ordinance allows the posting of off-premises directional real estate signs
from 8:00 a.m. on Saturdays to 6:00 p.m. on Sundays. City Council has received citizen
feedback that sign contractors are posting these signs on Friday evenings and nights,
rather than on Saturdays after 8:00 a.m. Code Enforcement staff is not equipped to
address this issue without being exposed to personal safety issues associated with high
volume traffic, pulling moving vehicles over, night surveillance activity and other
associated concerns.
To help address this problem CMPD has joined with Code Enforcement and will
proceed with the following strategy:
Beginning in the Southside/Providence/I-485, area officers will be directed to stop
sign contractors erecting signs too early. Sign contractors will receive a warning
notice as specified in the Zoning Ordinance and be directed to remove all signs
already posted outside the specified time frame. Officers will provide Code
Enforcement staff with license tag numbers and owner information for follow up
contact and additional penalties if this violation recurs.
Code Enforcement has also contacted the Home Builders Association, the Land
Development Association and the Home Builders Council and advised them of the
issue of the early posting of off-premises directional real estate signs. Code
Enforcement has asked for a specific listing of sign contractors used regularly for
these postings. A follow up mailing reinforcing the regulations and advising
contractors of stepped up enforcement and potential penalties will be sent out to
those on the list.
2