Charlotte staff previews $4.1M TOD loan to secure 5 Points site for mixed‑income development
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Summary
City staff recommended a short‑term, first‑lien loan using TOD and housing trust funds to help Historic West End Partners acquire a ~1.25‑acre 5 Points site for a mixed‑use, mixed‑income project estimated at roughly 145 units; council will consider formal action Feb. 23.
City staff on Monday previewed a proposal to use transit‑oriented development (TOD) and housing trust funds to provide a short‑term loan that would let a developer acquire a 1.25‑acre 5 Points parcel and preserve the site for mixed‑income housing.
Deputy City Manager Sean Heath and the project presenter said the city would take a first‑lien position on a short‑term loan up to 90% of the lesser of the contract or appraised value. The recommended city investment shown in staff materials is about $4.1 million; the developer would fund the remaining amount. Staff said the site has a “very high site score,” direct access to a nearby light‑rail stop and is contoured for a mixed‑use project that staff currently estimates at about 145 units.
“We would next turn to your housing trust fund,” the presenter said, describing a funding stack that combines roughly $1.47 million in TOD balance and a housing trust carve‑out to cover the city share. The presentation also identified a $19 million total TOD fund pool, with roughly $3 million already paid out and about $1.47 million available now for short‑term land investments.
Council members pressed staff for financial and timing details. Council Member Renee Johnson asked for appraisal dates and comparables; staff said appraisals were completed within the last six months and explained that analysts had valued the property as vacant land under a redevelopment scenario rather than as single‑family lots. Greg Crawford, a city real‑estate speaker, said the appraisal reflects highest‑and‑best‑use analysis and independent review.
Several council members praised the approach as a way to compete for scarce land in a growing market and to secure sites for affordable housing near transit. Council Member Dimple Ajmera noted the two‑stage RFP and said council would see a formal request for action on Feb. 23.
Next steps: staff will return to full council on Feb. 23 with a formal action item. The proposal remains in the stage‑one, land‑acquisition phase; a separate stage‑two review would evaluate any final development plan if the acquisition proceeds.