Clayton town council members voted Aug. 19 to permanently abandon a portion of Mechanical Drive and to authorize the issuance of multifamily housing revenue bonds to support the Shotwell Apartments project.

Street closure: Planning staff presented a request to permanently close about 0.81 acres of Mechanical Drive right‑of‑way adjacent to the Shotwell site. The closure was tied to a condominium/recombination and to an approved site plan for a 90‑unit multifamily project; staff said the right‑of‑way abandonment will allow a small parcel of the former cul‑de‑sac to be recombined with the project parcel to extend the project’s driveway. The closure follows the procedure in North Carolina law for right‑of‑way abandonment (N.C. Gen. Stat. §160A‑299) and does not require monetary compensation, staff said. The council adopted Ordinance 2025‑08‑05 to effect the closure.

Bond sale: The council also voted to adopt two resolutions authorizing the issuance and sale of multifamily housing revenue bonds for the Shotwell Apartments in an amount not to exceed $14,500,000 and to approve the financing team and related findings required by the North Carolina Local Government Commission. Town staff emphasized that the town acts only as a conduit issuer for the bonds and carries no obligation to repay; repayment will come from project revenues and the borrower, Shotwell Partners Limited Partnership. Counsel from bond counsel McGuireWoods and town staff were available to answer questions; no public comment was offered on the bonds before council action. The council adopted Resolution 2025‑79 and Resolution 2025‑80.

Why it matters: The mechanical‑drive abandonment lets the developer consolidate right‑of‑way into the project parcel and completes a condition in the earlier site plan approval. The bond authority allows the developer to pursue tax‑exempt multifamily financing through the town as conduit issuer; the town reiterated it has no credit exposure from the transaction.

Next steps: With ordinance adoption and council resolutions in place, the developer may proceed with final recordation for the right‑of‑way abandonment and work with the financing team and the Local Government Commission to finalize bond issuance and closing. Site plan approvals and construction permits remain required before building begins.