Title
Providence Square Infrastructure Reimbursement Agreement
Action
Action:
A. Authorize the City Manager, or his designee, to negotiate and execute an infrastructure reimbursement agreement with LNR Development, LLC for the construction of public infrastructure in an amount up to $19 million to be reimbursed through 45 percent of the incremental City and County property taxes from a designated area over 15 years, or until fully reimbursed, whichever is earlier, and
B. Adopt a resolution approving an Interlocal Agreement with Mecklenburg County for the Providence Square Infrastructure Reimbursement Agreement.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Todd DeLong, Economic Development
Explanation
§ Levine Properties and Northwood Ravin (Developers) are collaborating on a coordinated rezoning of approximately 105 acres near the intersection of Providence Road and Sardis Lane in Council District 6.
- The Developers have created an affiliated entity, LNR Development, LLC, to support coordination of the Developers’ infrastructure obligations under this Agreement.
§ The proposed redevelopment will replace the existing deteriorated buildings on the land controlled by Levine Properties with a new pedestrian oriented mixed-use village containing residential, commercial, and recreational uses along with large open space areas, new park land, and other improvements.
§ Levine Properties proposes to build the following:
- Approximately 225,000 square feet of commercial (retail and office) space;
- 28,000 square feet of indoor recreational and/or daycare space; and
- 125 townhome units, including 879 market rate multifamily rental units and 108 housing units with income restrictions.
§ 100 of the units will be reserved for households earning up to 80% of the Area Median Income (AMI).
§ Eight of the units will be reserved for households earning up to 60% of the AMI.
§ Income restrictions will be in place for 15 years.
§ The proposed redevelopment will also include a mix of new multifamily and townhome residential units on the land controlled by Northwood Ravin, along with open space areas, new park land, and other improvements.
§ Northwood Ravin proposes to build the following:
- 95 market rate townhome units; and
- 650 market rate multifamily rental units.
§ Northwood Ravin will also make a contribution of $500,000 in support of affordable housing.
§ The proposed redevelopment will support the following public goals and initiatives: workforce and affordable housing, sustainability, park and open space, public safety, and increased mobility and accessibility.
§ On December 2, 2024, the Jobs and Economic Development Committee unanimously voted (Graham, Mitchell, Bokhari, Molina, & Driggs voted yes) to refer the item to City Council for consideration during the December 9, 2024, City Council meeting.
Action A
§ The Developers requested reimbursement of an amount not to exceed $19,000,000 in public infrastructure improvements.
§ The development qualifies for a 15-year, 45 Tax Increment Grant (TIG).
§ The public improvements to be reimbursed include:
- Providence Road corridor improvements,
- New traffic signals,
- Lane modifications,
- Upgraded pedestrian crossings,
- Greenway connections,
- Multi-use path(s), and
- Improved connectivity.
§ Under the terms of the Agreement, the Developers will build the public improvements and will be reimbursed through 45 percent of the incremental city and county property taxes from a designated area over a period of 15 years.
§ Additional provisions of the Agreement include:
- Up to $19,000,000 (Approximately $6.87 million from the city and approximately $12.12 million from Mecklenburg County) in reimbursed infrastructure cost with an interest cost of carry equivalent to the city’s cost of funds;
- Developers must request the first grant payment within four years after the completion of the public improvements; and
- TIG term ends at 15 years, or when the grant payments equal a present value equal to $19,000,000, whichever occurs first.
Action B
§ The reimbursement arrangement requires the city and Mecklenburg County to execute an interlocal agreement, which obligates the county to pay 45 percent of the incremental property taxes from the designated area to the city during the term of the agreement.
§ The city will remit such payment annually to LNR Development, LLC or permitted assignees.
Charlotte Business INClusion
Prior to the City Manager executing the infrastructure reimbursement agreement, the CBI Office will negotiate a minimum 15.00% MBE and 10.00% WSBE contract goal on all work tied to this agreement.
Fiscal Note
Funding: Tax Increment Grant
Attachments
Attachment(s)
Resolution