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Council approves General Development Plan for East Broadway project; developer explains tax-credit partnership
Summary
The council approved a general development plan for a multi-unit project on East Broadway. Developers described a 15-year tax-credit ownership structure that will yield eventual local ownership and said CARPC approved a reduced setback for placement of the building.
The City Council approved a general development plan for an East Broadway project by Northpointe Development Corporation and partners.
At second reading, a Northpointe representative explained how the federal Low-Income Housing Tax Credit (LIHTC) financing works for the project: an investor (for example, Lake Ridge Bank on a prior project) buys the tax credits and owns the vast majority of the partnership during the 15-year compliance period to use the credits and tax benefits; after the 15-year compliance period the investor exits and the development partners — including Northpointe and a local partner identified in the meeting as Solace Development — assume full ownership. The developer said the LIHTC program encourages emerging developers to partner so they can learn development skills and eventually apply directly for credits.
Planning staff also updated council on coordination with the Capital Area Regional Planning Commission (CARPC). Staff said CARPC indicated the council’s proposed shift of the building farther from the sidewalk — a change requested earlier by the Plan Commission — would be acceptable even though it encroaches beyond a 75-foot environmental corridor setback; staff also said CARPC granted permission to remove an existing gravel driveway near a stream to improve wetland protection.
The council called the roll and recorded ayes from Alder Humbert, Alder Moore and Alder Brunson before approving the motion to adopt the general development plan.
Discussion vs. decision: the developer provided project-finance context and staff confirmed CARPC concurrence on placement; the council adopted the GDP on second reading.
