Staff recommends Urban Atlantic as master developer for Ferry Road; requests negotiations and MOU authorization on June 17

Buncombe County staff recommended Urban Atlantic as the county’s preferred master development partner for the Ferry Road property during a June 3 presentation to the Board of Commissioners.

Staff summarized the site history: the county acquired the property in 2020, public engagement identified priorities of conservation, affordable housing and recreation, and county staff and the Development Finance Initiative (DFI) at UNC Chapel Hill prepared a solicitation and evaluation after a prior delay caused by Tropical Storm Helene.

Two proposals were received and reviewed by county staff, DFI and Equinox (which completed the land-use work). Staff said Urban Atlantic’s submission demonstrated prior experience with mixed-income, mixed-use master developments and offered a timeline staff judged reasonable. Staff recommended authorizing the county manager to negotiate a memorandum of understanding (MOU) with Urban Atlantic; the MOU would be a nonbinding document establishing responsibilities and milestones before a development agreement is negotiated.

Staff described the principal elements of Urban Atlantic’s proposal as presented: public conservation of roughly 72 acres on the site perimeter; about 530 rental units (including low-income housing tax credit buildings targeted to 30%, 50% and 80% area median income bands and 260 market-rate units); about 15 for-sale homes with a range of affordability targets; a central green, community amenities to be open to the broader public, and a site location reserved for a daycare or health clinic (no partner identified yet). The proposal assumed a total private-development cost of roughly $160 million and requested approximately $19 million of county funding; staff noted about $7 million of additional funding in the proposal depended on programs that may not be available in future years and described a potential funding gap near $26 million (about $84,000 per affordable unit in the gap calculation).

Staff explained Urban Atlantic proposed paying about $4.2 million for the market-rate land it would purchase from the county; land allocated for affordable LIHTC development would likely be made available via ground lease at a nominal cost. Staff warned the board the market is uncertain, funding sources may change, and public requirements (including tying public subsidy to low- and moderate-income households) would be specified in negotiated agreements.

The county intends to return to the board at the June 17 regular meeting to request authorization for the county manager to enter negotiations leading to an MOU and, ultimately, a development agreement. No development agreement or binding contract was executed at the June 3 meeting.