Council hears details of proposed Providence Road redevelopment, tax-increment grant terms discussed

Charlotte City Council members and staff heard a detailed presentation on a proposed public–private partnership to redevelop roughly 105 acres along Providence Road, including new mixed‑income housing, sidewalks, trails and roadway work, but took no final action on a reimbursement agreement at Tuesday’s meeting.

City staff described the project as a “transformative revitalization” about 7 miles from Center City that would include 108 workforce housing units (100 targeted at households up to 80% of area median income, 8 at up to 60% AMI), developer cash contributions of $500,000 for affordable housing, greenway and park land donations and an expanded multi‑use bridge over MacAlpine Creek. The developer team has analyzed traffic impacts at more than 20 intersections and proposes roadway re‑alignments, new turn lanes, medians, signals and pedestrian upgrades across the corridor.

The revised economic terms presented to council propose an infrastructure reimbursement agreement using a tax‑increment grant (TIG) not to exceed $19 million to be reimbursed through 45% of incremental city and county property taxes over 15 years (or until fully reimbursed). Staff estimated the full build‑out could create about $490 million in new taxable value by 2033 and produce more than $1 million a year in net incremental city property tax revenue after TIG payments. Staff said the city’s share of the $19 million, if tax rates stayed constant, would be about $6.9 million and the county’s share about $12.1 million.

Council members pressed staff on public‑safety accommodations tied to the development. Staff described revised terms under which Levine Properties (via L&R Development LLC, a project LLC) would extend an option to the city to acquire a highlighted 1.2‑acre parcel for public safety use within five years of rezoning approval at 80% of current appraised fair‑market value; if the city extends the option beyond five years, a new appraisal would reset the 80% price. Staff said the city would reimburse Levine Properties for real property taxes on that parcel for years one through five if the option is exercised and noted Levine would have a right of first refusal should the city relocate Station 19 and sell the land under the existing station.

Councilmembers also discussed TIG practice and past projects. Staff told the council that since 2004 the city has approved multiple TIGs and currently has nine active TIGs at various stages; the city has committed up to $69 million toward public infrastructure across tax‑increment grant agreements and staff estimated those public investments leverage billions in private development. Staff also described TIGs as reimbursement instruments paid only from new incremental taxes in a defined increment area, and said typical grant terms are 40–90% of incremental taxes for up to 10 years (though staff has sometimes extended terms for large projects).

Councilmember Luana Mayfield repeatedly pressed staff about the city’s precedent for constructing public safety facilities on leased land and said she had concerns about building a station on property the city did not own. Staff replied the revised approach being discussed is not a lease but an option to acquire at a discounted (80%) appraised price for a defined period, and characterized that language as the update to address leasing concerns raised in committee.

Councilmembers asked about county coordination; staff said Mecklenburg County’s economic development committee had referred the TIG to the full board for a January decision. Staff identified L&R Development LLC as a joint venture between Northwood Raven and Levine Properties and said the proposal was introduced to the county committee in October and to the city’s jobs and economic development committee in November before referral to full council.

No formal infrastructure reimbursement agreement or interlocal was approved during the meeting. Staff told council the item was on the agenda for consideration but council discussion focused on clarifying public‑safety terms, TIG mechanics and MWSBE goals. Several members urged continued committee briefings and follow‑up with county partners before the bodies consider final execution.

Ending: City staff and the developer framed the Providence Square redevelopment as an opportunity to add workforce housing, parks and multimodal connections while using TIG reimbursements to support public infrastructure; council members signaled interest but pressed for clearer timelines, public‑safety commitments and intergovernmental alignment before authorizing a reimbursement agreement.