Title
Restrictive Covenants for Property on Starwood Avenue Amendment
Action
Action:
A. Adopt a resolution authorizing an amendment to a Restrictions and Covenants Agreement for property located on Starwood Avenue to extend the timeframe for completion for two for-sale affordable townhome units, and
B. Authorize the City Manager, or designee, to execute all documents necessary to complete this transaction.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Phil Reiger, General Services
Explanation
§ On September 25, 2023, City Council adopted a resolution to amend a Restrictions and Covenants Agreement (Agreement) on approximately 0.6 acres located at 10742 Starwood Avenue (parcel identification numbers 105-271-74 and 105-271-75) (Property) in Council District 5 and adjacent to the city’s extraterritorial jurisdiction (ETJ). The Property was originally part of the Willow Creek Wastewater Treatment Plant and was conveyed for the development of affordable housing in alignment with the City-Owned Real Estate and Facilities Policy and Guidelines for Evaluation and Disposition of City-Owned Land for Affordable Housing.
§ The Property is currently owned by Northway Homes, LLC (Developer), which also owns approximately 3.012 acres of adjacent land in the ETJ (parcel identification numbers 105-271-97 and 105-271-99), for a total combined development site of approximately 3.612 acres (Development Site). The Developer proposes to develop a for-sale townhome development on the site.
§ The Agreement requires the Developer to complete construction of at least two affordable for-sale townhome units on the Development Site by no later than January 31, 2026, or the Property could revert to the city.
§ During the plan review process, it was discovered that Starwood Avenue, located in the ETJ, was an “orphan” road not maintained by either the North Carolina Department of Transportation (NCDOT) or the Charlotte Department of Transportation (CDOT). Resolving the road’s status resulted in significant unanticipated delays, including the need for the Developer to petition all Starwood property owners.
§ The Developer has now obtained all required approvals from the Starwood property owners and has revised its development plans to include bringing the road up to NCDOT standards, after which NCDOT will assume maintenance of the road.
§ Due to this unexpected and significant delay, the Developer has asked the city to amend the Agreement to extend the time period for completion of the affordable units to July 31, 2027.
§ The amended Agreement will:
- Continue to require the Developer to complete two for-sale townhome units affordable to House Charlotte eligible households earning 80 percent of the area median income (with a 15-year affordability period at the time of sale to eligible homebuyers);
- Extend the Property’s reversionary restriction to July 31, 2027; and
- Provide the city with the option to extend the reversionary restriction for two additional, consecutive six-month terms which would be used only as needed and contingent upon Developer demonstrating substantial construction progress.
§ Staff support the request to extend the timeframe to facilitate the creation of two affordable homeownership opportunities, as the Developer has demonstrated a strong commitment to the project including substantial progress toward resolving the complex road-related issues that have required significant time to address.
Attachments
Attachment(s)
Map
Resolution