Charlotte City Council approves uptown land sale

The Charlotte City Council voted unanimously Monday to sell for $12.2 million a nearly four-acre piece of uptown land off of Stonewall Street, with the proceeds going to pay off debt from the NASCAR Hall of Fame.

Pollack Shores Development, an apartment builder, has a contract to buy the land. There still could be an upset bidder, but any new offer must be at least 5 percent higher than the sales price.

The Atlanta-based Pollack Shores is already building a 250-unit apartment complex on Central Avenue near Plaza Midwood and a 273-unit complex on Park Road.

Pollack Shores would add to an area of uptown that will change dramatically.

A few blocks south of the Pollack Shores site, Proffitt Dixon is building the 230-unit Fountains Uptown apartment complex at Stonewall and McDowell streets.

Crescent Communities recently announced a Whole Foods grocery and 450-unit apartment complex at Stonewall and Caldwell streets. That project will be built on a separate parcel of city-owned land that Crescent has a contract to purchase for $10.3 million.

When Charlotte was planning the NASCAR hall, it partnered with the state to remake the Interstate 277 interchange at Caldwell Street. The intersection’s footprint was reduced, creating new pieces of land that have been marketed for development.

Two more tracts near the site are up for sale. Deputy City Manager Ron Kimble said he believes those two parcels will generate between $8 million and $9 million.

When the NASCAR hall was built in the last decade, part of the construction costs came from two $20 million loans.

One loan was backed by the sale of hall sponsorships, which fell short of expectations. The city wasn’t able to make a dent on repaying that loan, and earlier this year the city came to an agreement with Bank of America and Wells Fargo to write off about $19 million.

The second $20 million loan is backed by the sale of the new pieces of land. Kimble said if the Pollack Shores sale closes, the city would be able to pay off that debt.

“We would fully extinguish the loan,” Kimble said.

Low-income housing

In other action, council members voted to approve eight proposed low-income housing developments for money from the city’s Housing Trust Fund. The projects still need state funding to be built.

They voted against funding one proposed complex, Settler’s Wood off Harrisburg Road.

Council members voted against Settler’s Wood 8-2. Vi Lyles and Patsy Kinsey voted in favor of the development receiving city funding.

One proposed complex that was approved – Allen Street residences – has divided residents of the Belmont neighborhood.

The apartments at 1321 Allen Street would have 112 units. The project would cost $15.2 million and needs $4.4 million in city funding.

Vicki Jones of the Belmont Community Association urged council members to reject the application. The main reason, she said, is because the city’s policy on affordable housing locations says there is already a surplus of low-income housing in the area.

“This isn’t NIMBY,” or not-in-my-backyard arguments, she said. “I am here to challenge you to stick to your policies.”

George Dunlap, a county commissioner and member of the nearby St. Paul Baptist Church, urged council members to approve the funding application.

The other apartments that could receive city money are:

▪  Thirty apartments at 1798 Baxter Street in Cherry. The $45 million project would need $1.45 million from the trust fund.

▪  The Magnolia Gardens project at 5223 Beatties Ford Road would build 82 units. The $10.4 million development would need $1 million from the city.

▪  The Rodden Square development would build 98 apartments at 6520 Mallard Creek Road. The $12.2 million project would need $1.2 million from the city.

▪  The Charlotte Housing Authority has proposed rebuilding the Tall Oaks Apartments in Cherry. The $11.5 million project needs $1.25 million from the city.

▪  The Charlotte-Mecklenburg Housing Partnership has proposed building 70 apartments at 3924 Weddington Road. The total cost of that project would be $9.7 million. The developer has asked the city for $1.4 million.

The City Council took a controversial vote to approve a rezoning for the project in January 2014. Council member Ed Driggs voted against the project Monday.

▪  The Tuckaseegee Seniors project would add 64 apartments at 5915 Tuckaseegee Road. The project’s cost is $8 million. The city has been asked to contribute $1.3 million.

▪  Whitehall Crossing at 2600 West Arrowood Road would have 96 apartments. The $13.5 million project would need $1.44 million in city funding.

This story was originally published April 27, 2015 at 9:06 PM with the headline "Charlotte City Council approves uptown land sale."