Vote on 215 apartments coming to 319 Biltmore Ave. set for Asheville City Council

ASHEVILLE - A long-awaited development slated for 319 Biltmore Ave. south of downtown has cleared its penultimate hurdle, a project that could deliver 215 units of mixed-income housing to the area, 65 of which would be deeded affordable at 60% and 80% area median income.

The city-owned parcel sits at the intersection of Biltmore Avenue and White Fawn Drive, adjacent to the recently rebuilt development of Lee Walker Heights, renamed Maple Crest Apartments, the city's oldest public housing complex.

At its Aug. 16 meeting, the Housing and Community Development Committee, comprised of three Asheville City Council members, voted unanimously to recommend approval for City Council to authorize a purchase and sales agreement with Laurel Street Residential, a Charlotte-based developer that would purchase the property from the city for $1.

Final approval rests with City Council at its Aug. 23 meeting.

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“I don’t want anyone to think my calm exterior means that I’m less than enthused," said council member Antanette Mosley, who had pushed last year for the 5.3-acre property to become part of the city's reparations program. "Really, rightly understood, I’m doing cartwheels.”

Mosley told the Citizen Times that while the conversation to add the project to the reparations program did not ultimately move forward, the 319 Biltmore property became part of a larger equity conversation.

“We are moving on our end with reparations and equity in mind, on a parallel track with the reparations commission that has already been established,” Mosley said.

More than its proximity to Maple Crest Apartments at Lee Walker, "it's an entryway to town," Mosley said, with a close proximity to the Southside neighborhood, Memorial Stadium and the East End/Valley Street community, located in a historically Black neighborhood.

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"The developer is aware of the history," Mosley said, noting that Laurel Street is a minority and woman-owned business. "And is moving forward with that history in mind."

$846 for a 1-bedroom in downtown?

With a mix of one-, two- and three-bedroom apartments, the project offers greater access for families, which Community and Economic Development Director Nikki Reid said is an important piece of increasing affordable housing across the city.

"In some projects that we have seen, a very viable way to get that affordability is to focus on studio and one bedrooms, because the cost to build those are cheaper," Reid said.

"But I want to applaud Laurel Street because they are seeking to spread affordability across that unit mix so that we can actually see families able to live in this apartment complex.”

The total number of bedrooms in the proposed development is approximately 321, according to the city staff report. The project proposes 131 one-bedroom and studio apartments, 62 two-bedrooms and 22 three-bedrooms.

Of the 215 units, 20% or 43 units would be available at 60% AMI or below, with half accepting housing choice vouchers. Another 10%, or 22 units, would be available at 80% AMI or below, and 150 units will be rented at market price.

All affordable units will be deed restricted for 30 years.

Asheville lists 80% AMI as a $42,100 for a one-person household, up to $54,100 for a three-person household.

At 60% AMI, $31,575 is listed for a one-person household, up to $40,575 for a three person-household.

Maximum rent for a one bedroom at 60% AMI is $846, increasing to $1,175 for a three-bedroom. At 80% AMI, rent is $1,128 and $1,563, for a one- and three-bedroom respectively.

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'A long time coming'

As many participants in the Aug. 16 meeting noted, this property has been the subject of city conversations for years.

"This is a long time coming," Reid said, calling the meeting a "key milestone" in a years-long effort.

The land adjacent to Maple Crest Apartments and near downtown's South Slope and the Oakhurst neighborhood was once a car dealership and later was owned by Duke Energy, which considered it for a power substation.

In a 2020 arrangement with the power company, the city bought the property for $5.3 million, using voter-approved affordable housing bonds that will be paid back at a low interest rate.

In February 2020, the city issued a request for proposals for a mixed-use development for the parcel, in the hopes the project would complement the Maple Crest Apartments at Lee Walker next door.

The city put $400,000 into demolition of the existing building, environmental site remediation and infrastructure investments.

Future city investments include a traffic signal at the intersection of White Fawn Drive, John Walker and Biltmore avenues. The price tag for the traffic signal is estimated to be an additional $400,000.

Laurel Street president and CEO Dionne Nelson said the company worked hard to reduce the subsidy needed in the deal to only include the land — a $5.3 million purchase, which will be sold to the developer for $1. She said they do not anticipate making any further asks of the city, such as a Land Use Incentive Grant or Housing Trust Fund.

Ronn Stewart, senior vice president and co-leader of development with Laurel Street, said he was excited to have reached this stage of the proposal.

"It's been a labor of love for us, as an organization and me personally," Stewart said. "I've been following this property since 2019, (and I'm) so very excited to finally reach this day."

Stewart said along with the rental units, the development will feature a number of amenities, including onsite leasing, a residents' lounge, fitness and computer center, outdoor green space and onsite parking.

It will also secure 1,000 square feet of commercial space to be leased at below-market rents to nonprofit and community groups, Stewart said.

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The entire project carries a price tag of $51.9 million. If the proposal secures council approval, Nelson said construction could be completed by the end of 2025.

In other news

Also at its Aug. 16 meeting, the committee recommended approval of an $850,000 Housing Trust Fund ask from Mountain Housing Opportunities, which proposes a 100% affordable 50-60 unit development off Tunnel Road in East Asheville.

The low-income housing tax credit would be used to purchase the property.

The recommendation passed in a 2-1 vote, with council member Sage Turner voicing some reservations. Asheville City Council will have final say at its Aug. 23 meeting.

The 1.31-acre site is located at 16 Restaurant Court, just behind the Mountaineer Inn, with units proposed for a range of affordability, from 30%-60% AMI, in a mix of one and two bedrooms.

The project will also reserve 20% of its units, or 10-12 units, for young adults aging out of foster care, said Affordable Housing Officer Sasha Vrtunski.

She noted that this is a very vulnerable population, with 31%-46% of youths exiting foster care likely to experience homelessness by age 26, according to researchers from the National Alliance to End Homelessness.

Much of the discussion surrounded a lack of other secured funding commitments, a policy requirement that usually precedes council approval of a Housing Trust Fund.

Despite it not yet meeting this requirement, Vrtunski said city staff still recommends approval of the project, as Mountain Housing Opportunities has committed to securing other investments, and if the project does not proceed, the city will get its investment back.

Geoffrey Barton, director of real estate development at Mountain Housing Opportunities, said the nonprofit is working to secure the property and will then begin assembling its "gap financing."

City Manager Debra Campbell said staff believes that allowing Mountain Housing Opportunities to purchase the property would be in the city's best interest, accompanied by the necessary "claw backs" if the project is not successful.

"If this project isn't successful, we will get paid back. Period. ... We will get those resources back," Campbell said. "I hope that you are noticing at 319 (Biltmore) and with this particular project, that we are trying to connect a lot of dots in terms of looking at the entire needs of our community."

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky. 

This article originally appeared on Asheville Citizen Times: 319 Biltmore: 215-unit Asheville development clears penultimate hurdle