Ballantyne development to cost taxpayers $42.5M. Why some city leaders are worried.

A massive redevelopment project in Ballantyne could cost $42.5 million in taxpayer dollars, Charlotte’s economic development director said Monday.

That’s on top of $60.5 million in private investments to support parks as well as street and transit infrastructure for the south Charlotte project called “Ballantyne Reimagined.” Over 12 years, private investment will total $1.5 billion, said Tracy Dodson, Charlotte’s economic development director, at Monday’s City Council meeting.

But as the transformation moves forward, City Council members expressed doubt about how the revamped site could address the region’s affordable housing crisis. It will incorporate a mix of retail, restaurants, four parks, a public amphitheater and around 2,000 multi-family units or apartments.

The city has a shortage of about 32,000 affordable housing units, said Pam Wideman, Charlotte’s housing and neighborhood services director.

“I think it’s a great proposal,” City Council member Malcolm Graham said. “I appreciate the affordable housing units, but it’s just not enough. A lot of service workers are going to be working there. We have to better re-imagine the transportation system to get people to the jobs.”

“Ballantyne Reimagined” would lead to 940 retail and hospitality jobs, in addition to 5,500 construction jobs and 6,100 office jobs, Dodson said. She said the redevelopment effort will spur a “more inclusive live-work-play community.”

City Council member Ed Driggs, whose District 7 encompasses Ballantyne, said the amount of public funding required — given the scope of the project and anticipated economic impact — is not “unreasonable.”

“I like the idea of having more affordable housing there, but I think we need to be realistic about the economics,” Driggs said. “The conversation we need to have is about what we would like to see there and how that cost is borne. I imagine we will continue to discuss that.”

Northwood Investors, the corporate park’s sole owner, purchased the site for $1.2 billion in 2017 — marking the single largest transaction in Charlotte’s real estate history.

The City Council is expected to vote on the public financing in May, following an April rezoning decision.

Charlotte’s contributions for the project could entail $17.5 million pulled from the city’s capital investment plan. The other $25 million is tied to property tax breaks — with roughly one-third likely covered by the city and two-thirds by Mecklenburg County, Dodson said.

Affordable housing units

The Ballantyne redevelopment will create 180 affordable housing units, Dodson said.

The project’s first phase, expected to last five years, calls for 100 affordable units. Twenty of those units would be allocated for residents earning 60% of the area median income, or $47,400 for a family of four, Dodson said. The other 80 units would be designated for residents earning 80% AMI, or $63,200 for a family of four.

Dodson said the project’s second phase includes 80 more affordable units. Of those, 16 units are for residents earning 60% AMI and 64 units are for residents earning 80% AMI.

The units would remain at those income thresholds for at least 30 years, Dodson said.

Still, City Council member Dimple Ajmera argued Charlotte and Mecklenburg County should “ask for more” to curb affordable housing deficits.

“This is not enough,” Ajmera said. “We have a responsibility when it comes to public investments to address the needs of our residents.”

Mayor Vi Lyles, quelling contentious back-and-forth comments between Driggs and Ajmera, said there is “no magic answer” to solve affordable housing issues.

“Let’s figure out where we go from here,” Lyles said. “I’m not sure we’re willing to give up jobs just over a discussion of do we connect roads and how do we build things out here. We have to be innovative, and we have to ask for help.”

Developer history

Last June, Northwood Office, a subsidiary of Northwood Investors, announced its plans to overhaul the suburban office park in an effort to stay competitive with areas like South End for companies and workers.

The first phase is expected to be built on the site currently home to a public golf course, between the Ballantyne and Aloft hotels.

Local developer Smoky Bissell’s company, The Bissell Cos., developed the office park more than 20 years ago on what was once farmland, hunting fields and trees.

Today, Ballantyne is a 2,000-acre community with more than 4 million square feet of office space in the business park. It houses companies like Wells Fargo, TIAA and Brighthouse Financial.

The project is not the first change Northwood has announced since purchasing the park. Northwood Office announced last May it had started construction on an 11-story office tower and luxury apartment building. It will house the first apartments in the corporate park when it opens in 2021.