Title
Billingsley Mixed-Income Housing Project - Development Agreement
Action
Authorize the County Manager to negotiate the terms and conditions and execute a Development Agreement and all related necessary documents for the Billingsley Mixed-Income Housing project with DreamKey Partners, Inc.
Staff Contact: Jacqueline McNeil, Real Estate Management Director
Roberta Whitner, Senior Real Estate Coordinator
Presentation: Yes
BACKGROUND/JUSTIFICATION:
In the Fall of 2020, DreamKey Partners, Inc. (“Developer”) was selected to develop +/- 14 acres of County-owned property located in the historic Grier Heights neighborhood for a mixed-income housing development. Since that time the Developer conducted community engagement sessions and rezoned the site to an Urban Residential zoning category.
At its June 22, 2022 meeting, the Board authorized the County Manager to negotiate the terms and conditions and execute a pre-development Memorandum of Understanding (“MOU”) with the Developer which outlined the major development expectations. At its December 5, 2023 meeting, the Board authorized the County Manager to negotiate the terms and conditions and include options for a transfer and ground lease agreements. The option agreements and MOU now serve as the basis for the Development Agreement.
The Development Agreement between the County and the Developer governs the land transfer and lease terms, funding, and the horizontal and vertical development components. The vertical development components are planned in three phases which are: Phase I (For Sale), Phase II (Multi-Family Rental) and Phase III (Senior Rental).
The key terms and project schedule for the Development Agreement include the following:
DEVELOPMENT AGREEMENT
Parties
• Mecklenburg County (“County”)
• DreamKey Partners, Inc. (“Developer”)
Ground Lease Terms for the Multi-family and Senior Component
• 70 years minimum or up to 99 years if required for Developer financing
• 30-year affordability period. After 30 years, all units will still be leased to residents having household incomes of not more than 80% AMI
Transfer Terms for the For-Sale Component
• All for-sale units will be HouseCharlotte eligible targeting households earning up to 80% AMI and shall have affordability restrictions for at least 15 years
Total Units and AMI Mix
286 residential units total, subject to final engineering designs, but not less than 260 units
Phase I - For Sale Units:
56 for-sale detached and attached single-family units
• 50 - 80% AMI - 19 Single-family detached homes
• 60 - 80% AMI - 35 Single-family attached (townhomes)
• 60 - 80% AMI - 2 Duplexes
Phase II - Multi-family Units:
150 multi-family rental units
• 30% AMI - 30 units
• 60% AMI - 90 units
• 80% AMI - 30 units
Phase III - Senior Units:
80 senior rental units
• 30% AMI - 54 units
• 60% AMI - 16 units
• 80% AMI - 10 units
Additional Public Benefits
• MWBE Goal of at least 23% of total project dollars expended (per County adopted business diversity and inclusion (“BDI”) Provisions for developers)
- 15% MBE
- 8% WBE
• Homebuyer financial literacy and education classes
• Onsite apartment amenities
• Pedestrian trails
• Demolish and remove all existing buildings and improvements on the property
County Funding
The County commits to funding $4,818,915, conditioned upon the Developer fulfilling the requirements of the Development Agreement.
The funding is allocated as follows:
• Demolition, Environmental & Mitigation: $1,000,000
• Public Road Infrastructure: $1,300,000
• Charlotte Water & Sewer Capacity Fees: $822,915
• For-Sale Component Subsidy & Support: $1,696,000
Anticipated Timeline (Major Milestones)
• Demolition Work Begins: 3rd Quarter 2024
• Horizontal Site Work Begins: 1st Quarter 2025
• Vertical Construction Components Begin:
o Phase I (For-Sale): 1st Quarter 2026
o Phase II (Multi-Family): 2nd Quarter 2026
o Phase III (Senior): 2nd Quarter 2027
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
$4,818,915 approved in FY23 and FY24 budgets