Developers of $700M Brooklyn Village project seek another delay. Here’s why
Another delay has emerged for the long-awaited Brooklyn Village mixed-use redevelopment project, adding to the growing frustration among Mecklenburg County commissioners.
Developers of the $700 million project told The Charlotte Observer they requested an extension on its demolition plans of the vacant Board of Education Building along Martin Luther King Jr. Boulevard. The update was first reported by WFAE.
The reason? Over 150,000 square feet of asbestos-containing materials was found in the county-owned building.
“The presence of 50,000 square feet of asbestos is a big environmental concern and one that poses a risk to public safety and we’re treating it as such,” said Donahue Peebles III, executive vice president of The Peebles Corp.
In an April letter sent to the county by BK Partners, through The Peebles Corp., developers said they have to clean up the site, which will be a “lengthy and expensive process.”
“As a result, we have formally notified Mecklenburg County that this constitutes a Force Majeure Event under our development agreement and are seeking an extension of certain project milestones through July 31, 2026,” according to a statement from The Peebles Corp. sent to The Charlotte Observer.
A “force majeure event” is a legal term allowing a party to be excused from an agreement because of an unforeseen event.
Under the contract between the county and BK Partners, the developer had until July 28 to demolish the building, according to the letter. The demolition was a “Project Milestone” that needed to be completed within 24 months after the closing date on the property, which was July 28, 2023, according to the letter.
County commissioners discussed the extension request in a closed session last month, according to WFAE, where some commissioners expressed continued exasperation with the project’s timeline and doubt that the project will ever get started.
The county had 30 days from the date of the letter to approve the extension. Peebles said the county did respond to the letter but declined to comment further.
County officials also declined to comment on its response to the letter.
What is Brooklyn Village?
Peebles Corp., in partnership with Conformity Corp. under the name BK Partners, were selected by the county to be the master developers of a new community in Charlotte’s Second Ward in 2016.
It’s a section of the city that once was home to a vibrant and predominantly Black neighborhood, Brooklyn, until it was destroyed in the name of urban renewal.
Overall, the 17-acre Brooklyn Village project would create over 1,200 residential apartments, a hotel, retail and commercial space. The redevelopment is planned to be an ode to the Brooklyn area with pieces of history, collected by the developers, spread throughout the property.
Delays, changes for Brooklyn Village project
But the project has been repeatedly delayed, and the discontent between the county and BK Partners has been brewing since 2019.
Initial delays were caused by a five-year closing process, which came to an end in 2023.
Construction on the first phase of the project was supposed to start soon after closing. But due to high interest rates, lack of lending support and an oversupply of apartments, according to Peebles, construction was moved from this summer to 2026.
Work has been completed at the site, including some of the horizontal development, which includes infrastructure projects. Walton Plaza was demolished in 2023.
But there’s no vertical construction in sight.
To move the first phase of the project forward, Peebles presented a revamped plan to the commissioners in February that involved building a smaller apartment complex but with all affordable units.The original plan called for 552 apartment units with 55 of them being listed as income-restricted.
The new plan would be 250 apartments, spread across two buildings, for those making 30% to 80% of the area’s median income. For a family of four, that’s an income range between $31,800 and $84,800.
It would be built in partnership with Inlivian, Charlotte’s housing authority, and Legacy Real Estate Development, Peebles’ company, which focuses on income-restricted housing.
Commissioners, while excited for the prospect of more affordable housing, still expressed disappointment with the project’s timeline during the February meeting.
What’s next for Brooklyn Village?
Many unknowns remain.
It’s unclear what the legal ramifications would be if the county does not agree to the extension or if Peebles doesn’t fulfill the contractual agreement.
The BoE building is located where the second phase of development will occur. And while the asbestos clean-up is necessary, it may not impact construction of the project’s first phase, Peebles said.
That delay starts with the county needing to make a decision on the proposed changes to the first phase of construction, including votes on the contract amendment and bringing on Inlivian and Legacy as the new developers on the project.
Peebles also requested $2.5 million in gap financing from the county, which commissioners need to vote on.
And BK Partners recently asked for funding assistance from the city of Charlotte through the Housing Trust Fund. Developers asked for $13.5 million, one of the highest requests the city has seen. City officials initially denied the request but said it could be revisited later.
Peebles added that he recently submitted six new options to the city that would “reduce its allocation.” A timeline on those decisions haven’t been reached and until then, the site will remain inactive.
“If we had the money, we would start tomorrow,” Peebles said. “I think everybody wants the project to move forward. Certainly we do... We understand and we share their frustration. We welcome the opportunity to continue the discussions with respect to the affordable housing.
We’re hopeful that we can come to a collaborative solution to develop something that activates the site and delivers the single-most meaningful need.”
This story was originally published June 6, 2025 at 5:20 AM.
